Federal Judge Orders Former Rogers Treasurer Hudlow Reinstated

Jerry Hudlow

Jerry Hudlow

Wednesday, April 30, 2014

FAYETTEVILLE -- A federal judge ruled Tuesday that Jerry Hudlow, fired as Rogers' city treasurer and finance director, should get his job back, along with more than $80,000 in attorney fees.

Mayor Greg Hines fired Hudlow on May 12, 2012. A federal jury awarded Hudlow $300,000 in November in the wrongful termination lawsuit.

Hudlow said Tuesday he wouldn't have anything to say until he talks with his attorney.

Hines also refused comment, although Ben Lipscomb, city attorney, provided a prepared statement: "The mayor will reserve comment until he has the opportunity to talk with the city's retained attorney John Everett and the legal staff of the Arkansas Municipal League."

In his complaint, Hudlow argued Hines and the Rogers City Council violated city ordinances and a state statute on firing an appointed employee.

U.S. District Judge Jimm Hendren wrote in his order reinstatement is the proper remedy despite testimony Hudlow and Hines don't trust each other and Hudlow has a strained relationship with employees in his former office. The judge said he doubts a lack of trust between Hudlow and Hines has much to do with Hudlow being able to perform his duties as the city's chief financial officer.

"The court concludes that reinstatement would best serve the goal of making Mr. Hudlow whole, and that it would be neither impracticable nor impossible," Hendren wrote.

Hendren ordered the city to pay Hudlow's attorney, Stephen Lee Wood, $84,697 in attorney fees, $7,937 to compensate him for increased taxes resulting from the lump sum judgment for damages and $164 in pre-judgment interest on lost wages.

Wood argued in a post-trial motion reinstatement is an available remedy to make Hudlow "whole." If reinstatement weren't possible, Hudlow should be paid the difference between what he makes now and what he would have made had he remained treasurer in Rogers.

Hudlow said he makes about $40,000 a year less in his job at the city of Lowell than he made working for Rogers. He also maintained his retirement benefits were impacted.

Hudlow said he was wrongfully terminated because Hines and city officials didn't follow state law, which requires due process regarding termination of appointed employees. A city ordinance states the treasurer can only be removed by a two-thirds vote of the council. A whistleblower claim made by Hudlow was rejected.

Hudlow also said statements made by Hines and Lipscomb injured his reputation and impeded his ability to find employment.

Hendren ruled before the trial the city violated Hudlow's right to due process when he was fired. The jury had to decide how much to award in damages. The jury also found Hudlow suffered emotional distress and damage to his reputation.

The jury awarded Hudlow $107,918 for lost wages and benefits, $55,000 for emotional distress and $150,000 for damage to his reputation. Hudlow asked for more than $800,000 in damages.

Hudlow was hired by former mayor Steve Womack in 2002. Hines, a councilman at the time, was the only member of the council to vote against Hudlow's appointment.

Lowell would be without a finance director if Hudlow returns to his former employer.

"I don't know what's going to happen. Right now, I don't want to make any assumptions regarding what happens next. It's out of my hands," said Mayor Eldon Long.

"I do want to say, while surprised by the judge's decision, I'm glad it brings some level of community vindication to an extraordinary finance director and co-worker," Long said.

NW News on 04/30/2014