The City of San Juan Bautista and a former city finance clerk
have reached a settlement agreement of $22,500 in a civil rights
lawsuit for the alleged malicious prosecution by former city
manager Robert Smith.
The City of San Juan Bautista and a former city finance clerk have reached a settlement agreement of $22,500 in a civil rights lawsuit for the alleged malicious prosecution by former city manager Robert Smith.
“It was malicious,” said Paul Breen, an attorney representing Pearl Cotti, the Mission City’s former finance clerk. “This was an act of depravation of liberty by a public entity.”
Smith, who was employed by San Juan Bautista from 1998 until he resigned in January 2001, filed charges against Cotti accusing the former clerk of misappropriating public funds to pay for medical benefits for her family.
The allegations led to criminal charges against Cotti, which were dismissed after a memorandum allegedly signed by Smith surfaced that authorized the benefits for Cotti.
Patrick Whitnell, an attorney representing San Juan Bautista, said the document with Smith’s signature was questionable.
“Smith has always said it was not his handwriting,” Whitnell said. “And we still say it is not his handwriting.”
At the time the charges against Cotti were filed, Smith was being was investigated by the San Benito County Grand Jury and Cotti had been called as a witness against him.
Smith was also being sued in small claims court at the time for not paying back wages to employees.
Breen said no indictment was handed down against Smith, but Cotti felt vindicated of the accusations.
“She is doing fine and certainly glad it is all over and wants to put the whole matter behind her,” Breen said.
Cotti, a Hollister resident, is working part-time as a bookkeeper, and stated after the charges against her were dismissed, she vowed that Smith would not get away with it.
“My blood still boils whenever I even think about it,” she said.
Smith has moved out of the area and is working in the private sector.
“The city has no intention of going after Robert or aware of any legal basis to seek reimbursement from him,” Whitnell said. “The purpose of the settlement was to bring a final resolution to all this and not to point fingers. But I guess she still wants to try her case in the press.”
San Juan Bautista City Manager Larry Cain said the city decided to settle the case with Cotti so it would not additional spend funds in defense.
“The city is insured against this type of risk,” Cain said. “We have paid our $1,000 deductible and the rest is covered by our insurance.”
