Mercer Island fined over withholding documents in firing case

A federal judge has fined Mercer Island $90,560 for withholding documents from a former city official who claims she was fired in retaliation for challenging sexual harassment in City Hall.

U.S. District Court Judge James Robart ruled the city's failure to provide records to Londi Lindell "constituted a negligent, reckless, wanton or intentional noncompliance" with the state Public Records Act.

Robart wrote in a June 26 order that the city didn't turn over records related to Lindell's firing until the judge threatened to hold the city in contempt of court. Lindell worked for the city for eight years, first as city attorney and later as deputy city manager. She was fired in 2008.

Lindell reached a settlement with the city last month on her claims that she was a victim of sexual harassment and was fired in an illegal act of retaliation.

City Attorney Katie Knight said both sides are under instructions from the judge not to discuss terms of the settlement, but that it will become a public record when it is finalized.

On the issue of withholding documents, the judge said: The city resisted providing records dealing with a disciplinary matter related to Lindell's firing, claiming they were protected by attorney-client privilege, but failing to disclose an email that said the City Council had formally waived that privilege. (The city denied it waived privilege, noting the documents weren't made public.)

The documents dealt with a disciplinary case in which Lindell recommended the city manager issue a written reprimand to a maintenance employee. The employee commented,: "What, no more boobies?" when workers were being counseled on appropriate workplace conduct after some male workers were seen watching a video of animal sex.

City Manager Rich Conrad tore up the reprimand after the employee's wife and Conrad's friend, Human Resources Director Kryss Segle, threatened to resign if the employee was disciplined.

Bob Sterbank, city attorney at the time, warned Conrad in a memo that his handling of the matter could expose the city to claims that it tolerated sexual harassment. Marcella Reed, an investigator later hired by the city, found Conrad's behavior could bring claims of gender discrimination, sexual harassment and/or a hostile work environment.

The city refused to provide Lindell a copy of Sterbank's memo or Reed's investigative report until ordered to do so by the court. Robart has ordered the city to pay $75 for each of the 868 days it withheld documents related to the disciplinary matter.

The judge imposed lesser fines for the city's failure to provide documents on other subjects, and ordered it to pay reasonable attorney's costs.

Because of the pending legal settlement, the court won't rule on Lindell's claims of retaliation and sexual harassment

Mercer Island paid a $90,000 settlement to an employee who left the city after Segle failed to investigate or report her 2003 complaint that Conrad harassed her. Then-Mayor Alan Merkle suspended Conrad for a week.

Sterbank, the former city attorney, left the city in 2008 with a $137,500 settlement after a dispute over his memo in which he had said the city manager's actions were creating liability for Mercer Island.

Mayor Jim Pearman this week praised Conrad as "probably one of the best city managers in the state."

"To have one employee who is upset with the city try to paint a picture that we're anything but an incredibly well-managed, professional city is just absolutely erroneous. It's not here," Pearman said.

Keith Ervin: 206-464-2105 or kervin@seattletimes.com