City of Yachats settles 3-year-old federal lawsuit by its deputy recorder, who will leave her job

By GARRET JAROS/Lincoln Chronicle

YACHATS – The city of Yachats and deputy city recorder Kimmie Jackson have agreed to settle her federal lawsuit alleging racial discrimination and retaliation for $175,000 to avoid the expense and uncertainty of a trial.

Jackson sued the city in May 2023 alleging racial discrimination, retaliation, disability discrimination, and medical leave interference and retaliation and sought unspecified economic and uneconomic damages and attorney fees. Jackson later dropped the medical leave complaint and a federal magistrate in December agreed with the city’s motion to remove the disability discrimination claim.

Under the agreement approved by the magistrate in December and signed by both parties in April, Jackson is to receive the total payout of $175,000 within 20 days of her last day of work June 30, according to court documents.

Part of the settlement insisted upon by the city’s insurer was that Jackson end her employment with the city. She is to receive a neutral reference from the city specifying only her dates of employment and job title.

Jackson and the city also had to agree on joint messages regarding her departure that recognized her value and contributions, which the city council did during its monthly meeting Thursday. In exchange, Jackson must dismiss the civil suit within 10 days of receiving the payment.

The U.S. District Court settlement follows an earlier resolution of related claims in October 2023, when Jackson settled her workers’ compensation claims for $70,000.

“The city is in a really positive place right now,” said city manager Bobbi Price. “We have an excellent workplace culture. We very much appreciate and care for Kimmie and we’re ready to move forward from this. A settlement felt more appropriate than bringing back this old history and dragging everybody through trial. We really just wanted to move forward.”

Jackson began working for the city in July 2011 and has served under a succession of city managers and interim city managers that included Joan Davies beginning in 2016, followed by Shannon Beaucaire, Lee Elliot, Katherine Guenther, Heide Lambert, Rick Sant and now Price.

Magistrate Amy Potter’s decision on the city’s motion for summary judgment was broken down into six parts: Oregon Workers’ Compensation Act’s exclusive remedy provision, Oregon’s tort claims act, statutes of limitation, race discrimination claims, retaliation claims, and disability discrimination claims.

Ultimately, the court denied the city’s motion on two fronts and allowed Jackson to proceed with her claims regarding racial discrimination claims after being passed over twice to act as interim city manager and retaliation claims for removal of her job duties.

Originally there was a second plaintiff, administrative assistant Anita Sites, but she reached an agreement with the city and withdrew from the case. Sites’ portion of the federal lawsuit mirrored allegations made by Jackson around racial discrimination. She worked for two years as a contract employee between September 2019 and June 2021.

In her race discrimination claims, Jackson alleged three specific adverse actions: being passed over to fill in as interim city manager, a reduced salary with denied out-of-class compensation, and being placed on unpaid administrative leave and a work plan by Lambert.

Potter ruled that Jackson presented sufficient facts to make a case for racial discrimination regarding the council’s failure to appoint her as interim city manager. However, summary judgment was granted in favor of the city for all other race-based discrimination claims.

In the retaliation claims, Jackson alleged that Lambert retaliated against her for filing an Oregon Bureau of Labor Industries complaint by stripping her of job duties, denying disability accommodations, and attempting to discipline her. The court allowed the retaliation claim regarding the removal of her job responsibilities to move forward but granted the city’s motion to remove Jackson’s claims of retaliation involving workspace changes and attempted discipline.

While Jackson is stepping away from her job, she will stay on under a special contract to help troubleshoot obstacles and share expertise. She will also contract to cater food for city events.

• Garret Jaros covers the communities of Yachats, Waldport, south Lincoln County and natural resources issues for Lincoln Chronicle and can be reached at [email protected]