Rogers' Lipscomb resigns, signs settlement documents

Ben Lipscomb
Ben Lipscomb

ROGERS -- City Attorney Ben Lipscomb resigned Thursday after he received a $253,222 check and signed a settlement that resolves a U.S. District Court complaint alleging his constitutional rights were violated when the City Council transferred most of his duties to a staff attorney who answers to the mayor.

U.S. Magistrate Judge Erin Setser signed an order Thursday dismissing the lawsuit.

Lipscomb declined to comment Thursday other than to say, "I look forward to the next chapter in my life."

Settlement documents show Lipscomb, the elected city attorney for 24 years, agreed to never again run for public office in Rogers. In addition, he agreed to never again use an ID badge identifying himself as city prosecutor, something he was accused of doing at a public event last summer to gain access to a VIP area.

The settlement said Lipscomb may not use the Freedom of Information Act to "harass" city officials. In addition, Lipscomb's wife, Lauri, must drop a health privacy act complaint against the city.

Mayor Greg Hines said Lipscomb received the check for $253,222 about noon Thursday. City officials agreed to a settlement of $390,000 and issued Lipscomb a check Wednesday withholding 39 percent in federal taxes. After Lipscomb and his attorney objected to the withholding, the city agreed to withhold about 25 percent of federal taxes, Hines said.

The final check also deducts state taxes and other mandatory withholdings.

All parties, including city officials, Lipscomb and his wife, agreed not to disparage other parties in the settlement, according to the documents obtained late Thursday.

City Council members previously disputed Lipscomb's belief his city attorney duties were taken away as punishment. Three aldermen signed affidavits as part of Lipscomb's federal lawsuit stating that Lipscomb suggested the changes.

The council assigned duties such as handling civil litigation and providing advice to the council and mayor to a deputy of Lipscomb's. Afterward, Lipscomb continued only to prosecute city code violations.

Lipscomb's settlement resolved more than just the lawsuit, Hines said.

"We were faced with some varying issues and obstacles," Hines said. "At the end of the day the best resolution for us and Mr. Lipscomb was to seek the settlement that we came to."

Tension between Lipscomb and city officials seemed to escalate after an investigation into a complaint that Lipscomb used his city identification to enter a VIP tent during a concert at the Walmart Arkansas Music Pavilion in Rogers last summer.

A Springdale officer working security said Lipscomb showed a badge and she believed he was a law enforcement officer. Marc McCune of Crawford County, serving as special prosecutor, determined there was no reason to file a criminal complaint against Lipscomb for impersonating a law enforcement officer.

The settlement documents appear to refer back to the VIP tent incident.

"Lipscomb agrees not to use his prosecutor's badge," the settlement reads.

In another complaint investigated, a city employee claimed Lipscomb offered Xanax to him. William Horton, an attorney, also filed a complaint against Lipscomb for sending him "harassing" email about a district court case. No action was taken in either case.

More recently, Hines and Lipscomb had a dispute over historic bricks Lipscomb had "taken," from the city, said Justin Eichmann, an attorney representing Rogers in the federal case. He said Lipscomb had plans to make planters for his house out of the bricks.

The bricks are referred to in the settlement.

"The city will deliver pallets to Mr. Lipscomb's home," the document states. "Mr. Lipscomb will load the bricks on to the pallets. Mr. Lipscomb will then deliver the pallets & bricks to the City of Rogers."

The settlement payment is the city's second to a top city official in the past eight months. The city paid the city's former finance director, Jerry Hudlow, a settlement of $630,000 in May. Hudlow sued in U.S. District Court after he was fired and was awarded restitution and job reinstatement. Hudlow now works as Lowell's finance director.

Hines said paying the settlement was less costly than paying the cost of employing Lipscomb through his term in December 2016.

The city estimated it could cost $379,968 to continue to employ Lipscomb through the end of his term. This includes $310,101 of salary for nearly two years, sick and vacation time, and costs associated with operating Lipscomb's office.

The cost of settling will be $403,002 for the city, Hines said. This includes $13,002 that the city pays in taxes on the money. The Arkansas Municipal League will pay $53,927 of the settlement, leaving the city to pay $349,074, Hines said.

Hines said he plans to propose making the position a ceremonial one in the future. The person filling the position could receive a small stipend to offer services to the city, he said.

In the meantime, the position will be filled by appointment, Hines said. Unless a change is made, the position will be up for election in November 2016.

NW News on 01/30/2015

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