Countywide : Fired Chancellor Sues College District

James S. Kellerman, who lost his $97,000-a-year post as chancellor of the North Orange County Community College District amid allegations of financial misconduct, has sued the district, contending its officials fired him without good cause and ruined his reputation.

Kellerman’s firing in May stemmed from an internal investigation by the board of trustees into allegations that Kellerman “borrowed” money from a district account without authorization and pressured district employees for personal loans. In addition, the district was billed for a $2,000 computer that was installed in his home.

The Orange County district attorney’s office was also investigating allegations that Kellerman accepted all-expense paid trips and other favors from a firm that eventually signed a $1.5-million contract with the district.

In a Superior Court lawsuit, Kellerman, 54, of Fullerton, said the board of trustees has violated its contract with him by firing him and refusing to give him an opportunity to respond to grievances about his performance.

Instead, the lawsuit said, the board used “arbitrary, unfair and dishonest performance evaluations” to justify firing him. Kellerman also contends that the district unfairly denied continuing medical and pension benefits for him and his family.

Kellerman also says two district officials, Chris Loumakis and Otto Lacayo, defamed him by making untrue remarks to newspaper reporters. As a result, he said, his reputation has been so damaged that he cannot find another job.

The lawsuit, filed late Tuesday, seeks unspecified damages, including loss of earnings and punitive damages.

Lacayo declined comment on the lawsuit. Other board members and their attorney could not be reached for comment.