91°F
weather icon Clear

Settlements offered: City seeks to end lawsuit with former attorney, manager

The city is offering to settle with two former employees who filed a complaint against it and two council members.

At its Tuesday, June 22, meeting, City Council unanimously approved monetary offers for former City Attorney Steve Morris and former City Manager Al Noyola in their case accusing the city, Mayor Kiernan McManus and Councilwoman Tracy Folda of violating the open meeting law and breaching a covenant of good faith and fair dealing when they were fired in October.

The offer for Morris is $270,000 inclusive of attorney fees, costs, expenses and interest. Noyola’s offer is for $290,000.

Under both settlements, the city would waive all rights to seek reimbursement of the $81,888.42 in attorney fees it was awarded May 8 by Nevada District Court Judge Jessica K. Peterson.

Additionally, these offers are considered compromise settlements and if Morris and Noyola accept them, all their claims and requested damages against the city will be dismissed and their appeals will be dismissed with prejudice.

Attorney Griffith Hayes, who helped draft the offers with the Bailey Kennedy law firm, said they were “unilateral monetary” offers with “specific terms and conditions” and if accepted, all the claims between the parties in the lawsuit would be resolved.

“Once the offers are served, the plaintiffs have 14 days to accept them,” he said. “If they do not accept them and then they end up obtaining a judgment that is less favorable than the dollar amount in the offers, there are certain penalties that apply through the statutes. One of the penalties is that the city can recover costs and expenses incurred after the offers were served.”

Morris and Noyola have not received any severance pay since they were fired.

Noyola’s payout would have been $234,613.97, and Morris’ payout would be $259,458.15. Both the amounts were outlined in their contracts.

The claims filed by Morris and Noyola stem from a complaint alleging that a special meeting scheduled for Aug. 6 to discuss firing them was because they substantiated allegations against McManus. They also said they did not receive proper notice of the Oct. 13 meeting to discuss their firing.

Folda was the only council member to comment on the offers during Tuesday’s meeting.

“Next month will be nearly a year since I added the item on the agenda to review the employment of the former city attorney and city manager,” she said. “Those individuals decided to take matters to the court on multiple occasions since that time. Statements have been made on social media and in the paper in defense of their actions, but at the end of the day the court has ruled in the city’s favor every time we have appeared to date.”

Folda said it was her opinion that Morris and Noyola “would only make things worse for themselves by continuing to drag this on.”

“The city is offering a very generous settlement and has acted in good faith to put the matter to rest,” she said. “The city has and will continue to defend itself.”

Morris’ attorney, Richard Gordon of Snell &Wilmer LLP, said the offers were a step in the right direction but didn’t take into account other damages his client suffered.

Jeffrey Barr, an attorney with Armstrong Teasdale LLP who is representing Noyola, is out of the office until today, June 24, and was unable to respond to a request for comment.

Peterson recently stayed all the claims in the district court case until the Nevada Supreme Court decides on the appeals. There is a hearing scheduled for July 13 to reconsider the amount of fees awarded to the city. It was requested by the city and originally scheduled for June 29.

Contact reporter Celia Shortt Goodyear at cgoodyear@bouldercityreview.com or at 702-586-9401. Follow her on Twitter @csgoodyear.

MOST READ
LISTEN TO THE TOP FIVE HERE
THE LATEST
Boulder City woman scammed out of $250K

Imagine being the victim of fraud that nearly drained your life savings. But instead of that money being stolen by a thief or online scam artist, it was at the hands of a trusted friend.

NDW invites all to learn more about bighorn

For several years now, the Nevada Department of Wildlife has been on hand at Hemenway Park in the summer to answer questions and talk about Boulder City’s unofficial mascots.

Police blotter

More fun at the Backstop

BC swimmers part of history

Last Thursday, dozens of Boulder City kids participated in the World’s Largest Swimming Lesson, which is held worldwide with more than 400,000 participants in 56 countries. Boulder City has participated in this event for several years.

City, owners differ on motel district

The potential creation of a historic motel district for eight properties in town hit a roadblock last week. The potential project went from the front of the Boulder City Historic Preservation Commission’s stove to the back burner, at least for now.

The Nevada manufacturer behind every crewed NASA mission since 1968

More than half a century after its founding, the family-owned company remains distinctly American. Its pens are manufactured in Boulder City, displayed in New York’s Museum of Modern Art as examples of industrial design and have appeared in pop culture, including the “Seinfeld” episode “The Pen.”

National designation sought for hangar

It’s a small piece of Boulder City history that while out of sight, isn’t necessarily out of mind.

Henderson mulls data center pause

As cities and counties consider moratoriums, the stage is now set for a larger battle in Carson City.

3-sport standout Jenas-Keogh named Athlete of the Year

Excelling as a three-sport athlete, Boulder City High School senior Sancha Jenas-Keogh has been named Boulder City Review female athlete of the year.

Zwahlen earns BCR’s top athlete award

Called a generational talent by his head coach, Boulder City High School senior boys volleyball star David Zwahlen has been named Boulder City Review male athlete of the year.