An insurance policy could cover about half of a $4.26 million jury award this week in a wrongful termination case against Polk County.
Why it matters: It is potentially millions of dollars in unbudgeted costs and comes as the county faces financial hurdles due to new state laws limiting property tax growth.
Catch up quick: The 2021 lawsuit filed by former county HR director Jim Nahas accused the Board of Supervisors of extortion and libel.
- Nahas was terminated earlier that year after county officials said he mishandled a sexual harassment complaint against Supervisor Matt McCoy made by Deputy Administrator Sarah Boese.
Zoom in: McCoy has denied the allegations made against him.
- Boese separately has three ongoing lawsuits against the county that have accumulated more than $260,000 in legal fees: a sexual harassment case filed in 2022, one filed in March alleging a public records violation, and a third filed in May claiming retaliation after she was not chosen for the top administrator role.
State of play: The county’s max liability in the case is $2 million, which is when insurance kicks in and includes legal costs, spokesperson Jon Cahill told Axios.
- The jury verdict includes punitive damages, holding Polk County Supervisors Angela Connolly and Tom Hockensmith personally responsible for $5,000 each in damages. Nahas received a $250,000 award to be paid by former Polk County Administrator John Norris.
Yes, but: An indemnity clause Norris received in a $520,000 settlement after being ousted by supervisors this year means the county is also responsible for covering his portion of the punitive damages…