City settles suit with attorney

Deirdre Newman

City leaders settled a lawsuit with City Atty. Jerry Scheer on Monday

that will pay the beleaguered attorney $750,000 and prompt his

retirement.

Scheer filed the lawsuit against the city, four present and former

council members and a deputy city attorney in September. The suit

contained 16 complaints for damages including violation of free

speech and due process; unlawful harassment based on age and

disability and violation of the Brown Act open meeting law.

“It’s a lot of money,” said Mayor Gary Monahan. “But it was a

business decision that we looked at [along with] the months of trial

and amount of defendants and depositions and attorney fees. We felt

this was the most economical and in the best interest of the city to

settle at this point.”

Dan Stormer, who represents Scheer, said his client is pleased

with the settlement.

“Jerry was very proud of his service with the city and this allows

everybody to put this to rest,” Stormer said.

Scheer, 64, will retire once the agreement becomes final.

The lawsuit is based on a series of events starting in July 2001

when Senior Deputy City Atty. Marianne Milligan -- then going by the

name Marianne Reger -- filed a written complaint against Scheer

containing a number of accusations. Scheer was eventually cleared of

the allegations by an independent counsel and independent

investigator in April 2002.

But in September 2002, Scheer was placed on administrative leave

pending an investigation. The council decided the matter in a closed

session, without Scheer present and did not let him ask to have

grievances against him discussed in an open session. That meeting was

deemed a violation of the Brown Act -- the state’s open meeting law

-- by Acting City Atty. Tom Wood.

Also that month, the council initiated its own internal

investigation and financial audit of the Office of the City Attorney.

Councilwoman Libby Cowan and former Councilwoman Karen Robinson were

in charge of the investigation and were named in the lawsuit, along

with Monahan and former Councilwoman Linda Dixon.

On Oct. 4, 2002, the council voted, again in closed session, to

reinstate Scheer. He returned to work Oct. 7 against his doctor’s

orders, since the city’s treatment had created severe emotional

distress, the lawsuit claimed.

Scheer returned to work part-time but could not complete his

responsibilities because he was unable to log onto his computer, the

lawsuit stated. The computer division had also downloaded everything

from his computer while he was suspended, Scheer contended.

Later in October, Scheer received a letter from the city that he

had to work full-time or resign. Scheer chose to take sick leave on

Oct. 21. The council approved another extension of his leave of

absence until Nov. 16.

Monahan said he didn’t feel the city was guilty of violating the

Brown Act in its dealings with Scheer.

“I don’t see anything wrong with our procedures at this point,”

Monahan said. “This was a mediated settlement, not a finding of

wrongness on either side.”

The initial claim charged that Scheer suffered losses in excess of

$5 million. Stormer said he asked for the highest amount he thought

he could obtain just in case the lawsuit went to trial.

Acting City Atty. Tom Wood will remain in that position, Monahan

said. City leaders are eagerly anticipating an outside review of the

city attorney’s office. Once that is complete, the City Council will

consider the review’s recommendations.

* DEIRDRE NEWMAN covers Costa Mesa and may be reached at (949)

574-4221 or by e-mail at [email protected].