Liability insurance carrier calls out Carthage City Council for firing practices

Oct. 28—CARTHAGE, Mo. — The Carthage City Council has been called out by its insurance provider for its hiring and firing practices in the wake of the firing of former City Administrator Greg Dagnan in May.

Midwest Public Risk, a not-for-profit insurance pool, said in a letter to the city earlier this month that it recommended that the city "immediately adopt a formal policy of obtaining legal advice prior to making employment practice decisions, especially terminations by the council."

Michael Sindel, president and CEO of Midwest Public Risk, said the city is a member of the risk pool for both liability and property coverage. In the letter, he said the city could be subject to sanctions, "which may include a deductible increase or even termination of your membership in Midwest Public Risk. Our goal is to ensure that all members are adequately managing risks, as this benefits both the city and the broader membership."

"They've had property with us for a long time, and they've added liability maybe five to seven years ago," Sindel said in an interview Monday with The Joplin Globe. "Since we have open claims, we're not at liberty to speak more specifically on that. For us, it's critical that members follow the risk management services that we provide. The concept is trying to keep individual members as well as the pool strong, and financials is part of that, so we're just trying to make sure they're following the loss-control recommendations that we put in place as part of the pool."

The letter recommended the city use Midwest Public Risk's employment practices hotline, which will connect them with Matt Gist, an attorney who specializes in employment practice law.

The letter also cites litigation between the city and former City Administrator Greg Dagnan, who was fired by the council as its first action of business after five new members were elected in the April 2 municipal election.

Mayor Dan Rife has disagreed with the decision of the council and blocked Dagnan's firing until the end of May when Rife's own attorney, Christopher Thornton, told Rife the city charter language allowed the council to fire the city administrator without the mayor's consent.

Rife could not be reached for comment. Alan Snow, mayor pro tem, who voted to fire Dagnan, said he would not comment on the letter.

Dagnan sued the council, all its individual members and the political action committee Carthage Citizens United on May 17, claiming unlawful retaliation and termination after he said he reported unlawful conduct of fellow city employees and violations of the Missouri Sunshine Law to the council.

"MPR Missouri expects the city to follow Matt's advice and to minimize risk/claims by following proper procedures for employment decisions," the letter said. "This recommendation will extend for the duration of the Dagnan claim and for at least 12 months following that claim's final resolution. At that point, MPR will review whether to extend this recommendation."

Dagnan's lawsuit against the city is pending.

Lawrence County Judge David Cole held a hearing Aug. 22 in which he dismissed four of five counts in Dagnan's suit but allowed Dagnan's attorney time to file an amended complaint.

That amended complaint was filed Oct. 1. It restated three claims that were initially dismissed by Cole, including that Dagnan was being punished without just cause by the council for reporting unlawful activity by other city employees, and alleged defamation and tortious interference with contract.

Attorneys for the city and for Carthage Citizens United have filed motions to dismiss Dagnan's claims. No hearing has been set for arguments on the motions made by both sides.

The council has also been attempting to impeach Rife, and a hearing is scheduled for 3 p.m. Tuesday.

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