The Troutdale city council, along with the city of Troutdale, are considering whether to have the city provide Troutdale city councilor Rich Allen legal fees in defense of a civil lawsuit filed against Mr. Allen. The city's insurance provider already declined to provide coverage for the libel lawsuit against Mr. Allen.
According to a Gresham Outlook article on December 26, 2016,
"Troutdale's insurance provider has declined to provide protective coverage for a libel lawsuit targeting embattled City Councilor Rich Allen.
A review by CityCounty Insurance Services states that Allen "was not acting on behalf of the City of Troutdale … when he authored the newspaper article that gave rise to the lawsuit filed by Eastwind Development.""There is only coverage under the Trust Agreement if the lawsuit is related to actions taken by Mr. Allen in his official capacity as a city councilor," CIS manager Bill LaMarche wrote in an email. "Therefore, CIS cannot defend nor indemnify Mr. Allen in this matter."
Eastwind Development launched a $250,000 defamation lawsuit against Allen on Nov. 17, alleging he knowingly published false information that damaged the company's reputation and smeared the business as unethical."Mr. Allen has no right to expect a blank check from Troutdale residents to defend his egregious behavior. The city of Troutdale should not pay Mr. Allen's lawyers to represent a city councilor engaged in alleged reprehensible conduct.
Mr. Allen's alleged conduct raised in the lawsuit was not performed on behalf of the city. Mr. Allen's alleged conduct raised in the lawsuit was not in furtherance of any adopted city policy.
Payment of Mr. Allen's legal fees would serve only Mr. Allen's private interest and not in the public interest of Troutdale's citizens or the city itself.
I urge Troutdale citizens to contact the city and the city council, and demand that they refuse to pay Mr. Allen's personal legal fees.