Governing boards must be aware of any legal actions involving their operations, and when organizations are tax supported, the public should know, as well.
Legal actions may be without merit, but they can indicate poor management on one or several occasions, can cost money even when insurance is involved, and require management’s time.
La Plata County Commissioners have been applying the transparency that other boards should (Herald, June 29). Information about a wrongful termination lawsuit in 2023, that resulted in a payment of $45,000, was included in a meeting board packet and was signed by the board chair. So, too, in 2019 with the same charge and a $125,000 settlement.
Not so of the local fire districts, or Durango School District 9-R.
The Los Pinos Fire Protection District board in 2021 signed a settlement agreement in executive session after a wrongful termination assertion that resulted in a $55,000 payment. And earlier this year, a charge of wrongful termination led to a $125,000 payment that was not publicly voted on by the board.
The Durango Fire Protection District’s chief in 2019 settled a complaint in mediation for $427,500 ($100,000 was not paid by insurance), which apparently was not deemed necessary to be voted on by its board.
A federal judge dismissed a complaint against the Upper Pine River Fire Protection District in 2018, but the district last week was unwilling to discuss if there was any settlement. What the insurance company did was unknown, according to the current chief.
As to 9-R, in March of this year, a student who was burned by boiling water received $350,000. Although shared via email with the board, that event and outcome did not appear in public materials because the amount was within the amount the superintendent is allowed to disburse without board approval, according to the district’s spokesperson.
Which brings up another issue entirely: the spending limits of a public executive. Is $350,000 – which may not even be the ceiling – excessive?
In 9-R’s case, a legal settlement is not in the same category as the approval of an expense for HVAC improvements or a software purchase. The dollar amount may be the same, but the distinction is that a legal action deserves to be publicly noticed.
A lawsuit will almost always involve taxpayer money, reason enough for transparency. Insurance policies almost always include a deductible so that the company is spared small claims and that the insured has a stake in the game. A response also requires an attorney, in house or by contract. Insurance premiums may also increase. All paid for with public funds.
More significant than the dollars, governing boards that are not engaged in legal actions against their organization are abdicating responsibility, and not applying good management.
As said above, look to La Plata County’s transparency. It has it right.
