City agrees to cover ex-chief's liability

By William Kaempffer
Published: Friday, July 4, 2008 3:00 AM EDT

NEW HAVEN - Former Police Chief Melvin H. Wearing is off the hook after all for $1.35 million in punitive damages from a 2002 lawsuit - which the city had initially refused to cover - but only after he blasted the mayor and former city lawyers, claiming fraud and negligence in a lawsuit of his own.

On Wednesday, 10 days after the administration received Wearing's civil suit, the city's Litigation Settlement Committee unanimously approved a deal that would, in effect, indemnify Wearing for the million-plus in punitive damages and hundreds of thousands of dollars in accruing interest if the city-financed appeal of the jury's award were to fail.

COURT DOCUMENTS: Exhibits


COURT DOCUMENTS: Motion


Wearing could not be reached for comment, and his lawyer, Hartford-based Hubert Santos, did not return a message seeking comment Thursday.

Corporation Counsel Jonathan Ward, who supported the settlement, said while the administration contests Wearing's claims, the potential financial liability could be "astronomical" if things didn't go the city's way in court.

Wearing's suit claims city attorneys assured him any damages against him would be covered in a politically charged lawsuit filed by a New Haven cop but reneged when a federal jury in 2005 awarded Officer Arpad Tolnay $5 million in punitive damages against his chief.

A judge later reduced the verdict to $1.35 million and the case is under appeal before the 2nd U.S. Circuit Court of Appeals in New York.

Within the last week, however, Tolnay's lawyer, Karen Torre, began securing writs from federal court to freeze Wearing's bank accounts and attach his property, cars and pension.

"There was a huge level of urgency to this, and we're making the whole thing go away by doing this," said Ward.

Consider Ward's account of the worst-case scenario for the city: The Tolnay appeal fails and Wearing is on the hook for $1.35 million. Then Wearing wins in his lawsuit, which claims negligent infliction of emotional distress, fraudulent misrepresentation by city lawyers, breach of contract, among other claims.

"If we got a judgment in that case, the damages could possibly be astronomical," Ward said. "If we settled that one, we stop the bleeding."

Chief Administrative Officer Rob Smuts said there was a recognition on the settlement committee that city lawyers "had not adequately informed (Wearing) of his exposure," leading to the unanimous vote.

The lawsuit names Mayor John DeStefano Jr., former Corporation Counsel Thomas Ude and former Assistant Corporation Counsel Jonathan Beamon.

The Tolnay case, which centered on the arrests of two politically influential ministers, has already caused embarrassment for the DeStefano administration. DeStefano and other top aides were forced to testify in depositions, at the trial and in subsequent hearings, facing withering questioning.

Back in 2002, the charges against the ministers, who were supporters of DeStefano, were dropped before they ever went to court after Wearing visited a prosecutor, and DeStefano appeared at the church soon after and made a public apology to the congregation.

Tolnay received a 10-day suspension, a transfer to detention and mandatory sensitivity training after a heated meeting with Wearing in which he complained that the ministers' political connections interfered with his ability to equally enforce the law.

A jury awarded him $5 million in punitive damages. Senior U.S. District Judge Ellen Bree Burns reduced the award to $1.35 million.

Torre, Tolnay's attorney, declined comment Thursday because she wasn't aware of the settlement offer with Wearing.

The appeal will continue.

Ward said the city's insurance company will take out a $1.35 million bond and send a letter to Torre indicating that it, not Wearing, would pay the award if the appeal were to fail.

Smuts said the city is doing a better job of informing employees that they're on their own if punitive damages are awarded against them in lawsuits.

William Kaempffer can be reached at wkaempffer@nhregister.com or 789-5727.