Legal costs, impact on women often overlooked in lawsuits

When a state agency settles a lawsuit, often times the public’s focus is on how much money the state settled for. But an often overlooked portion of legal battles with state agencies is how much the state paid for legal representation. 

Since former Gov. Susana Martinez left office nine months ago, there have been a number of news reports about settlement payouts to a handful of former state employees for alleged workplace discrimination. Often, public scrutiny is aimed at the plaintiffs. In a high profile settlement involving former Department of Public Safety employees, New Mexico’s former State Police Chief, who was accused of sexual harassment, called the claims from his former employees baseless and accused them of extorting money from tax payers. But lawyers from two different lawsuits covered extensively by NM Political Report argue that there should be more focus on how much the state pays for long, drawn-out legal defenses to ultimately settle for hundreds of thousands of dollars, specifically when women are the accusers. 

 ‘It’s going to be like a proctology exam’

In December 2017, less than a month after the University of New Mexico Health Sciences Center agreed to cut a jury trial short and settle with a former medical resident, Anesthesiology Chair Hugh Martin broke some bad news to his faculty—they would not be getting bonuses that year. 

“I regret to inform the faculty that due to the recent legal settlement with the former dismissed problem resident, Cyndi Herald, that the Department had to reallocate the monies I had planned to use for a retention bonus to pay the settlement legal costs to Ms. Herald/Attorney Lisa Curtis,” Martin wrote. 

The “problem resident” Martin referred to, Cynthia Herald, had spent years in a legal battle with her former employer.

NM cabinet secretary wants to address secret settlements

A New Mexico law that allows legal settlements with state agencies to be kept a secret for at least six months may get a makeover in the next legislative session. 

General Services Department Secretary Ken Ortiz told NM Political Report his office, which oversees the state’s Risk Management Division, is in the process of creating a working group to address a relatively unknown statute that mandates settlements stay secret for 180 days. The same law that established the Risk Management Division, which often serves as the state’s de facto insurance provider, contains a “confidentiality of records” section, which is often referred to by its citation number 15-7-9 as legal shorthand. 

That section of the statute is less than 300 words and is ambiguous about exactly when the 180 days starts. There are four instances in which the law says the clock starts ticking: when “all statutes of limitation applicable to the claim have run,” when litigation is done, when the “claim” is settled or when the claim is in “closed status.”

Ortiz said previous claims filed with Risk Management were sometimes never put into closed status, simply because someone failed to close it in division’s computer system. 

“I wanted to take the human element out of 15-7-9,” Ortiz said. 

The failure to “physically click on a button,” Ortiz said, would sometimes delay the start of the 180 days by an extra six months. 

“What we’ve seen when we reviewed settlements is, for whatever reason, it took several months after the final action on that case for the staff to administratively close it,” Ortiz said. 

That means a 180-day confidentiality period could easily run for more than a year.  Last year, for example, the New Mexico Corrections Department settled a lawsuit with six women who sued the state, claiming they were sexual assaulted and harassed by their superiors. That case was settled in January 2018, but GSD’s lawyer at the time said claims were not complete until all of the state’s legal bills were paid, which did not happen until six months after the case was dismissed. 

Now Ortiz said he’s working with the governor’s office and lawmakers to better define when the confidentiality period starts, and possibly address whether it should even be 180 days.  

Mr. Ortiz goes to the Legislature

Ortiz said he was aware of the confidentiality period before he took the job as cabinet secretary, but was not fully aware of the issues it presented until he started getting calls from news reporters—this one included—about settlements. 

“We thought, ‘This is truly tax payer money and people have a right to know,’” Ortiz said. 

Ortiz said conversations about transparency also came up when State Sen. Sander Rue, R-Albuquerque, and State Rep. Linda Trujillo, D-Santa Fe, introduced a bill that would require the state to post the specifics of all human rights settlements online. Ortiz said he wants to include the two lawmakers in crafting legislation to address the issue.

State tries to keep $2.5 million Corrections Dept. settlement under wrap

After almost two years of legal battles, the State of New Mexico agreed to settle a lawsuit filed against its Corrections Department. In 2015, six female employees at the state prison in Los Lunas sued the department, saying some of their male supervisors assaulted and sexually harassed them. The six women collectively received $2.5 million according to the settlement agreement signed in January. Their attorney, Laura Schauer Ives, said the women sued the Central New Mexico Correctional Facility to shed light on what they called a culture of demeaning female corrections officers. The 140-page lawsuit alleged a history of aggressively sexual comments and crass words directed at female officers.

UNM pays $800K in settlement, still secretive on other details

The University of New Mexico paid out nearly $1 million to a former medical resident who accused medical school administrators of retaliating against her for reporting she was raped by a male resident. NM Political Report obtained the settlement agreement this week, nearly nine months after the case went to trial. The agreement, obtained by NM Political Report through a public records request, sheds some light on why the school settled with former University of New Mexico Health Sciences Center anesthesiology resident Cynthia Herald. But other specifics, like how much of the $800,000 settlement came from the school and how much from the state or what prompted the school to settle, remain murky at best. Herald now lives in Michigan, advocating for victims of sexual abuse and hopes to start a psychiatric residency program soon, according to her lawyer, Randi McGinn.

State law encourages secret payouts

Before Cynthia Herald left the Bernalillo County courthouse last November she told reporters that she was relieved to finally gain closure on an ordeal with the University of New Mexico that lasted more than half a decade. Herald sued the university’s medical school, claiming she was wrongfully dismissed from a residency program and settled before closing arguments. The terms of the settlement were, by state law, temporarily shielded from public scrutiny. That meant the public couldn’t see the total amount UNM agreed to pay, including how much money was to come from the medical school’s anesthesiology department and how much from the state’s Risk Management Division. Seven months later, the University still won’t release that information and cites the same law.

2017 Top Stories #1: Guv’s office faces lawsuits

Next month marks the beginning of Gov. Susana Martinez’s last year in office. This year, though, was peppered with lawsuits against either Martinez’s office or state departments under her appointees. At least two of the three major suits will spill over to 2018, bookending Martinez’s tenure as governor. See all of our year-end stories

A lawsuit against the New Mexico Public Education Department for allegedly underfunding the state’s schools received significant media attention in 2017. The case goes back several years and consolidated three similar cases.

NM auditor report shows large gender pay gaps, problems with state tracking

The Office of the State Auditor released a report Wednesday showing a significant gap in pay between men and women in New Mexico. According to the report, women who are employed in managerial or policy making roles in New Mexico are paid on average 26 percent less than men in the same positions in the state. The smallest gap, according to the report, is in the service industry where women are still paid about 10 percent less than men. Besides pay gaps, the report also shows the “category for manual workers of relatively high skill level” is made up of only three percent women. In addition to showing the disparity between pay for men and women in the workforce, the auditor’s report also noted that the state’s General Services Department (GSD) has a “low compliance rate” with keeping and tracking reports submitted by state vendors.

State faces new open records suit over pay to guv’s favored attorney

A lawsuit filed Thursday afternoon in Santa Fe District Court aims to uncover how much New Mexico taxpayers shelled out for a private attorney to represent Gov. Susana Martinez’s office in a number of court cases. Journalist Jeff Proctor* filed the lawsuit against the state’s General Services Department (GSD) for not releasing attorney Paul Kennedy’s invoices for his public work, claiming the department failed to comply with the state’s Inspection of Public Records Act (IPRA). The suit calls for the state to release specific invoices and bills that show how much the state has paid Kennedy to represent Martinez as contract counsel in several cases. In addition to retaining Kennedy, Martinez also has access to four state employed legal staff, whose combined salaries total $341,850. The lawsuit states by not releasing Kennedy’s billing records GSD not only violated the open records law, “but also offend the spirit and intent of the law governing matters of public concern.”

That spirit of the law, said Proctor’s lawyer Frank Davis, “is to make sure we have an informed electorate.”

“We need to know where dollars are being spent,” Davis said.

Winners and losers of the 2017 session

One of the biggest winners in the just concluded 60-day session of the New Mexico Legislature was a man who never set foot in the Roundhouse and, in fact, never came close to crossing the state border. His name is Donald J. Trump, the president of the United States. Republican Trump lost New Mexico in November by 8 percentage points, and Democrats control both the state Senate and House of Representatives. Even so, several pieces of legislation aimed at Trump failed to get traction in the Legislature. Senate Bill 118, sponsored by Sen. Jacob Candelaria, D-Albuquerque, would have required presidential candidates to disclose five years of personal income taxes to get on the general election ballot in New Mexico.

Senate yanks real estate bill; lawmaker says pay-to-play maneuver exposed

In an extraordinary maneuver, state senators killed a bill Saturday that they had approved four days earlier after one of them said he had misled his colleagues about connections between Republican Gov. Susana Martinez and real estate developers who stood to benefit from the legislation. Democrats charged that the bill, which would have extended a building lease for state offices in Albuquerque, had turned into an example of pay-to-play politics, while members of Martinez’s administration maintained they had made an honest mistake based on incomplete information. For her part, Martinez said through a spokesman that neither she nor her staff ever discussed with campaign donors the leases addressed in the measure. At issue was an unusual and late-breaking piece of legislation, Senate Bill 430, that met with skepticism at just about every step of its journey through the Capitol until its sudden death Saturday. Sponsored by Sen. Steve Neville, R-Aztec, the bill would have carved out an exception to state rules on renting property.