Part 5: Lawsuits and Casino Mitigation

HOLYOKE — Heather G. Egan refused to say whether a whistle-blower lawsuit about Mayor Alex B. Morse's proposed License Board changes is one she would have filed against the city had the separation agreement lacked a payment.

In fact, it appears the two sides might have come away with different opinions about why the separation agreement and the accompanying $45,000 payment were executed.

A source with knowledge of the agreement's details said the fear was Egan would argue that the city's inability to accommodate her caused a chronic medical condition to get worse — so, the decision was made to agree to a payment to avoid such a lawsuit. Such an impasse might have been resolvable otherwise had relationships not deteriorated, the source said.

Egan said again that a leave she had planned to take in the spring of 2014 had nothing to do with her resignation as city solicitor or the separation agreement executed between herself and Morse, but she declined to elaborate about the leave.

Two officials have previously alluded in stories published by The Republican and MassLive.com to "medical" matters having a role in the Morse-Egan separation agreement. One was Assistant City Solicitor Kara Cunha in June saying some documents the news outlets sought were off limits because they constituted "personnel and medical files or information."

The other reference to medical matters having a role in the Morse-Egan separation agreement came from state Supervisor of Records Shawn A. Williams in a story published in September. In an Aug. 20 letter to Cunha, in response to an appeal by The Republican and MassLive of a public records request denial, Williams said certain records must be released but among those the city could withhold were Egan's personnel and medical files.

Another source said Egan required that the separation agreement include a payment in return for her agreeing not to file a whistleblower lawsuit over changes Morse was planning for the License Board. Egan believed the changes included ousting a License Board clerk from the National Association of Government Employees and that such a step was illegal, the source said.

Morse said he was unable to discuss which potential lawsuits from Egan might have concerned him, bound by the nondisclosure terms of the separation agreement.

Egan, again, wouldn't discuss the specific lawsuits she might have filed had Morse declined to provide a separation agreement with payment, though she did note the agreement included a long list of potential lawsuits.

The 10-page separation agreement – drafted by thelaw firm Sullivan, Hayes & Quinn – includes a list of 33 claims, or kinds of lawsuits, Egan agreed not to file against the city. The list includes Title VII of the Civil Rights Act of 1964, the Family and Medical Leave Act, the Americans with Disabilities Act of 1990, the Equal Employment Opportunity Act of 1972 and lawsuits under any state or federal whistleblower statute.

Casino talks

Egan was proud of her work with Morse in the casino mitigation talks with MGM Resorts International, a source said. The city received a pledge of jobs, $50,000 up front and approximately $85,000 annually from MGM.

Egan's boss was pleased with her work on the MGM deal, as well, as Morse said in a Jan. 13 press release: "This agreement would not have been possible without the hard work of City Solicitor Heather Egan."

What concerned Egan, a source said, was the participation in the MGM talks of Casey, a former aide to state Rep. Aaron M. Vega, D-Holyoke, and founder of CRUSH, Citizens for the Revitalization and Urban Success of Holyoke. Casey wasn't a city employee or officially representing the city at the time of the meetings with MGM. But he was in the negotiations and included in emails about mitigation details before the Holyoke-MGM agreement was made public later in January, a source said.

An agreement to refrain from publicizing such concerns is partly why Egan insisted on a separation agreement that included a payment, a source said.

Egan said she was unable to comment on the assertion that Casey's involvement in the casino mitigation discussions was enough of a concern that it became partly why she required a separation agreement include a payment.

"I cannot comment on whether or not the mayor involved Casey in privileged negotiations, or any other forum, before becoming an employee, as this would violate the attorney-client privilege," Egan said.

Morse said he was unaware that was even a concern of Egan's until questioned by The Republican / MassLive.com on Dec. 9, 2014.

"First time I heard that. There would be nothing wrong with that. It's true. He did participate and was effective. I invite people to meetings everyday, some are city employees, some aren't," Morse said.

Casey said his participation in the MGM meetings was during a transition period between accepting the job offer from Morse and starting the job as chief of staff.

"The mayor invited me as he felt it would be important to have a full understanding of the surrounding community status. My role was as an observer," Casey said.

"I'm at a loss to understand how anyone would find it inappropriate for a soon-to-be employee to sit in on a meeting at the request of their new employer. Especially one involving an important topic they would have to be well versed in," Casey said.

Egan never raised Casey's participation in the MGM talks as a concern, at the time or later, he said.

One point Egan was clear about was her lack of fondness for Sullivan, Hayes & Quinn.

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Next chapter: Port in a Storm, Part 6

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