Council to settle Williams suit for $180K

Wayne Williams, a 12-year employee of the city, sued Shelbyville and city manager Ed Craig for breach of contract and wrongful termination in May 2007.

Craig told the council that he, Mayor Wallace Cartwright, city attorney Ginger Shofner, Craig's attorney, plus council members Kay Rose, Jo Ann Holland, Al Stephenson and Lee Roy Cunningham all attended a meeting with a federal mediator Tuesday to discuss the case.

The agreement would have the city pay Williams $180,000 and also to pay "reasonable attorneys fees," Craig said.

"That would settle the lawsuit," Craig said.

Williams was terminated from his position in May 2006 following action he intended to take in regards to a controversial asphalt plant.

The suit claimed that the termination was "a breach of contract and violations of the plaintiff's due process rights and his First Amendment rights of freedom of speech, expression and association ..."

According to a memo dated May 5, 2006, to the mayor and city council from Craig, he learned that Williams intended to not issue a certificate of occupancy (CO) for a $1.8 million asphalt plant owned by Wright Paving on L. Fisher Road "because of his belief that it should be in an I-3 zone."

The location also contains a site for a proposed rock quarry that was the topic of protests from local residents in 2005.

Craig took Williams' report to the city attorney at the time, the late Tom Nance, and asked that he review the matter.

In the memo to the mayor and council members, Craig stated he took "great issue with Mr. William's characterizations of the events regarding the history of the asphalt plant ..."

"... Regardless of the whose view of history is correct, denial of a certificate of occupancy on the grounds of zoning or permit term at this point would expose the City to serious legal and financial liability," the memo stated.

"Wayne, as the City of Shelbyville's building official, issued the building permit under I-2 zoning; he and his staff conducted the inspections and never advised the Wrights of any issue. The City cannot now say that it won't issue a CO because of a zoning issue or an 'expired' permit, and it is doubtful that it would win a lawsuit if it did."

At the time, Craig said he would provide Williams a copy of the memo and see if he still intended to refuse to issue the certificate of occupancy.

"If that is still his position, I believe I have no other option other than relieving him of his responsibilities," Craig wrote.

On May 8, 2006, Craig personally delivered a letter to Williams informing him of his suspension with pay and the city manager's intent to dismiss him from employment. A pre-termination hearing was to be held on May 10, 2006 in Craig's office.

The letter stated that the proposed dismissal was "based on your actions as the city's building official as they relate to the asphalt plant built by Tommy and Norma Wright."

The letter restated the circumstances surrounding Williams' intended action regarding the Wright plant and that Nance had issued an opinion "stating that this course of action would subject the City to enormous financial liability."

Craig's letter dated May 10, 2006, notifying Williams of his dismissal states that he "presented no evidence or provided no basis for me to change my opinion that your conduct places the city at risk, and therefore you are dismissed from your employment effective immediately."

Williams' suit stated that his actions "did not constitute insubordination nor incompetence. He did nothing to justify a suspension or dismissal."

The suit also claimed the suspension and dismissal "were contrary to the provisions as set out in the employee handbook."

Papers were filed in Bedford County Circuit Court in May 2007, but the case was removed to the Winchester Division of the U.S. District Court's Eastern District of Tennessee by the city due to constitutional issues.