San Diego Officials Eye Settlement in Racial Discrimination Case

News Summary

City officials in San Diego are considering a $146,000 settlement related to a racial discrimination lawsuit filed by former COO Eric Dargan, who was terminated amid budget deficits. Dargan claims he faced racial discrimination and did not receive severance pay as per his contract. The proposed settlement exceeds the amount he initially sought. City officials maintain that his dismissal was due to operational restructuring, not race-related issues, as they prepare for discussions impacting future discrimination policies and employee rights.

San Diego city officials are poised to consider a $146,000 settlement in a racial discrimination lawsuit filed by former Chief Operating Officer Eric Dargan, who was terminated earlier this year. This decision comes in the wake of significant budgetary challenges faced by the city, which reported a $258 million budget deficit.

Dargan’s termination was part of a larger initiative led by Mayor Todd Gloria to reduce bureaucracy and restructure city operations to address fiscal constraints. While officials have maintained that Dargan’s dismissal was justified and for cause, the lawsuit alleges that he was unfairly discriminated against because of his race as a Black individual. Dargan claims he did not receive the three months’ notice or severance pay specified in his contract.

The proposed settlement amount surpasses the sum of the severance agreement Dargan initially sought, which was approximately $95,000. City staff have indicated that agreeing to the settlement is a business decision intended to efficiently resolve ongoing litigation rather than an admission of liability.

Details of the Lawsuit

Dargan filed his lawsuit shortly after his firing, asserting that the city failed to uphold its contractual obligations concerning his termination. He was previously compensated a total of $380,000 for his work in 2023. The legal action also highlights allegations that the city did not take adequate measures to prevent discrimination against him.

According to Dargan’s attorney, the lawsuit could have been avoided had the city honored the severance terms in his contract. Meanwhile, city officials have repeatedly stated that Dargan’s termination was solely for operational reasons and not racially motivated. They assert that there is no substantiated evidence in Dargan’s personnel file—reportedly free of negative evaluations prior to his termination—to suggest his performance warranted such treatment.

Contextual Background

Dargan was appointed as COO in 2022, having been recruited from a similar position in Houston, Texas. His responsibilities included overseeing city operations amidst an economic landscape that has prompted ongoing adjustments in San Diego’s government structure. Gloria has been vocal about the need for budgetary savings, asserting that the elimination of the COO position aligns with broader efforts to mitigate the city’s financial challenges.

A case management conference related to Dargan’s lawsuit is set for August 28, although the city has not yet filed an official response in court. The outcome of this lawsuit and the potential settlement will likely have implications for how the city addresses similar issues in the future, especially in light of the claims of discrimination and breach of contract raised by Dargan.

As the City Council prepares to debate the proposed settlement, discussions are expected to center around the broader implications for city policies related to discrimination, employee rights, and fiscal responsibility.

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Additional Resources

• San Diego Union-Tribune: San Diego Poised to Pay Former COO Almost $150K in Disputed Firing
• NBC San Diego: San Diego COO Fired Without Cause Faced Discrimination Lawsuit
• San Diego Union-Tribune: Former Chief Operating Officer Sues San Diego for Breach of Contract, Discrimination
• San Diego Union-Tribune: Lawsuit Alleges UnitedHealth Fired San Diego Nurse Over Palestine Stickers
• Encyclopedia Britannica: Discrimination Lawsuit