Port Hueneme reaches settlement with former employee who filed harassment claim

The city of Port Hueneme has reached a settlement with a former employee over a claim she filed alleging harassment and discrimination. 

The city's insurer will pay Carmen Nichols $550,000 and the city admits no wrongdoing, according to terms of the settlement. 

In a separate case, a judge has found a federal lawsuit against the city filed by former City Council member Jim Hensley to be without merit. U.S. District Court Judge André Birotte Jr. granted Port Hueneme's request for a summary judgment, which essentially means Hensley's claims weren't strong enough to move the case forward.

"After review of Plaintiff's pleadings and the records of City Council meetings, the Court determines there are no genuine issues of material fact," Birotte wrote. 

The judge's conclusion was incorrect, Hensley and his attorney said.

“We’re going to be taking an appeal," said Samuel Galici, the attorney representing Hensley. "I’m very disappointed in the court’s decision. I think it’s flatly wrong."

Previous coverage:Former Port Hueneme employee alleges sexual harassment, racial discrimination

Claim alleged harassment, discrimination

In August 2017, Nichols resigned from the city after 22 years. A month later, she filed a claim that included multiple allegations of misconduct by Hensley. The claim also took to task other employees who allegedly let his and others' mistreatment of her continue.

"Since approximately January 2015, City Council member Jim Hensley repeatedly harassed and discriminated against Ms. Nichols because of her gender and race on a continuous basis until she was forced to quit in early August 2017," Nichols' attorney, Ron Bamieh, wrote in the claim.

Bamieh did not return calls for comment.

Galici said her allegations were untrue and there was no proof of a hostile work environment.

"There's about zero evidence against Mr. Hensley," he said.

If a complaint like Nichols' had come into the city, she would have rejected it "out of hand," Galici said. 

The claim alleges numerous instances of Hensley's treatment of Nichols, who left as deputy city manager. Multiple times, Hensley referenced Nichols' looks and insinuated she wasn't doing her job, according to the claim. He publicly opposed a pay raise for her when she was named interim city manager, even as she earned less than men who had held the position, the claim stated.

Hensley often referenced Nichols' ethnicity, referring to her as a "Latina," and "openly expressed his dislike for Hispanics," the claim says. Hensley was also quoted in a story in the Citizens Journal accusing Nichols of conspiring to hide a story involving another former city employee, according to the claim. 

Hensley sues the city

In November 2017, Hensley filed a federal lawsuit, seeking monetary damages for lost wages and benefits related to his removal from some committees as well as emotional distress, according to the filing. He wanted to be reinstated to those boards and to the post of mayor pro tempore, from which the council voted to remove him.

It sought an injunction to bar other council members or city staff members from limiting Hensley’s free speech rights or from taking punitive action against him based on “viewpoint discrimination,” the document stated.

Related:Port Hueneme City Council member Jim Hensley sues city

The judge made the wrong decision, Galici said, and Hensley plans an appeal.

Ongoing concerns with employees, former and current, as well as elected officials, prompted Port Hueneme's insurer to consider dropping the city from coverage that protects it from claims of harassment, wrongful termination, discrimination and other types of workplace misconduct.

In the end, the California Joint Powers Insurance Authority agreed to let the city retain the insurance in exchange for the city covering the first $250,000 of any claim that happens after July 1, 2017.

Nichols' claim related to alleged behavior that happened before that, so the insurer is picking up the entire tab.

Arlene Martinez covers local government and energy. She can be reached at amartinez@vcstar.com or 805-437-0262.

Read the summary judgment here: 

Read the settlement reached with Carmen Nichols here: