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Norwalk: Indemnification


by turfgrrl


February 22nd, 2008 · 46 Comments

The finance committee of the common council debated, sort of, whether to reimburse Nick Kydes for the lawyer that he hired to defend himself against then fellow council member Kevin Poruban’s ethics complaint. As an appointed official myself, I have to agree with the conclusion of corporate counsel on the indemnification of elected and appointed officials. 

“My information, again it’s from almost anecdotally, but it’s from people who told me things about past practice,” Maslan said. “My understanding has been when an official, like a council person, was the subject of a complaint, and the activity, or the conduct, or the action that is the focus of the complaint was the person actually acting in the capacity as council person, then the provision of the defense was automatic.”

Council Majority Leader William M. Krummel and Norwalk resident Diane Lauricella, also at the Finance Committee meeting, took strong issue with that assessment.

“The old code of ethics was silent on reimbursement for either complainant or respondent. The new code introduced a change in policy, to some extent,” Krummel said. “But the substantive changes in the new code were not made retroactive. What has been produced in the new code really does not apply to this case.

“I think clearly this was not allowed,” Krummel added. 

Krummel once again is missing the bigger picture here. The old ethics code, and for that matter the new ethics code, isn’t the issue here. It’s the indemnification of officials that is the issue, and either you believe that all actions of officials should be indemnified or not. Normally, if an official is the subject of a lawsuit, the city legal department handles the defense work.

In the case of an ethics charge, especially one brought by another official it is obvious that the city’s legal department can’t defend the official for a variety of reasons–starting with not wanting the city of be in the position of defending potential unethical behavior. I don’t think any government that relies on council members who get paid $50 a month or appointees that are 100% volunteer could function without blanket indemnification.

So the issue becomes, the cost of a private defense action.If Krummel had been thinking he might have realized that by objecting to the indemnification he would be exposing Kevin Poruban to having to defend himself against a Kydes counter charge, since Poruban clearly broke the confidentiality cone of silence when he released the complaint to the press.Meanwhile Anne Carbone should be paying attention to the corporation counsel’s argument here, since an earlier ethics charge filed against her also seems to fall under the same issue of a complaint filed against an official carrying out duties of office.There’s financial issue here, is something that it seems only Amanda Brown picked up on. 

When the vote came, Hilliard, Richard J. Bonenfant, Michael K. Geake and Douglas E. Hempstead voted in favor of the reimbursement request. Douglas W. Sutton abstained from the vote. Amanda M. Brown, a paralegal, took issue with the cost of Kydes’ legal defense and voted no.

“I was hoping that it wouldn’t pass,” Brown said. “But since I’m obviously outnumbered in this, I just want to say for the record that I would have hoped that you all would have taken at least some kind of discount in this bill, because $13,000 is excessive for this bill.”  

The city should be able to cap what legal fees are incurred in the defense of its officials. To not address this particular point at the finance committee level is pretty outrageous. There appears to be a lack of interest in a healthy debate about legal contingency funds, and omissions and liability insurance should an extraordinary circumstance develop.Political flunkies should perhaps spend a bit more time focused on the business of government instead of the party and personal politics that seem to overshadow common sense. 

source: The Hour, Finance: Reimburse Kydes, February 22, 2008 

Tags: Norwalk

46 Responses so far “Norwalk: Indemnification”


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  • 1 Anonymous Too // Feb 22, 2008 at 9:35 am

    First of all, from what I heard, it clearly WAS a situation where he had a conflict of interest. So why should I, a hard-working taxpayer, have to foot his bill. If I did something “wrong” - would HE help pick up the tab for my legal fees. I strongly doubt it.

  • 2 anonymous // Feb 22, 2008 at 10:10 am

    If the city is paying, shouldn’t some sort of purchasing gudielines apply? Isn’t there a process to be followed if a commissioner or elected offical declines to use corp counsel and opts for a private attorney — for wahtever reason? Shuoldn’t copr counsel at least have oversight of the legal fees? When was this determined to be a hearing rather than fact-finding (which theoretically would not have required a lawyer)? If the city supported a lawyer for one side, why wes there no recommendation of legal representation for the other side (Poruban?) Did finance have an itemized bill? Was there an estimate and a contract? How is the accuracy of the billing ascertained? Oh…I could go on but why bother. It’s another example of friends get the goodies and the rest of us get screwed.

  • 3 Anon One // Feb 22, 2008 at 10:26 am

    Anonymous Too, you heard from who Poruban? The Ethics Committee’s finding after a public hearing was that there was NO probable cause for the charge. Poruban admitted he did not investigate his claim; he just read a newspaper account and had Knopp draft the charge for him. So the bottom line was Poruban tried to slime Kydes with an unfounded charge just before the election.

    Turf is right the issue is indemnification. Either we protect our unpaid officials or we don’t. And who will volunteer in the future if the exposure is pay for your own lawyer or risk having your name damaged by slimy unfounded political charges. This time it was Democrat slime job; next time it may be a Repub slime job. All persons involved in good government should want to protect officials who volunteer their time for the City from baseless charges.

    If the City wants to trim the fees a little to send a message there are limits to future fee requests, that might make sense. Brown is right, most lawyers will give a 10-15% discount especially for a public official. The City should agree to pay and authorize Maslan to get a fair disocunt.

  • 4 turfgrrl // Feb 22, 2008 at 10:30 am

    anonymous 2: I think the ethics code in place at the time required that a hearing be held. Poruban was given the same advice from corp counsel as Kydes.

    At the very least, the finance committee should have excluded the stenographer, since the hearing was recorded anyways. You’d think they’d have asked for corp counsel to review the legal bill for merit, but apparently not.

  • 5 anonymous // Feb 22, 2008 at 10:40 am

    Corp counsel provided advice to Poruban to seek independant counsel? Really? Then why was Poruban so blind-sided at the meeting that Kydes showed up with legal counsel? Something really smells about this whole thing. As someone so eloquently stated earlier on this blog — the fish stinks from the head down. I just keep seeing the Hour picture with Kydes arm draped across Moccia’s shoulder. TCB.

  • 6 turfgrrl // Feb 22, 2008 at 10:49 am

    anonymous 5: Yep, that’s the benefit from actually attending these meetings and hearing what is actually said.
  • 7 anon // Feb 22, 2008 at 12:11 pm

    Turf shows a complete lack of respect for elected and appointed officials by continually calling them political flunkies. Perhaps she should look in the mirror.

  • 8 turfgrrl // Feb 22, 2008 at 12:34 pm

    anon: And what makes you think I’d exclude myself from the flunkie-dom nomenclature? The taxonomy of turf language on politics is designed to irreverent. Dare I suggest that you buy yourself a sense of humour?
  • 9 Anonymous // Feb 22, 2008 at 1:30 pm

    Its nice someone reconizes them as elected and appointed officials most think some have simply abandoned the residents of Norwalk completely.We have at times a cosmetic counsel and mayor at times finding the need to cover the facts based on what sounds good and not what the sentiment of the city is.

    Feeling the federal government is not doing enough to curb urban violence, several large East Coast cities, led by New York Mayor Michael Bloomberg and Boston Mayor Thomas M. Menino, are taking action. Norwalk participates in another coalition against illegal firearms led by Mayor Bloomberg. They propose creating a database to pool information on gunrelated crimes and firearms trafficking, using data from the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives along with information collected by local agencies. The mayors say it will make it
    more difficult for illegal gun dealers to do business through the I-95 corridor. Violent crime, especially that involving firearms, is a national crisis, not just a local one. Any measure that can curb this violence needs to be implemented. This was in the Hour

    we can’t even get a police report published daily the FBI can’t even get the stats from the Norwalk police dept to publish whats wrong with that picture? Who is working on a data base here in Norwalk?

    So where does Norwalk sit on this? hate to think we will hear more from the Hour and not the mayor and council on the coalition we belong to.

    So today is a snow day so we forget about crime and focus on Frosty thats making one or drinking one.

  • 10 high road // Feb 22, 2008 at 1:35 pm

    From the minutes of April 7, 2007 Council Ethics Committee

    “The question of whether the City would provide counsel for someone against whom a violation has been made. Attorney Nolin said that the City should not be defending someone against an ethics claim. The Board can recommend that someone not found guilty by awarded costs and legal fees. This is a policy decision. Committee members were not in favor of this. Attorney Nolin suggested adding this to Section 12 – that a person could request costs and legal fees from the Board of Ethics, which would then go to the Common Council.”

    So, reimbursement was not a provision of the old code. Nolin said corp counsel should not represent city officials in ethics complaints. Recommends requesting costs and legal fees from Board of Ethics. Commitee is against it.

    So the Kydes ethics complaint was handled under the old code which everyone (at least in this meeting) understood to have NO PROVISION for reimbursing legal fees. So tell me again why we are paying Kydes bills for him?

  • 11 Jeff Hall // Feb 22, 2008 at 3:27 pm

    High road: “So the Kydes ethics complaint was handled under the old code which everyone (at least in this meeting) understood to have NO PROVISION for reimbursing legal fees. So tell me again why we are paying Kydes bills for him?”

    Because he incurred these costs as a cost of his duties as a public official, and reimbursing him is the honest and moral thing to do. If holding public office meant that any sleazy or opportunistic opponent could put you through an ethics hearing at your own expense, wouldn’t you think twice before serving? In fact, what sort of people would we have serving? The mind boggles!

    There are lots of similar situations from everyday life. When you eat at a restaurant, your contract with the restaurant (the menu) has “NO PROVISION” for giving the waitress a tip. You leave a tip because it is the honest and moral thing to do.

    Likewise, if your employers promise year-end bonuses, there is probably no legal requirement that they honor their commitment. Nevertheless, you know that they are probably going to behave honestly.

  • 12 high road // Feb 22, 2008 at 4:03 pm

    That argument has so many holes in it, it’s not even worth responding to.

  • 13 abolish hypocrisy // Feb 22, 2008 at 6:22 pm

    As a lawyer, I would not volunteer my time to any organization without appropriate provisions for indemnification.

  • 14 wait a minute // Feb 22, 2008 at 8:52 pm

    I thought a Kydes family member bought a property in the path of a redevelopment plan that their relative in the government knew more about than the general public because of his intimate knowledge of the project, and one that he had been voting on and making decisions about prior to this sale?

    Is this not true? And wasn’t that worth investigating?

    Maybe it still is….

    And Norwalk lost yet another historic property to a bunch of opportunists who want to gut the historic theater and potential cultural center and turn it into condos.

    Another success story from our neighbors that hail from the cradle of civilization.

  • 15 anonymous // Feb 22, 2008 at 9:32 pm

    You are beating a dead horse. That’s what the ethics investigation was all about and Poruban was wrong and that’s why the City got stuck footing the bill. Hopefully the City will go after Poruban to recover the expenses his false accusations created.

  • 16 anonymous // Feb 22, 2008 at 10:32 pm

    I sure hope that the Globe is preserved as a theatre and a community cultural center instead of more condos. I am sure that many other people agree. What can we do?

  • 17 anon // Feb 23, 2008 at 9:21 am

    The whole Kydes thing still stinks, even if it was dismissed by a whitewashing ethics panel trembling in their seats when lawyers in fancy suits showed up.
    Insiders know it was a breach of ethics.
    A fifth grader could see this was a sleazy deal.
    Even Kydes lawyer was ripping Norwalk off.

    Can’t you imagine the exchange: “Let’s charge them through the nose and stop this ethics crap from bothering us again.”

  • 18 anonymous // Feb 23, 2008 at 10:41 am

    16…You can buy the theater and preserve it any way you want. That is the beauty of America.

  • 19 AKABI // Feb 23, 2008 at 10:59 am

    All the freedom that money can buy

  • 20 anonymous // Feb 23, 2008 at 11:16 am

    Or you could get together with like minded people and pool your money together to buy and preserve whatever you want and make it self sufficient. All at no expense to the taxpayers.

  • 21 High road // Feb 23, 2008 at 11:36 am

    This isn’t about the ultimate use of the Globe; it’s about whether the purchase by a close relative of a councilman was influenced by insider information about the redevelopment area that was not available to the public at large. That’s the ethics issue. Eventual use is irrelevant to this dicussion.

  • 22 anonymous // Feb 23, 2008 at 11:59 am

    My point is before you accuse someone, you better be able to prove it. Let’s not forget that Norwalk is a small city where most of the people know each other. Anyone purchasing property in that development area probably knows someone in Redevelopment or on the Council. Therefore, anyone who knows anyone in any of those positions and purchases property could be accused.

  • 23 High Road // Feb 23, 2008 at 12:24 pm

    Someone said to me that unethical behavior among elected officials is so common that they don’t even consider it unethical anymore. Just “the way we do things around here.” I think 22 just proved it.

  • 24 a parent // Feb 23, 2008 at 12:37 pm

    Bottom line is the Globe should be refurbished and used for the Arts. Do you realize how many kids we could get off the streets and into something constructive if Norwalk or someone would just provide them with programs that interest them. Most kids express themselves through music and art. Lets give them an avenue other than guns, knives, gangs and violence. There is a great program we heard about at the NNHT meeting that would be a real first move towards this goal.

  • 25 anonymous // Feb 23, 2008 at 12:41 pm

    Who is going to pay for it?

  • 26 Anonymous // Feb 23, 2008 at 2:10 pm

    Perhaps thats what Norwalk businesses and our leaders might want to look at. There are many companies that have funds put aside each year for just this reason. What else would you want the Globe Theater used for? why have redevelopment if we aren’t going to include programs for the kids? Who do you think will be using the redevelopement in years to come? Hopefully the kids will be able to grow up and live in Norwalk and benefit from what is put in place now.

  • 27 wait a minute // Feb 23, 2008 at 5:37 pm

    #18,
    Yeah, if I had exclusive insider info from my brother-in-law I could have bought it in a hurry so I could make a killing later on! That’s the beauty of sleazy backroom deals in America!

    This is pathetic.
    And the Kydes family are laughing all the way to the bank.

  • 28 anonymous // Feb 23, 2008 at 6:56 pm

    Give it up. It was a wild baseless accusation without a shred of evidence and totally blown out of the water at the hearing.

  • 29 anonymous // Feb 23, 2008 at 7:10 pm

    How sweet is this deal for the Kydes? Get the property cheap. Hold POKO hostage for the piece until you get your overblown price. Have the City pay for your legal defense. And claim that you’re being persecuted. Good one. Laughs on the taxpayers.

  • 30 anonymous // Feb 23, 2008 at 7:41 pm

    It was investigated and no factual basis for your accusations. Poruban was flat out wrong and was proven wrong. Now you are trying to keep the false rumor going.

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