Official’s Slander Case Set to Begin

A defamation lawsuit filed by Oxnard’s former finance director, who says he was slandered by the city manager after questioning the profitability of a municipal golf course project, is scheduled to go to trial today in federal court.

Phillip Molina, 54, sued the city and its top administrator after being fired two years ago.

Molina says he lost his job after refusing to make the River Ridge golf course look healthy on paper at a time when the city was considering building a second golf course, River Ridge West. In court papers, Molina alleges that two council members wanted him to “cook the books” to delete mention of debt payments on the first River Ridge course. He also says City Manager Ed Sotelo slandered him in comments to a former councilwoman and the media.

Molina sued for wrongful termination, slander and three other causes of action. But U.S. District Judge Christina A. Snyder threw out all but the slander claim earlier this year.

Nevertheless, Molina, an accountant who says his professional reputation is at stake, is pushing ahead with the case.

His legal team has subpoenaed numerous current and former city employees, as well as Mayor Manuel Lopez and Councilmen Tom Holden, John Zaragoza and Dean Maulhardt. They are expected to testify this week.

Beverly Hills attorney Edward Lear, who is representing Molina, said that although most of the causes of actions were dismissed, the evidence to be presented remains the same.

“Any concept that the case has been whittled down is inaccurate,” he said.

Lear said city officials claimed that Molina, who was working on the River Ridge West deal, was not competent. Lear intends to show that he was. As a result, the jury will hear about the disputed River Ridge finances and whether it made economic sense for the city to pursue a second golf course as part of a 416-home development.

River Ridge was built in 1984; River Ridge West has been approved but construction has yet to begin.

In the end, Lear said, the jury will be asked to decide whether Sotelo’s remarks about Molina were false and defamatory.

Molina, now unemployed and living in Oxnard, plans to testify about the events leading up to his firing. He worked for the city for two years.

Molina is seeking more than $1 million in damages. His trial in U.S. District Court in Los Angeles is expected to last about six days.

Although both sides have engaged in settlement talks, attorneys said it is doubtful the case will be resolved out of court.

“My personal prediction is that the case will be tried,” said City Atty. Gary Gillig, who believes Oxnard has a strong case.

Molina says Sotelo defamed him on two occasions, Gillig said, once in a conversation with former Councilwoman Dorothy Maron and later in a radio interview. But the city’s position is that those statements were either valid opinions or facts, not slanderous remarks.

Sotelo will be a main witness for the defense, Gillig said. The city also plans to call other city employees to testify.