City Faces $9.5 Million In Legal Claims

A number of looming legal issues threaten to pile on more costs for the fiscally embattled City of Milwaukee. A $7.5 million claim is pending in federal court and two settlements totaling $2.05 million are pending before the council.

Sam Hadaway, who was wrongfully imprisoned for a 1996 crime, is suing the city in federal court for $7.5 million. Hadaway has since been exonerated for a robbery he previously confessed to committing. He alleges his confession, part of a murder investigation, was coerced by Milwaukee Police Department members. The plaintiff has cerebral palsy, epilepsy and brain damage.

On Monday, after meeting in closed session the Judiciary & Legislation Committee unanimously recommended hiring outside counsel Nathan & Kamionski to represent the city in the lawsuit.

The city has been represented by a revolving door of attorneys, including Naomi Gehling, Yolanda McGowan, Todd Farris, Jennifer DeMaster, Nicholas Zales and Robin A. Pederson, since the case was first filed in 2019. Gehling is now pursuing a case against City Attorney Tearman Spencer, while DeMaster and Zales were fired by Spencer. The others are deputy attorneys still with the department.

Nathan & Kamionski would be authorized for up to $30,000 to provide support on the case. The full council will consider the proposal at its May 10 meeting.

Two other settlements encompassing $2 million in payouts are proposed, but have yet to receive council committee review. They were not included on the May 2 Judiciary & Legislation Committee agenda and pulled from the Finance & Personnel Committee’s May 4 agenda. They include:

A Due Process Suit

The City Attorney’s Office is recommending settling the case Hadrian, et al v. City of Milwaukee, which was filed in February 2021, for $900,000. Plaintiffs Jeffery Hadrian, Thomas Flock, Efrain Herrera, Richard Lesniewski, Hattie Nichols, Sandra Poniewaz and Jeffrey Watts allege they were terminated in February 2019 by then-police chief Alfonso Morales without due process. All seven are former sworn officers who worked in civil positions performing background investigations on job applicants after retiring.

A Fire & Police Commission report already determined that Morales and former assistant chief Ray Banks were responsible. Morales previously said he acted on oral advice from Banks, though written performance reports approve the work by the investigators. The lead background investigator said he believed the terminations were personal.

Morales himself won a civil rights settlement with the city in 2021 for due process issues in his termination. Banks, who previously retired, applied to replace Morales, but was not one of the seven finalists.

A Firefighter Suit

Firefighter Karl Kraai, in a class action lawsuit filed in June 2020, alleges that Milwaukee Fire Department members were not properly paid an overtime rate after working more than 204 hours in a 27-day period.

A Common Council file, which does not contain a recommendation letter, suggests the City Attorney’s Office is recommending settling the claim for $1.15 million.

Kraai said the city was paying firefighters time-and-a-half overtime based on their base pay instead of their regular rate, which would include a number of merit bonuses. The suit, filed by attorney Christopher J. MacGillis, estimated that there were between 600 and 700 employees similarly impacted.

Both settlements require council approval.

The council voted to refill the settlements account with $850,000 last month.

Also: Ex Parte Troubles

Not all of the city’s legal issues are financial issues.

A discussion file is pending before the council regarding Spencer’s communication with a judge on a tax lien case.

Spencer initiated a private conversation with Milwaukee County Circuit Court Judge Laura Gramling Perez on the case to disagree with the argument of assistant city attorney Hannah Jahn from his office.

The judge, who ultimately ruled against the city’s motion to reconsider if proper notice was issued on delinquent tax bill due dates, said Spencer “swung by” her courtroom and brought up the case. Known as an ex parte communication, ethics rules prohibit discussing the case without the opposing party’s legal counsel present.

Jahn, when the hearing was properly called, said she was acting on behalf of City Treasurer Spencer Coggs.

A report from Alison Dirr and Dan Bice notes that a number of members of the legal community, including retired judge Jean DiMotto, expressed concern with Spencer’s behavior.

Alderman Michael Murphy is sponsoring the communication file, but it has yet to be scheduled for a hearing.