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    Mark Lawson v. City of Sparks complaint

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    Mark Lawson v. City of Sparks complaint

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    Mark Lawson v. City of Sparks complaint

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
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    Download as pdf
    649 views40 pages

    Mark Lawson v. City of Sparks Complaint

    Uploaded by

    Ben Margiott
    Mark Lawson v. City of Sparks complaint

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    © All Rights Reserved
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    EIEFED MAR . nas eG ap Pee eran pa see ee Coty neat ffl 5371 Kietake Lane Reno, Nevada 89511 Tel: (775) 853-8745 Fax: (775) 201-9611 wguinasso(ahutchlegalcom rsam@nutchlegalcom bs | Atiorneys for Plaisff Mark Lawson IN THE SECOND JUDICIAL DISTRICT COURT OF THE STATE OF NEVADA IN AND FOR THE COUNTY OF WASHOE MARK LAWSON, Plait, . Case No, ‘THE CITY OF SPARKS, a Nevada Dept No, Incorporated City;and NEIL C. KRUTZ, an Individual, Defindants, COMPLAINT (JURY TRIAL DEMANDED EXEMPT FROM ARBITRATION) Plaintiff MARK LAWSON, by and through the undersigned counsel of Hutchison & Steffen, PLLC, hereby files this complaint against THE CITY OF SPARKS and its City Manager NEIL C. KRUTZ és follows: ‘THE PARTIES 1, Plaintiff Mark Lawson (*Mr. Lawson?) is @ Nevada citizen, His address is 11576 Anthem Dive, Sparks, Nevada 89441. Lof 13 2. _Delindant City of Sparks (the “City” isan incorporated city located in Washoe County, Nevada. Rs address is 431 Prater Way, Sparks, Nevada 89431 3. Defendant Neil C. Kratz (*Me. Kratz) isthe City Manager of th City of Sparks and atall relevant times was citizen of Nevada. His fice i located at 431 Prater Way, Sparks, Nevada 89431 JURISDICTION AND VENUE 4. Jurisdiction and venue are proper in the Second Judicial Distriet Court forthe State of Nevada becuse all events set forth herein arose in Washoe County, Nevada. ALLEGATIONS COMMON TO ALL CLAIMS 5, On November 28, 202, the City and Me, Lawson entered an “Employment ‘Agreement’ (he “Agreement” whereby Me, Lawson would serve asthe Chief ofthe Sparks Fire Department intl June 30, 2024, See Exhibit 1, at 2 (Employment Agreement Dated November 21, 2022). 6. Under the plan language ofthe Agreement, Mr. Lawson was entitled toa salary of $200,000 per insurance, disability insurance, and life insurance. See Exhibit 1, at and benefits including annual leave, sick leave, personal leave, health 7. Upon belief and knowledge, Mr. Krutz was aware of all provisions of the Agreement and had a duty to execute its terms in good faith 8. Mr. Krutz represents to the public in his City of Sparks biography that he “has participated in Harvard Law School's Program on Negotiation ..., where he honed the values of utilizing interactions as opportunities to meet everyone’s needs while preserving public safety.” Upon belief and knowledge, this Ivy-League training has given Mr. Krutz awareness that negotiating contractual disputes requires adherence tothe contractual terms. See Exhibit 2, at2 (City of Sparks Biography of Neil C, Kratz) 9. Under the plain language ofthe Agreement, the ity is entitled to terminate Me Lawson with or without cause. See Exhibit 1, at 15-18, 10. The Agreement provides that, ifthe Cty terminates Me, Lawson for ease, it must provide 30 days’ written notice and an opportunity to cure, Exhibit 1, at 17. The Agreement 20f 13 2 B “ 1s 16 7 18 19 20 2 2 23 4 2s 2% 27 expressly providesthat if this procedure isnt followed the termination is presumptively without cause, [dat 16, 11, The Agreement farther provides that, ithe City teminates Me. Lawson without cause, it must givehim 90-days' written notice. See Exhibit 1, at 16 12, Ang termination without cause requites the City to pay a six-month’ severance package that inclales salary, unused annual and personal leave, sick leave, and a one-time payment equivaleat to six-months of health, dental, vision, life, end long-term disability insurance. See Exhibit t 16-17. 13, On December 5, 2022, Mr. Kruz—without advance written or oral ntiee— called Mr, Lawonint his office for an impromptu meeting 14, using the impromptu meeting, Me. Krutz informed Mr. Lawson that he was being terminated because of pending cimingl charges that had not been filed 15, Me.Lawson asserted his innocence, and Mr. Krutz told him that his purported innocence was inelevant his continued employment. 16, —_Befire the impromptu meeting, Me. Lawson was not afforded an opportunity to seck legal counsel, preseat favorable witnesses, or present exculpatory evidence, He had no opportunity to defend himself against Mr. Kruta’'s allegations of criminality 17, Mr.Krz informed Me. Lawson tht he was being terminated, but gave him no writen notice as required under the plain language ofthe Agreement. See Exhibit 1 at 16-17 (Containing the relevant portions ofthe agreement). 18, On the same day-—December 5, 2022—Mr. Krutz published a video on ‘YouTube. In this video Me. Kruz inormed the public that he ha “terrible, bad, horrible news 19, Me Krut falsely stated in the YouTube video that he asked for Mr. Lawson's resignation and he“granted it” Mr. Lawson never resigned. 20, In tae YouTube video, Mr. Krutz said that “serious eximinal charges [are] about to be filed ageinst” Mr. Lawson, He further stated that “given the severity of the charges that ate coming down | felt that t was appropriate to part ways.” Me. Krtz finished his YouTube acres by stating that the situation i tribe," “bad,” and “unsettling,” and thatthe City would 30f 13 igure out how to step forward [and] fil the vacant Fire Chief position.” Finally, Me. Kruz represented that Mi, Lawson resigned from his postion as Fire Chie. 21, _Upm belt and knowledge, these comments objectively le members of the public to believe tat Mr Lawson engaged in serious eximinaliy, including crimes of violence and moral tuptude, dome violence, or crimes agains children. 22. Mr Kruts never stated in his YouTube video that Mr, Lawson is guaranted a presumption of inmcence under the Nevads and United States Constitutions 23, Upon belief and knowledge, multiple news organizations in the Reno Metropolitan are, and aross he country, published Me, Krut's video 24, Upon belief and knowledge, multiple news organizations in the Reno Metropolitan ares, and acros the country, published tres repeating Mr. Kruz’ allegations For instance, the Reno Gazate Journal 'RGP*) posted the video online. See Exhibit 3, at2 (Reno Gazette Jounal Stories Pertsining to Mr, Lawson) 25, Sevaral news organizations reported tht Mr, Lawion wes receiving @ gang enhancement charge, See Exhibit’ 26. Upen information and belie afer these stores were published to the world, people commentec on public boars tet Mr. Lawson engaged in howl crimes including domestic voles rimes against children, and erimes of violence andlor moral turpitude 27. On December 9, 2022-four das afer the impromptu meeting—Mr. Lawson vas charged wit, but not convicted of, several nonviolent felonies relating solely to non- hallucinogens supplements that are commonly and widely wsed for bodybuilng 28. Mr Lawson used these nonlluinogsnc supplements fr bodybuilding 29. Upon belie and knowledge, Mr. Kratz had improper communications with the Artomey General's Office anlar other law enforcement oficesto learn a the criminal charges guinst Mr, Lawson before they were ied and available for public dissemination. 30, sof the date ofthis fling, Mr. Lawson has received no compensation for his termination, even ftough such compensation was obligatory under the contact. 31, Mr. Lawson has suffered severe reputational harm due fo Mr. Krutz’s decision to 4o0f 13 publish false allegations on YouTube without any clarification that Mr. Lawson is presumed innovent, Upon formation and belief, people from all walks of life have accused Mr. Lawson of egregious criminality due to Mr. Krua's YouTube video. Due to this reputational harm, iis ‘unclear whether Mr, Lawson will be able to obtain afar and impartial venir if his criminal case proceeds toa jury til, or whether he willbe able to obiin future employment. 32. Mr. Lawson has been forced to retain the services of an attomey and is entitled to sand costs, FIRST CLAIM FOR RELIEE (Breach of Contract Against All Defendants) recover attorney 33, Mr. Lawson incorporates by reference paragraphs 1-32 asi se forth fully herein. 34, The Agreement 35, Mr.Lawson performed all obligations under the Agreement. 36, Defzndants first breached the Agreement by not giving Mr. Lawson 30-day? binding contract. vwiten notice of his termination and an opportunity to cure. See Exhibit I, at 16-17. 37. Because Defendants failed to follow the provisions ofthe Agreement to terminate “Me. Lawson with ause, his termination was presumptively without cause. See Exhibit 1, at 16- 1. 38. Defendants again breached the Agreement by filing to provide Mr. Lawson with 4 sicmonth severnce package, phis the salary and benefits that he was entitled to forthe 90- day notice petiod. Se Exhibit 1, at 16 39, Defendants willful breach ofthe Agreement has caused Mr. Lawson signifiant damages that exceed $171,218.83 soley for expectation damages; the precise amount of damages willbe proven following discovery and tial. See generally Exhibit 1 at 4-13, 16-17 containing the contract and all benefits that are due to Mr. Lawson upon termination). 40, Mr. Lavison has suffered addtional compensatory and non-economic damages die to this breach that exceed $15,000.00. 41. The City is vicariously liable forthe conduct of Mr. Kratz. 42, Mr.Lawson hasbeen forced to retain the services of an attomey and sented to Sof 13 recover attomey fess and costs SECOND CLAIM FOR RELIEF (Contractual Bresch of the Implied Covenant of Good Faith and Fair De Defendants) 1g Against AIL 43, Mr. Lawson incorporates by eference paragraphs 1-42 asi set forth fully herein, 44, Nevada contracts contain an implied covenant of good fith and fair dealing. 45. The Agreement contains the foregoing covenant 46, Mr, Lawson bad a justified expectation that Defendants would perform all, ‘provisions of the Agreement in good fuith 47, Defendants breached the implied covenant by: (1) upon belief and knowledge, engaging in improper communications to lear that Mr. Lawson had pending eriminal charges four days before they were fled in a Court and available for public dissemnation; (2) willfully refusing to comply with the termination provisions of the Agreement; (3) filing to give Mr. awison an opportunity to procure legal counsel or present favorable evidence on his behalf before he was terminated; (4) misrepresenting to the public that Mr. Lawson resigned; (5) publishing a video on YouTube that accused Mr. Lawson of criminal conduct without ay clarification that be maintains a presumption of innocence; and (6) failing to place Mr. Lawson ‘on paid administrative leave pending an investigation of his criminal charges as required by NAC. 284,589(0), 48, Asa result of this breach, Mr, Lawson has suffered significant damages that exceed $15,000.00, 49. Mr, Lawson has been forced to retain the services ofan attorney ands entitled to recover attorney fees and costs ‘THIRD CLAIM FOR RELIEF (Tortious Breach of the Implied Covenant of Good Faith and Fair Dealing Against All Defendants) 50. Mr. Lawson incorporates by reference paragraphs 1-42 asif set forth fully herein, From this section, Mr. Lawson exclude paragraphs 43-49 (which apply to a contractual breach 6 0f13 ofthe implied covenant of good faith and fair dealing). 51. Mr.Lawson maintained a special relationship with Defendants because he relied heavily on them tocomplete their obligations under the Agreement. 52, Defindants were ina postion of power and superiovty that made Mr. Lawson rely on them to effectuate the terms ofthe Agreement in god faith 53. Mr.Lawson ad every reason to belive that Me. Kruz, sa publi official, would fulfil his obligations in good fit with a view towards the public interest 54, Defendants refused to comply with the Agreement, even though they knew that they were requiredto fulfil ts provisions when terminating Me. Lawson. 55, Defindants breached the implied covenant by (1) upon belief and knowledge, engaging in improper communications to leam that Me Lawson had pending criminal charges four days before they were filed in a Court and avsilable for publi dissemnation; (2) willfully refusing to comply with the termination provisions ofthe Agreement; (3) fling to give Mr Lawson an opportinity to procure legal counsel or present favorsble evidence on his behalf before he was feminated; (4) misepresenting to the public that Mr. Lawson resigned: (3) publishing a video on YouTube that accused Mr. Lawson of criminal conduct without any clarification that he maintains a presumption of innocence; and (6) failing to place Me. Lawson con paid administrave eave pending an investigation of is criminal charges as required by NAC 284.5890) 56, Cortractual damages are insufficient to protect Mr. Lawson from the foregoing tortious conduct 57. Asa result ofthis breach, Mr. Lawson has suffered significant damages that exceed $15,000.00, 58, Mr.Lawson has been forced to retain the services ofan atomey and is entitled to recover atiomey fas and costs FOURTH CLAIM FOR RELIEF (Defamation Per Se Against AM Defendants) 59, Mr. Lawson incorporates by reference paragraphs 1-49 as if st forth filly herein 70f 13 60, Defindants published a YouTube video with false statements of material fit. See, e.g, Exhibit 3212-3, 61, _Upcn belief and knowledge, before publishing the YouTube video, Mr. Kratz took no reasonable steps to ascertain the truth ofthe allegations against M. Lawson 62, Mr.Krut's YouTube video alleged that Mr. Lawson resigned, which isa false statement of materal fact. 63, Mr. Krutz’s YouTube video alleged that Mr. Lawson engaged in “serious” criminal conduct, leading objective reasonable media outlets and people to believe that he engaged in seriow criminality including eximes of violence and/or moral turpitude, gang violence, domestic violence, or erimes aginst children. See, et, Exhibit 3, at 2. 64. Me. Krut's YouTube video filed to mention that Mr. Lawson maintains presumption of innocence under the Nevada and United States Constitutions. 65, Mr.Krutz published the YouTube video with knowledge that his statements were false and/or recklessly disregarded the tra 66, Mr, Kruz’ false statements of fact pertained to Mr. Lawson's oeeupation and accused him of erminality. ‘Thus, Mr. Lawson need not prove he suffered damages and can recover damages solely forthe reputational harm he has sufered. Moreover, Mr. Lawson may not be able to obtain fair and impartial venir if his criminal charges ae tried by jury. 67. The City is vicariously lable forthe City Manager's (Mr. Kratz) misconduct 68. Asa result of Mr, Krut’s defamatory remarks, Mr. Lawson has suffered significant damages for reputational ham and future los of income that exeeed $15,000.00 69. Me.Lawsoa has been required to retain the services of anattomey and is entitled to recover attorney fees and costs FIFTH CLAIM FOR RELIEF (alse Light Against All Defendants) 70, Mr. Lawson incorporates by reference paragraphs 1-49 and 59-69 asi set forth fully herein 71. By publishing the video on YouTube, Defendants gave publiiy to a matter 80F13 conceming Mr. Lavson tat placed Mr, Lawson before the publi in false light 72. Upen information and belief, numerous media outlets reported that Mr. Lawson received gang enhancement charges, more severe felonies, or other false statements of material facts that will be poven based upon evidence obtained during discovery. See, eg, Exhibit 3, at 23 7S. Upen information and belief, media outlets used Mr. Kruta's false statements in his YouTube video to make these reports 74, ThefAlse light Mr. Lawson suffered is highly offense toa reasonable person. 75, Mr. Kruz recklessly disregarded the tuth before publicizing the false light in which he placed Ms. Lawson or had knowledge ofthe falsity ofhis statement 76, Theale light contained multiple false statement of objective fact. 77. Assaresult of Mr. Krut’s publication ofa fale light, Mr. Lawson has suffered significant damages that exceed $15,000.00. 78, _Mr-Lawson has been required to retain the services of an attorney and is entitled to recover attomey fees and ests SIXTH CLAIM FOR RELIEF (Specific Performance Against All Defendants) 79. Mr.Lavwson incorporates by reference paragraphs 1-49 as ist forth flly herein 80. Theterms ofthe Agreement are sullicienl definite. 81, Defendants filed to give Mr. Lawson 30 days" vitennotce of his termination and an opportunity to cure. See Exhibit 1, at 16-17. 82, Because Defendants filed to fllow the provisions of the Agreement to terminate ‘Me. Lavson with cause, his termination was presumptively without cause. 83, ‘The Agreement provides that, upon termination without cause, Mr. Lawson is cntted to siementh severance package, pls the salary and benefits that he was entitled to for the 90-day notice period, See Exhibit at 16-17, 84. Under the terminaton-without-cause provisions of the Agreement, Mr. Lawson yas entitled to atleast $171,218.83 plus six months’ of insurance. 90f 13 85, Theterms ofthe Agreement are sufficiently definite and unambiguous. 86, Mr.Lawson is entitled to specific performance ofthese terms, 87. Mr.Lawson has been required to retain the services of an attomey and is entitled to recover attomey fees and costs ‘SEVENTH CLAIM FOR RELIEF (Punitive Damages Against all Defendants) 88, Mr.Lawson incorporates by reference paragraphs 1-49 asi st forth fully herein, excepting paragraphs 33-49 (hich apply to contactul damages) and paragraphs 77-75 (which spply to spect peformance, 89, Mr. Krute acted with malic, fraud, and oppression by: (1) upon belie end knowledge, comm:nicating with law enforcement to lear of Me. Lawson's criminal charges before they were files (2) misrepresenting to the public that Me. Lawson resigned (3) willfully disregarding the tems of the contract whe terminating Me, Lawson; (8) giving Mr. Lawson no opportunity to defen himself (5) publishing the foregoing on YouTube without any explanation that Mr, Lawson maintains a presumption of innocence; (6) defaming Mr. Lawson; (7) placing ‘Mr. Lawson ina false light (8) disregarding the Sparks City Charter and (2) fing to place Mr Lawson on paid administrative eave pursuant to NAC 284.589(3), 90. Given Me. Kru’ advanced traning at Harvard Law School, he had knowledge ofthe law sufficient to support an inference that his unlawful termination of Me. Lawson, and bis defamatory remarks against Me lawson, were malicious. See Exhibit2, a2 91. Under Nevada law, there is no cap on punitive damages for defamation, 92. Mr. Krutz’s misconduct should be detured by vay of punitive damages, particulary because he may have prejudiced Me, Lawson's ability to obtain fer and impartial jury for his criminal charges 83. TheCity is vicariously lable for Mr Krut’s misconduct, 94, Mr. Lawson has been requited to retain the services ofan attorney and is entitled to recover attorney fees and costs Mn 10 of 13 2 B “4 1s is 0 18 » 2 2 23 25 26 7 28 SEVENTH CLAIM FOR RELIEF (Ultra Vires Against Neil C. Krutz Only) 95. Me. Lawson hereby incorporates paragraphs 1-93 into this section of the complaint as if st forth fully herein 96. Unde the Agreement, Mr. Krutz had the power to terminate Mr. Lawson with or without cause. See Exhibit 1 97. Under the Sparks City Charter, Section 9.100, Mr. Kratz had power to dismiss Mr. Lawson, Yet, the Sparks City Charter required Mr. Krutzto notify Me. Lawson in writing before secking the dismissal. Sparks City Charter §9.100(). 98. TheSparks City Charter further required Mr. Kratz to mal notice ofthe dismissal this last known address or personally deliver it to him, Sparks City Charter § 9.10003) 99. However, the Sparks City Charter required Mr. Krutz fo give Mr. Lawson a ‘writen notice ofthe reasons for his planned dismissal andthe opportunity to respond tothe same, ‘Sparks City Chart: § 9.10043). 100. Mr. Krutz failed to comply with any of these provisions under the Sparks City Charter before terminating Mr. Lawson 101, Section 3,020 of the Sparks City Charter outlines the duties ofthe City Manager. 102, Nowhere inthe duties ofthe Manager was Mr. Krutz permitted to act asthe head ofthe goverament and make statements to the press regarding Mr. Lawson’s employment 103, Instead, the Sparks City Charter states that the mayor is the head of the government for the City forall purposes, Sparks City Charter § 3.010(1}(6). 104, Mr. Keutzacted beyond the scope ofthe City Charter by not allowing Mr. Lawson the opportunity to respond to the reasons for his dismissal 105, Mr, Krutz acted beyond the scope of the City Charter by making statements to the press regarding Mr. Lawson even though he was not the head ofthe City government, 106, Mr. Krutz acted beyond the scope of the City Charter by publishing a video on ‘YouTube wherein he falsely described the termination of Mr. Lawson as a resignation. 107, As of a result of the Mr. Krutz’s ultra vires acs, he is personally liable to Mr. of 3 Lawson forall damages outlined in this complaint PRAYER FOR RELIEE 1. Me. Lawson been forced to retain the services of an attomey to prosceute the instant claims, and therefore is entitled to costs and reasonable attomey fees 2. Damages exceeding $15,000 as tobe proven ata jury tral based upon evidence collected in discovery and til 3. Pantive damages under NRS 42.005 4. Any other relief this Court sees as important to achieve justice, AFFIRMATION Pursuant toLocal Rule 10(7), NRS 239B.030(9)(), and NRS 603A.040(1), undersigned counsel affirms tht this filing does not contain the personal information of any person, DATED this Ldth day of March, 2023. HUTCHISON & STEFFEN, PLLC 4/Jason D, Guinasso Jason D, Guinasso, Esq, (6478) Russell J. Carr, Esq. (15191) Astrid A. Perez, Esa. (15977) HUTCHISON & STEFFEN, PLLC 5371 Kietake Lane Reno, Nevada 89511 “Tel: (775) 853-8746 Fax: (775) 201-9611 iguinasso@hutchlegal com [email protected] apetez@hutshlegal com

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