Novato settles former lieutenant's lawsuit for $600K [The Marin Independent Journal, Novato, Calif.]

Mar. 21—Novato has agreed to a $600,000 settlement with a former police lieutenant who claimed workplace retaliation prompted him to retire prematurely.

John McCarthy sued the city in 2020, saying he was subjected to retribution by a former chief after raising concerns about his alleged romantic relationship with a subordinate.

McCarthy also alleged he faced retaliation over his handling of discrimination complaints by two staff members. McCarthy, rather than defusing the controversies, angered superiors by investigating the complaints and finding they had merit, according to his lawsuit.

Both of the complainants sued. An officer who claimed anti-gay bias received a $300,000 settlement, while a sergeant who claimed gender bias got a $75,000 settlement.

McCarthy's lawsuit says the retaliatory pressure made his job intolerable and compelled him to retire two years earlier than he planned, reducing his retirement package. McCarthy had spent 29 years at the department.

The lawsuit demanded retroactive benefit payments, pension credits and retirement contributions with interest. McCarthy also sought damages for emotional distress.

The city denied the allegations and filed motion asking a judge to dismiss the lawsuit, saying McCarthy missed the deadline to pursue administrative remedies before suing. Marin County Superior Court Judge Stephen Freccero denied the motion last year.

The city admits no wrongdoing in the confidential settlement, which the Independent Journal obtained through the California Public Records Act.

The $600,000 payment includes $356,698.01 for McCarthy's emotional distress claim and $35,000 for alleged lost wages. The remainder, $208,301.99, is for McCarthy's lawyer, Jon King.

The Novato City Council approved the settlement in December, and the court dismissed the case on March 3.

"The city has always been and remains committed to an inclusive, discriminatory-free workplace with a culture that respects all of our employees and those we serve," said Jessica Deakyne, assistant city manager. "As such, there has been no determination on the merits of the action but, in order to avoid additional cost and the uncertainty of litigation, the parties agreed via settlement to resolve any and all claims."

Deakyne said the city paid part of the settlement, and insurance covered the rest.

"In matters like these, the city carries additional insurance and participates in an insurance pool," she said. "The city's total exposure for the settlement agreement was limited to $250,000 with the remaining money coming from the city's insurance pool."

The city's annual budget for the police department is about $17 million.

McCarthy could not be reached for comment on the settlement, and his lawyer said he could not discuss it.

After leaving Novato, McCarthy took a law enforcement job in Sonoma County, where he lives. He receives a monthly pension of $11,616.92 for his tenure in Novato, according to the California Public Employees' Retirement System.

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