FAYETTEVILLE — A federal jury awarded Jerry Hudlow, former Rogers treasurer, about $312,000 Friday in his wrongful termination case against the city. A whistleblower claim was rejected.
Mayor Greg Hines fired Hudlow on May 14, 2012.
Hudlow sued Hines and the city claiming officials didn’t follow state laws regarding the termination of appointed employees. Hudlow further claimed statements made by Hines and Ben Lipscomb, city attorney, injured his reputation and impeded his ability to find employment.
U.S. District Judge Jimm Hendren ruled before the trial started 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.
Legal Lingo
Verdict
The formal decision or finding made by a jury concerning the questions submitted to it during a trial. A jury is charged with hearing the evidence presented by both sides in a trial, determining the facts of the case, applying the relevant law to the facts, and voting on a final verdict. In civil cases the jury makes a decision in favor of the plaintiff or the defendant, determining liability and the amount of money damages.
Source: thefreedictionary.com
“I’d like to thank the judge and jury,” Hudlow said after the verdicts were read. “The verdict is the verdict, it speaks for itself.”
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.
Hines said he doubts the city will appeal the ruling.
“The city of Rogers is ready to move forward,” Hines said. “I think you have to have respect for the proceeding. We took it to a jury and this was their decision.”
Hines said he still thinks firing Hudlow was the right move.
“The issue of whether he should have been terminated was never challenged here,” Hines said.
The city dodged a bullet on the whistleblower claim. Hudlow contended he was fired in retaliation for complaining to the mayor and an Arkansas Municipal League lawyer about Lipscomb’s expense claims then telling auditors to scrutinize them.
Hines said he was watching that one closely.
“Certainly from the standpoint of the truth, to prevail on that would have indicated there was some validity to his claims of untruthfulness on the part of the city,” Hines said.
Hudlow’s attorney, Stephen Wood, said no decision has been reached on whether Hudlow will seek reinstatement.
Hudlow, 61, was hired by then-Mayor Steve Womack in 2002. Hines, a councilman at the time, was the only member of the council to vote against Hudlow’s appointment.
Hudlow claimed he was wrongfully terminated because Hines and city officials didn’t follow state law requires due process regarding termination of appointed employees. A city ordinance says the treasurer can only be removed by a two-thirds vote of the council.
Hendren agreed with Hudlow. The judge granted Hudlow’s pretrial motion for summary judgment against the city and Hines, in his official capacity, saying the mayor didn’t follow the city’s termination procedures when he fired Hudlow without due process, including a vote by the City Council and a timely opportunity for a name-clearing hearing.
The judge ruled Hudlow wasn’t entitled to seek punitive damages against the city or Hines in his personal capacity.
Hudlow claimed the firing in May 2012 cost him more than $100,000 in wages and benefits and ruined his reputation in the community. He also sought damages for humiliation, pain and emotional distress.
Hudlow contended the mayor fabricated reasons to fire him after he raised concerns about Lipscomb’s expense claims. Hudlow contended Lipscomb wasn’t turning in the necessary documentation with claims.
Hudlow, who was hired in Lowell about six months after he was fired, claimed he was dragged through the muck by the media after Hines released a list of reasons for his firing that included insubordination, intimidation, disrespect, lack of decorum, failure in ethics, violation of state statute, lying, bullying and information fabrication.
Wood told jurors the list was full of distortions, half-truths and exaggeration.