Use of Westminster Funds to Cover Judgment Debated

Residents were divided Tuesday night on whether six top city officials should dig into their own pockets rather than taxpayers’ to pay a $570,000 punitive damage award stemming from a civil rights lawsuit brought by a group of former firefighters.

The City Council is considering whether the city should pay the sum on behalf of the officials. City Manager Bill Smith said the group, which includes Mayor Charles V. Smith and Councilman Tony Lam, were acting in the best interests of the city and therefore should not have to pay the damages individually.

The punitive award was announced just three days after the same jury awarded the firefighters $1.9 million in compensatory damages, which will be paid by the city.

About two dozen residents attended a public hearing on the matter Tuesday night. The council is scheduled to vote today at a special 1:15 p.m. meeting.

Those who supported the city paying the jury award said they worried that people would be discouraged from public service if there was a possibility they could be held financially liable.

“Should the City Council not take immediate action in this matter, it would weaken the desire for anyone qualified to serve on any committee, commission, city government position or seek political office knowing they could be sued for large sums of money,” said Stan Hirsch, amid applause from the audience. “We must protect all who serve.”

Fred Wolf added that the jury’s decision “implies that you have some personal agenda in the case and that’s ludicrous. I’m hear to demand that you stand up for yourselves. . . . I know of no one who would run for public office if to do so would put their personal assets at risk.”

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But others said using city funds to cover the punitive judgment would not be fair.

“It is my opinion that we have been misled and misguided and as taxpayers we are being asked to pay millions of dollars for your mistakes,” Carl Whitaker said. “Now you have the guts to ask us to pay your punitive damage as well.”

Smith and Lam, along with Finance Director Brian Mayhew, former Fire Chief John T. DeMonaco Jr., former Assistant City Manager Don Anderson and former Councilman Craig Schweisinger were ordered by a federal jury Sept. 29 to pay the damages for their role in firing or disciplining former city firefighters.

No vote was taken on the issue of paying the punitive awards Tuesday because of a lack of quorum. Councilman Frank Fry Jr. was absent because he is recovering at home from back surgery.

The council had planned to reconvene today at his home for a special meeting but decided Tuesday night to meet instead at City Hall. Fry plans to attend.

In the lawsuit, the firefighters contended that they were fired illegally after a city investigation into suspected payroll fraud. City officials have denied wrongdoing, and the municipal government plans to appeal the case.

In another twist, Smith and Lam could be among the three voting members who decide whether the city pays the punitive awards.

City attorneys have said that Smith and Lam should abstain from the vote because of the conflict of interest in the case. But Councilwoman Charmayne S. Bohman was also found to have a lesser conflict because she was originally named as a defendant in the case, and several former firefighters still have outstanding lawsuits in which she is named.