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Ex-PUD treasurer's lawsuit set in Grant County

by Lynne Lynch<br>Herald Staff Writer
| March 28, 2008 9:00 PM

Gerde seeks $4 million

EPHRATA - A $4 million wrongful termination lawsuit filed by Grant County PUD's former treasurer will be addressed in court May 15 during a status conference in Grant County Superior Court.

A trial date had not been set on Wednesday in former Treasurer Nick Gerde's case, which accuses the utility of age discrimination, breach of contract and defamation, according to court files.

The PUD responded in court documents that Gerde's claims were untrue and the utility "had good and just cause to terminate (Gerde's) employment."

But Gerde's lawsuit alleges the utility wrongly fired him in February 2007 after he failed to receive little or no negative feedback for six months after a positive June 2006 review, court documents state.

There's disagreement between both sides that an "action plan" to address Gerde's perceived performance problems was accepted, court documents indicate.

The suit also accuses the utility of age discrimination after Gerde was later replaced by Jim Bunch, a longtime PUD employee.

Bunch, at more than 50 years old, is more than a decade younger than Gerde, according to court documents. Gerde's age wasn't immediately available Thursday from his attorney's office.

When Gerde was fired, the PUD issued a press release that stated that "certain aspects" of his performance were "unacceptable."

Gerde's suit alleges the PUD's General Manager Tim Culbertson ordered Gerde to leave a commission workshop to complete comments to a memo of Culbertson's.

Being asked to leave in front of the workshop participants, including the commissioners, the entire management team and Gerde's direct supervisors was "humiliating" to Gerde, court documents state.

The PUD allegedly violated its employment agreement with Gerde by failing to provide fair performance evaluations and specifics of alleged performance problems. Gerde also wasn't allegedly given the chance to correct perceived problems and fired without cause when cause was required, court documents say.

The case, which was originally filed in November in King County Superior Court, was moved to Grant County Superior Court on March 10.

Gerde's justification to have the case heard in King County was because the PUD rented an office space in SeaTac for a telecommuting employee. The utility replied in court documents that the temporary accommodation for the employee didn't constitute a "facility" for the PUD.

Gerde was also concerned Grant County jurors would be "reluctant" to rule in his favor "for fear that a judgment will increase their own power rates."

"Gerde's supposition regarding juror perception also defies common sense and undisputed facts," the PUD responded in court documents.

The PUD's annual revenues are over $150 million and the utility has more than $50 million in reserves and maintains a litigation reserve of $1 million, according to court documents.

Two former PUD employees have recently received settlements from the utility.

Former General Manager Don Godard paid the PUD $50,000 earlier this month in a settlement agreement after he resigned in 2004.

His resignation came after the state auditor's office released a draft report listing problems with contracts between Grant PUD and Benton REA and other entities.

The auditor's office found that $1.2 million was paid to allegedly set up Benton REA as a retail Internet provider. State law doesn't allow public utility districts to provide retail Internet service.

Steven Beckett, a former PUD fiber employee, was paid a $150,000 settlement in September as part of a wrongful termination case.