Council Panel Rejects Settlement in Holden Case

A key Los Angeles City Council panel turned down a settlement offer Wednesday from a former council aide who filed a sexual harassment lawsuit against Councilman Nate Holden.

Carla Cavalier, whose lawsuit was dismissed by a judge in 1995 and then allowed to proceed by the California Supreme Court, sought about $900,000 from the city. A Court of Appeal reinstated her case, ruling that she had “more then enough evidence” to proceed with the lawsuit. She has alleged that the councilman inappropriately touched her body and hair and tried to kiss her at a 1991 Christmas party.

Holden has denied all wrongdoing and has said he has nothing “to fear or to hide.” Cavalier’s was one of three sexual harassment charges filed against Holden. One was dropped and a judge ruled in Holden’s favor in the other after a trial.

The cases brought much embarrassment and anger to the City Council and have cost the city more than $1.3 million in legal fees. The city is obligated to pay Holden’s the fees.

The council’s Budget and Finance Committee agreed unanimously to reject the settlement in a closed session Wednesday, City Hall sources said.