Lawsuit costs on the rise [Highlands Today, Sebring, Fla.] - Insurance News | InsuranceNewsNet

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March 15, 2012 Newswires
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Lawsuit costs on the rise [Highlands Today, Sebring, Fla.]

Pallavi Agarwal, Highlands Today, Sebring, Fla.
By Pallavi Agarwal, Highlands Today, Sebring, Fla.
McClatchy-Tribune Information Services

March 15--SEBRING -- Lawyers representing Avon Park in a lawsuit filed by former Police Chief Mike Rowan and an administrative hearing he has requested have run up almost $53,000 in legal fees, but the city's insurance company is paying the majority of the bill, city officials said.

The city's insurance carrier, Public Risk Management, hired Brian Koji, of Allen, Norton & Blue, to represent Avon Park in the lawsuit filed by Rowan, who was first suspended without pay and then fired Oct. 19, 2011.

Public Risk Management is paying the majority of the $43,000 the law company has billed from June 23, 2011 up to Jan. 31, but City Manager Julian Deleon did not know the city's share.

The city is, however, paying City Attorney Gerald Buhr, who is serving as a co-counsel and is representing the city's interests, Deleon said.

The city provided Highlands Today copies of Buhr's bills from January 2011 up to December 2011.

While Buhr's charges were itemized, some were combined with other city business and an exact amount of what the city paid him last year in connection with the Rowan issue is not available, but appears to be roughly $9,000 to $10,000.

Buhr, who represents Saxon, Gilmore, Carraway & Gibbons, in Tampa, charges the city $175 an hour. He also gets paid for mileage and "meals on the road." For a few months, he charged the city $150 an hour.

On May 11, for example, Buhr charged the city $450 for a telephone conference with Rowan's attorney, with Koji, for other email and telephone correspondence and research regarding the "Chief Rowan issue."

On May 17, Buhr had a $675 charge for research regarding "defamation of city," and to finalize notes on the validity of the police chief's contract. The 4.5-hour charge included other city business.

A June 21, $481.25 charge includes references to "review Rowan complaint," a telephone conference with the insurance company and the client, and also includes work done on a bond redemption.

The bulk of the fees, almost $7,000, appear to have been charged in August when an evidentiary hearing had been held in connection with the lawsuit.

Koji provided the following itemized statements: $13,503 from June 23 to Aug. 31; $12,542 from Aug. 22 to Oct 31; and $17,345 from Nov. 1 to Jan. 31.

He charges $200 an hour.

Rowan filed the lawsuit on June 16 after Deleon suspended him with pay on April 19, and stripped him of his pay in June after it came to light that Rowan had investigated Mayor Sharon Schuler, Deputy Mayor Brenda Gray, Administrative Services Director Maria Sutherland, and Sutherland's husband, councilman Parke Sutherland, for alleged illegal activities.

Rowan turned over his findings to the state attorney's office. An investigator for that office later concluded that none of the city officials Rowan investigated had done anything unethical or illegal.

An amended complaint filed by Rowan's attorney, Robert Grizzard II, states that there is no basis for the suspension or termination of Rowan as the city's police chief. The complaint requests a jury trial.

Deleon said Tuesday that no contingency or reserve funds have been used in paying the legal expenses. Through budget amendments, he has reallocated some of the salaries and wages from frozen positions, which will likely be eliminated.

In an earlier Highlands Today report, Parke Sutherland said he saw the expenses as an unfortunate, yet necessary, expense for the benefit of the city.

"As we have seen of late, there is an atmosphere or an expectation, I believe, on the part of the plaintiff that at some stage of the game the city is going to roll over and make some kind or type of settlement."

Sutherland added: "It's unfortunate that we have to spend the money that we have to defend, but I see it as a necessary cost of doing business."

Councilman Paul Miller said Rowan was offered, and then backed out of, two separation packages from the city that would have given him about $100,000.

___

(c)2012 the Highlands Today (Sebring, Fla.)

Visit the Highlands Today (Sebring, Fla.) at www.highlandstoday.com

Distributed by MCT Information Services

Wordcount:  687

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