County accused of playing politics

COEUR d'ALENE — An attorney representing Kenneth Stone in a breach of contract suit claims Kootenai County officials, through their lawyer, have delayed proceedings to avoid political fallout.

Stone, a former deputy prosecutor for the county who reached a settlement in a 2013 wrongful termination lawsuit against the county, is being represented by Kathlene Kolts in a case seeking attorney fees and damages because of a series of articles that ran in The Press uncovering details of the agreement. Those details, according to documents filed by Kolts, could only have been disclosed by county officials and their representatives, which constitutes a breach of the confidentiality agreement the county itself insisted on during mediation.

And the matter, which Kolts said could have been settled shortly after the articles began running in April 2014, is still ongoing.

"Defendant and its attorney's actions are bogus and disingenuous attempts at getting a delay of a public trial before the political primary and/or local caucuses determine the Republican candidates in Kootenai County, including the current BOCC," Kolts wrote in a declaration filed this week. "The testimony elicited at their depositions makes it clear that Kootenai County has serious defects in its management of legal matters, which are controlled by the BOCC and the Prosecuting Attorney."

On Nov. 12, 2013, a mediation session focused on a wrongful termination suit filed on behalf of Stone against the county and county officials. The parties, including the county's insurance provider ICRMP, agreed to a settlement that included $315,000, employee benefits, and a confidentiality agreement.

However, according to the breach of contract suit filed last month, articles written by Press reporter Taryn Thompson began appearing in the newspaper in April 2014, detailing the terms of the agreement. Kolts wrote that those details could only have been provided by the county and ICRMP, and that Stone and his wife, Saviraj Grewal, contacted the county to learn why the clause had been breached.

"In response, the county insisted that even though it had breached the settlement agreement, plaintiffs were still bound by it," Kolts wrote. "It continues to insist on confidentiality to this day."

Kolts went on to state filing the civil lawsuit was necessary to "cure the breach, relieve the plaintiffs of the now upended confidentiality clause, pay for damages and reimburse them for attorneys' fees.” In the document filed this week, Kolts details more than a year of instances where she claims Scot Nass, an attorney representing the county, acted to delay proceedings in the case.

Most recently, she wrote that in January she met with Nass and Kootenai County Commissioner Dan Green to discuss a potential settlement. The discussion was followed by Kolts submitting a settlement offer on Jan. 12.

More than a month later, Kolts wrote, she was contacted by Nass with a counter-offer from the county, which included another confidentiality agreement.

"Mr. Nass told me point-blank that this new confidentiality clause was to be imposed against plaintiffs until June 1, 2016 because the County did not want adverse publicity until after the Idaho Republican primaries and/or caucuses concluded," Kolts wrote in the document. "Mr. Nass stated in his email of Feb. 26 that the offer itself was 'confidential,' which I did not agree to, and in fact, rejected. This is a case involving public officials, public policies, and public monies."

Negotiations halted, Kolts wrote, and on March 4, Nass began "transmitting a barrage of paper" that included a motion to delay the trial.

Emails sent by Kolts to both Nass and county officials are included with the court documents. One of the messages included, which was sent by Green on Jan. 12, states the following:

"Kathy; Just as fyi..... anything coming to this email address may be subject to a Public Records Request. I will be speaking with Scot (Nass) and then updating the BOCC."

Green declined to comment on the case. Nass did not return a phone call seeking comment on Friday.

A pre-trial hearing has been scheduled for Tuesday in Kootenai County District Court.