Prineville reaches $666,700 settlement with Eric Bush

The city of Prineville has agreed to have its insurance company pay fired police chief Eric Bush $666,701 – the maximum allowed by state law – to resolve a $2.5 million lawsuit he filed over his dismissal earlier this year, his attorney and city officials said Thursday.

“The city of Prineville has elected not to dispute Eric Bush’s claims in court, and will instead pay him the maximum amount allowed by Oregon law,” Bush’s attorney, Roxanne Farra, said in a statement sent to the media, along with a copy of the signed judgement offer filed in Crook County Circuit Court.

Bush was placed on paid administrative a year ago and fired this summer after an independent investigator concluded he misused city “flex time” in his dual role with the city and as a brigadier general in the Oregon Army National Guard. The investigator also found he falsified records, misused city equipment and provided poor leadership of the department.

Bush strongly refuted all of the claims and immediately filed a $2.5 million lawsuit against the city. In August, Crook County District Attorney reported that an Oregon Department of Justice investigation found insufficient evidence to bring criminal charges.

“In response to the discrimination claims filed by Eric Bush, the City of Prineville has offered to ‘allow judgment to be entered against them and in favor of (Mr. Bush) for all damages claimed against them,'” Farra said, quoting from the judgment offer submitted to court last week and agreed to by her as his legal representative.

“Since Oregon law does not allow a local government such as the city of Prineville to pay more than $666,700.00, that is the amount that will be entered against the city,” Farra said.

The city has also agreed to pay Bush’s attorney fees and costs incurred to pursue his claims, she added.

“No amount of money will be able to compensate Mr. Bush and his family for the personal and professional upheaval the city of Prineville has caused, particularly in light of his decades long service to the city, and the fact that the city’s unlawful actions were taken because of his service to our country,” Farra’s statement continued.

“This is a powerful statement, however, about the falsity of the city’s accusations against Mr. Bush, and the shameful conduct which it has now chosen not to defend,” she added.

However, Farra noted that “Mr. Bush’s claim against LGPI continues,” a reference to the lawsuit’s claims and request for damages from the Local Government Personnel Institute, which the city hired to conduct the outside investigation. Farra said the suit still seeks from LGPI about $1.8 million, the remainder of the more than $2.5 million in damages sought originally.

The city issued a news release Thursday afternoon, which reads in full:

“The settlement of Eric Bush’s claim against the city and (police Capt.) Michael Boyd was strongly recommended by the city’s insurance provider and the attorneys hired by the insurance company to represent the city and Michael Boyd.

“The city’s insurance provider is paying 100% of the settlement amount and city taxpayers are not paying any portion of the settlement amount.

“The city was prepared to defend itself and its position in a court of law, but the city had little choice but to follow the recommendation of the city’s insurance carrier and agree to this course of action.

“On the advice of our attorneys, we are not going to comment on Mr. Bush, the investigation into his conduct, the termination of his employment as police chief, or the now resolved litigation.

“We are pleased that this case is now behind us and that we can move forward with new leadership in our police department, and we are confident that the citizens of Prineville will be proud of the direction we are heading,” the city statement concluded.

Former Deschutes County sheriff Les Stiles was chosen by the city earlier this year to serve as interim chief while the process of hiring a permanent replacement was under way. But for now, it appears that has yet to begin.

“At this time we’re not actively recruiting for a new, permanent police chief,” City Manager Steve Forrester told NewsChannel 21 Thursday. “We anticipate to begin that process some time in 2015.”