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Former Neosho city manager Jan Blase’s wrongful termination lawsuit against the city has been tossed out of federal court.
However, a breach of contract suit may still be pending.
On Monday, U.S. Magistrate Judge John Maughmer, of the U.S. District Court for the Western District of Missouri granted a motion for summary judgment requesting that the court find in favor of the city in the civil case prior to it going to trial, which was scheduled for Nov. 14 in Springfield.
Blase was fired as Neosho city manager in February 2010. This was after his admission a few months earlier that he had borrowed from restricted accounts to pay city bills and make payroll, as the general revenue fund and reserves were both depleted — something he had failed to notify council of for months. Blase was officially reprimanded by the city council for mismanagement of finances, and in late January of that year the council voted to begin the process of removing him from office. Blase was officially terminated one month later.
In his lawsuit, Blase claims denial of his due process rights under the 14th Amendment, wrongful termination, contractual violations and, now, possibly breach of contract. He seeks from the city lost wages, back pay, front pay, lost benefits for one year, severance pay for nine months and compensatory damages “in an appropriate amount” for an alleged violation of his Constitutional rights and for his “pain, suffering, emotional distress, damage to reputation and humiliation” among other relief.
In his order, Maughmer upheld the defense argument that there is no dispute of material fact and that the city is entitled to both sovereign immunity and to a judgment as a matter of law, which means the opposing legal party lacks enough evidence to support its case.
The judge also held that Blase was an at-will employee of Neosho and could be fired without even being given a reason under Missouri law. At any rate, Blase failed to prove an absence of justification for his termination, according to the court order. Blase was separately convicted in December 2010 on criminal charges of official misconduct. This charge specifically had to do with a $204,666 transfer into the city’s general revenue funds from the hotel / motel tax fund, which was pointedly earmarked in the ballot language to solely promote tourism.
Blase also admitted using up all $895,100 of a State Transportation Assistance Revolving (STAR) loan funds that had been specifically designated for building airport hangers. Instead, he spent it to keep the general revenue fund afloat and kept that fact from the city council.
Former Neosho city manager Jan Blase’s wrongful termination lawsuit against the city has been tossed out of federal court.
However, a breach of contract suit may still be pending.
On Monday, U.S. Magistrate Judge John Maughmer, of the U.S. District Court for the Western District of Missouri granted a motion for summary judgment requesting that the court find in favor of the city in the civil case prior to it going to trial, which was scheduled for Nov. 14 in Springfield.
Blase was fired as Neosho city manager in February 2010. This was after his admission a few months earlier that he had borrowed from restricted accounts to pay city bills and make payroll, as the general revenue fund and reserves were both depleted — something he had failed to notify council of for months. Blase was officially reprimanded by the city council for mismanagement of finances, and in late January of that year the council voted to begin the process of removing him from office. Blase was officially terminated one month later.
In his lawsuit, Blase claims denial of his due process rights under the 14th Amendment, wrongful termination, contractual violations and, now, possibly breach of contract. He seeks from the city lost wages, back pay, front pay, lost benefits for one year, severance pay for nine months and compensatory damages “in an appropriate amount” for an alleged violation of his Constitutional rights and for his “pain, suffering, emotional distress, damage to reputation and humiliation” among other relief.
In his order, Maughmer upheld the defense argument that there is no dispute of material fact and that the city is entitled to both sovereign immunity and to a judgment as a matter of law, which means the opposing legal party lacks enough evidence to support its case.
The judge also held that Blase was an at-will employee of Neosho and could be fired without even being given a reason under Missouri law. At any rate, Blase failed to prove an absence of justification for his termination, according to the court order. Blase was separately convicted in December 2010 on criminal charges of official misconduct. This charge specifically had to do with a $204,666 transfer into the city’s general revenue funds from the hotel / motel tax fund, which was pointedly earmarked in the ballot language to solely promote tourism.
Blase also admitted using up all $895,100 of a State Transportation Assistance Revolving (STAR) loan funds that had been specifically designated for building airport hangers. Instead, he spent it to keep the general revenue fund afloat and kept that fact from the city council.
Other funds illegally borrowed from were the Tax Increment Financing (TIF) fund, the economic development sales tax fund, the water and sewer fund, the street fund and the senior center sales tax fund.
In its explanation to begin the process of removing Blase from office, the council only mentioned malfeasance connected to illegal use of the STAR loan monies, which was the only transfer that had been admitted to or discovered up to that time. The council also listed as reasons for Blase’s removal the fact that he had failed to communicate with the city council and had also failed to inform the council that the city’s revenues weren’t going to cover its expenses. Neosho was $1,042,656 in the red at the end of that fiscal year. Its cash balance was only $1,892.
In Monday’s order, the federal district court did — “with great hesitance” — grant Blase permission to file a complaint of breach of contract of employment agreement, so long as he does so by Friday. Blase’s attorneys had asked leave to file that complaint after the city’s attorney’s filed the motion for a summary judgement in July.
Neither Blase’s legal counsel, Daniel Whitworth, nor the city’s, Jason Coatney, could be reached by phone at their respective offices Wednesday.
A telephone conference for both parties’ attorneys is scheduled for 10 a.m. Friday to discuss how the case will proceed.
