Cypress withholds records from TimesOC related to city manager allegations
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In the aftermath of “unlawful acts of misconduct” allegations made against Cypress City Manager Peter Grant, the city is refusing to turn over related records to TimesOC.
Since former Public Works Director Doug Dancs first made the accusation while calling for Grant’s firing during the April 28 Cypress City Council meeting, concerned residents and council members have pushed for more transparency.
On May 15, TimesOC filed a public records request seeking documents detailing allegations of misconduct or harassment involving Grant and Dancs.
The request also asked for invoices from the Los Angeles-based Liebert Cassidy Whitmore firm, as an attorney with the firm signed off on Dancs’ $183,000 separation agreement. The city’s payment register also shows nearly $105,000 in fees paid to the firm for legal services dating back to May 2024.
Doug Dancs, a former Cypress public works director, called on Cypress City Manager Peter Grant to be fired during Monday’s City Council meeting where Grant was honored for his service.
It remains unclear if the payments were related to any human resources issue involving Dancs and Grant.
Either way, Cypress cited attorney-client privilege first and foremost in withholding all responsive records — including invoices — from disclosure.
“Any invoices or related records maintained by the city regarding [the firm’s] advice regarding any workplace investigations are exempt from disclosure,” City Clerk Alisha Farnell wrote in an emailed response to TimesOC’s public records request. “These invoices contain descriptions of confidential legal services and matters, and their disclosure would reveal privileged attorney-client communications and legal strategy.”
David Loy, executive director of the First Amendment Coalition, said that Cypress’ exemptions raised questions on both sides.
He pointed to a case in Petaluma were an appellate court eventually ruled that an investigative report into a woman firefighter’s claims of sexual harassment and discrimination by an outside firm was privileged.
“On the right facts, privilege can potentially apply to outside counsel doing investigation, depending on the situation,” Loy said. “It’s very fact-sensitive.”
With regard to withheld invoices, Loy turned to a California Supreme Court ruling in a case involving the ACLU’s efforts to obtain invoices from Los Angeles County related to payments made to private law firms in lawsuits against its sheriff’s department.
“The court ruled that invoices are not always privileged, but drew a distinction between open cases and closed cases,” Loy said. “When a matter is active and ongoing, the court held that the invoice, as a whole, is subject to privilege — even the total amount spent. Once a case is closed, the invoices are no longer completely privileged.”
Farnell claimed that the firm is providing “ongoing advice” to Cypress.
The city, she said, would be disclosing the total amount of legal billing by the firm since May 2024 in connection with any workplace investigations. TimesOC already tallied that figure through Cypress’ payment register.
“With respect to invoices, the issue is not whether the law firm is on a permanent retainer, the issue is whether that particular case or matter is done,” Loy said.
All parties signed Dancs’ separation agreement by October. His last day of employment with Cypress was Dec. 31. The city paid him out in January.
To whatever degree privilege is legally applicable to documents related to Dancs’ allegations, Cypress City Council, as the client, would have the authority to waive it.
In a recent high-profile case, Anaheim waived attorney-client privilege in 2023, which cleared the way for the release of a redacted anti-corruption report to its city council and the public.
Cypress Mayor David Burke called a special meeting on May 19 to direct City Atty. Fred Galante to turn over any such documents to the council. The question of waiving attorney-client privilege did not appear on the agenda.
With Councilmember Leo Medrano absent because he was attending a Democratic club meeting at a Cerritos IHOP instead, the council deadlocked 2-2 on the question.
An effort to have Cypress City Atty. Fred Galante turn over any records related to allegations of ‘unlawful acts’ made by former Public Works director Doug Dancs against City Manager Peter Grant was unsuccessful during a special meeting of Cypress City Council.
During the June 9 Cypress City Council meeting, a former council member, Frances Marquez, advocated for the item to be brought back for discussion at a future meeting.
“You need to hand that investigation over to the mayor,” she told Galante. “Everybody in this community is still watching.”
But for the second straight council meeting since the special meeting deadlock, no council member took any action to revive the discussion.
Instead, a review of Grant’s job appeared on the agenda.
Galante reported during the meeting that the City Council discussed the city manager’s performance evaluation and provided direction in closed session.
“No further reportable action was taken,” he said.
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