City Urged to Recoup Holden Defense Costs

Attempting to rectify a controversial and costly episode for the city, Councilman Nate Holden called on the city attorney Wednesday to seek repayment of legal fees spent to fight a 1995 sexual harassment lawsuit filed against him.

A state Court of Appeal last week upheld a lower court ruling that vindicated Holden in the lawsuit, brought by his former receptionist, Marlee Beyda.

As a result of that ruling, Holden said, he believes the city should try to recover court costs and outside attorneys’ fees paid to represent him and four other aides.

The city paid nearly all of the $1.5 million charged by the attorneys in all three cases. The Beyda case, the only one that went to trial, cost the city about $1.3 million.

At the time, city officials were aghast at the large legal tab and the lax oversight by the city of the outside attorneys’ billing. The council authorized a $50,000 audit of the bills.

By seeking repayment from Beyda, Holden said, the city would be sending a message to anyone else who files frivolous lawsuits against the city.

“The city has been looking like milquetoast, giving out settlements, conceding . . . throwing in the towel,” Holden said. “Here’s an opportunity where we have won and [the city] should send a clear message that we will fight to get our money back.”

Beyda alleged, among other things, that Holden engaged in several acts of unwanted sexual conduct toward her, and that he and others in the office made explicit sexual remarks in her presence.

The city first hired the downtown firm of Casterline & Agajanian to represent the councilman and his aides, but the law firm was fired before trial. They were paid $485,310.

The city then hired the Century City firm of Christensen, Miller, Fink, Jacobs, Glaser, Weil & Shapiro. That firm won the suit and got another dismissed on a summary judgment. They were paid about $859,402.

“Nobody should bring this kind of burden to the city and the individual named and then feel free to walk away scot free,” Holden said. “They should not be allowed to get away with that.”

The full council will need to act on Holden’s proposal before the city attorney seeks reimbursement.