Hearing set for disputed libel settlement

Feb. 27--CLAREMORE --

A state judge has scheduled a March 26 hearing to resolve the mediation dispute in the defamation lawsuit by District Attorney Janice Steidley and two assistants against the sponsors of the unsuccessful citizens' petition for a local grand jury investigation of the DA's office.

District Judge Carlos J. Chappelle issued the order in response to a request by Steidley, Assistant DA David Iski and former Assistant DA Bryce Lair that the court enforce the disputed settlement.

Three defendants in the libel suit -- businessmen Myron Grubowski, and Claremore police officers John Singer and Steve Cox -- challenged the prosecutors account of a recent mediation session that the DAs said included an agreement to pay $25,000 toward their outside legal expenses.

The original amount sought by the prosecutors in the defamation suit was in excess of $500,000 plus attorney fees.

Grubowski filed his response Wednesday, asserting he was not involved with any negotiations with the prosecutors or their outside attorney during the Feb. 8-9 mediation except for a demand his insurance company pay $5,000 toward the plaintiffs legal expenses. He said neither he or his attorney saw the terms of a final agreement.

A fourth defendant, businessman Russell Guilfoyle, released a statement late Wednesday through his attorney, saying a resolution had been reached between his client, and co-defendants Sheriff Scott Walton and Claremore resident Billy D. Jones. The statement said they had been dropped from the libel suit under the agreement.

"There was no agreement reached at the mediation held on Feb. 8 between plaintiffs and any party.," said Thomas Paruolo, attorney for Guilfoyle. "The failure to reach an accord was partly due to Plaintiff Steidley prematurely walking out of the mediation without notice to the mediators or the other parties prior to conclusion of the mediation."

"Notwithstanding, the mediators continued to work towards a resolution and one was subsequently reached. As set forth in the agreement, Guilfoyle's insurance carrier, as a business decision, agreed a minimal amount of money would be paid to Plaintiffs' attorneys."

The prosecutors contended, in a motion seeking court enforcement of the agreement, that Grubowski and Cox reneged on the deal. Steidley and her assistants said Singer was the only defendant who did not agree to the settlement negotiated by mediators Stratton Taylor and state Sen. Sean Burrage at their Claremore law office.

Cox and Singer filed a motion last week contesting the prosecutors' claims and requesting the court award their legal expenses resulting from the disagreement.

Grubowski's motion Wednesday made the same argument and also asked for reimbursement of legal expenses for the cost of challenging the prosecutors motion for court enforcement.

The prosecutors said in their motion that the lawyers for all the petition sponsors, except for Singer, had agreed to the settlement and, in fact, helped write it. But parties to the mediation discussion said the attorney for Sheriff Walton wrote the agreement, providing copies to the other defendants days after mediation ended.

Walton said he was approached by the DAs to settle the parties' differences in the mediation process. He said it was a business decision for the defendants' insurance companies to pay $25,000 toward the prosecutors outside legal expenses in order to avoid further litigation costs.

"The resulting agreement is a resolution to end an expensive court battle, while maintaining the integrity of the claims," Walton said. "I have not changed my position on any of this and given the opportunity would support the grand jury petition again."

The grand jury petition accused the district attorney and her assistants of malfeasance and corruption in office. It was rejected by a state judge on grounds the more than 7,700 voter signatures were obtained on unauthorized forms. The accusations, however, were assigned to the state multicounty grand jury for investigation and finding by Oklahoma's attorney general.

"I anxiously await the findings of the multicounty grand jury," said Walton. "We were successful in bringing the claims to the attention of the Attorney General and the State of Oklahoma. I appreciate the overwhelming support from the community and despite the insurance companies negotiations nothing more has changed."

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