Judge dismisses some claims in NIC trustee lawsuit

COEUR d'ALENE — A Kootenai County judge has dismissed most of the claims in a civil lawsuit against three North Idaho College trustees. Legal issues regarding the contracts of the college's former attorney and former interim president, however, remain very much alive.

The civil lawsuit — filed last December by Mike Gridley, former attorney for the city of Coeur d'Alene — accused trustees Greg McKenzie, Todd Banducci and Mike Waggoner of fraud and of violating Idaho's open meeting laws.

In a written decision issued Thursday, Judge Ross D. Pittman agreed to dismiss claims of fraud, unjust enrichment and breach of fiduciary duties, pointing to lack of standing by Gridley or a failure to plead a cause of action where relief can be granted.

Pittman noted that at the time the actions in question occurred, Gridley was not a student at North Idaho College — which means there was no fiduciary relationship between Gridley and the NIC trustees — nor was he a "specially situated" taxpayer with standing to challenge governmental action.

Gridley's lawsuit also challenges the validity of the contract between North Idaho College and attorney Art Macomber, as well as former interim president Greg South.

The claim involving Macomber's contract is based on alleged violations of Idaho's open meeting laws, while the issue with former interim president Greg South's contract is based on an alleged violation of the Idaho Constitution, which prohibits governing boards from incurring unnecessary debts or liabilities without first securing the approval of voters.

Pittman denied NIC's request to dismiss those claims.

"This court finds that Gridley has alleged sufficient facts in support of his claim for open meeting law violations that, if true, could entitle him to the relief requested," Pittman wrote in his decision.

The court also determined that Gridley's allegations could support a finding that the defendants have "incurred indebtedness beyond ordinary and necessarily expenses."

The trustees named in the lawsuit voted to hire Macomber and South in December 2022. Macomber announced in May that he would withdraw as NIC's legal counsel and resign effective Aug. 15.

South has been on paid administrative leave since March, when trustees complied with a court order to bring NIC President Nick Swayne back from paid administrative leave and restore him as the college's president.