EDITOR'S NOTE: This is updated from an earlier version.
COVINGTON, Ga. — Two commissioners said they were ready to testify in court about being not guilty of discriminating against two former appointed officials despite the county’s insurance carrier making a “business decision” to settle the claims for more than $1 million.
Also, the same former officials, Lloyd Kerr and Megan Martin, agreed not to take part in any class action lawsuits and not seek employment again with the county government as part of settlements of their discrimination and breach of contract claims.
Copies of the signed agreements showed Kerr, the former county manager, was awarded $575,000 and Martin, the former county attorney, was awarded $500,000 in the settlements reached Aug. 10 and Aug. 11.
The county’s liability insurer, Charter Oak Fire Insurance Co., will pay the settlements and the county admits no liability in connection with the claims, according to the agreements The Covington News received through an open records request.
Both had filed ante litem notices with the Newton County government through federal court in January. An ante litem notice detailing specific claims against a government agency is required to be sent to the agency before a lawsuit is filed.
Kerr’s $575,000 settlement will give Kerr $373,745.36 and $201,254.64 to Kerr’s attorney, Ed Buckley.
The payment to Kerr represents $93,436.34 in back pay and $280,309.02 in compensatory damages, the settlement stated.
"In addition, Chairman (Marcello) Banes will provide a letter of reference for Mr. Kerr," it stated.
Martin’s $500,000 settlement amount gives her $325,000 — $81,250 in back pay and $243,750 in compensatory damages — and her attorney $175,000, according to the report. Buckley also represented Martin.
The Newton County Board of Commissioners did not renew Kerr's contract at the end of 2021 after almost six years in the position. It hired Jarvis Sims as interim county manager earlier this year.
Kerr claimed breach of contract for the county not conducting a salary study of other counties before setting his salary.
Both Kerr and Martin also claimed employment discrimination by the Newton County Board of Commissioners.
Martin was part of the Cumming-based Jarrard & Davis law firm under contract with the county government and was assigned to represent it for six years before she was not hired for a newly created position of in-house county attorney in 2021.
She parted ways with the law firm soon afterward, and among her allegations in her claim was that Sanders contacted the firm about Martin’s application for the position in an attempt to have the firm fire her.
The in-house position has never been filled and Jarrard & Davis still represents the county in legal matters.
Both also made individual claims of racial discrimination by the Board's three Black commissioners, including J.C. Henderson, Demond Mason and Alana Sanders, and alleged each had made statements publicly and on social media about their desires to hire Black employees for the two positions.
However, the insurance company ended up paying the settlement despite none of the claims being part of a formal lawsuit or proven in court.
Martin filed her ante litem notice with the U.S. District Court in early January stating she intended to sue the Board of Commissioners — claiming Henderson, Mason and Sanders discriminated against her on the basis of age and race and Sanders illegally intervened in her employment contract.
Buckley stated in the ante litem notice letter sent to the Board on Jan. 5 that Martin filed the same charges of age and racial discrimination with the U.S. Equal Employment Opportunity Commission Jan. 4.
Martin, who is white, stated in the notice that she applied for the in-house attorney position with the assurance from all commissioners except Alana Sanders that the job was "created for Ms. Martin, and that she should have the position if she wanted it."
“Ultimately, the choice for the Commission was between Ms. Martin and an African-American female candidate over 40 who specialized in real estate sales and had no relevant experience. Ms. Martin was undoubtedly more qualified given her six years of experience serving Newton County," the notice stated.
“Nevertheless, the county offered Ms. Martin the job for a six-month contract only. The offer was designed to be rejected since the county knew that Ms. Martin would have to leave a stable, permanent job with a law firm for the uncertainty of a six-month appointment,” it stated.
In addition, after Martin initially applied for the position, she said Sanders and Newton resident Denise Barnes contacted Jarrard & Davis "and disparaged (Martin) to her former employer," the notice stated.
Meanwhile, another commissioner, Demond Mason, expressly stated he wanted a younger person to fill the new legal department position — rather than Martin who is 42 — in violation of federal age discrimination laws, the notice claimed.
It also stated Sanders and Mason “have a history of publicly advocating for all positions of leadership within the county to be held by African-Americans, which is an unlawful, racially discriminatory hiring practice.”
"Both commissioners have posted videos on social media taking that position, making clear they harbored racial animus in opposing hiring Ms. Martin, the most qualified candidate who applied for the county attorney position, on the basis of her race."
Kerr, who is white, stated in a complaint to the Equal Employment Opportunity Commission that Sanders and Mason had "posted videos on social media ... making clear they harbored racial animus in opposing my holding the position of county manager and voting to non-renew my employment."
"Commissioner Sanders even made a recording where she specifically addressed the county manager position, noting she wanted to do a national search for a county manager with the intention of reflecting the changing demographics of the county," Kerr's ante litem notice stated.
Kerr was hired as interim county manager in early 2016 and promoted to the permanent position later that year. The Board in 2019 unanimously voted to renew his contract in 2019 for three years.
Buckley said the action not to renew his contract based on race violated part of the federal Civil Rights Act.
"Mr. Kerr served as the county manager for Newton County for nearly six years. Despite Mr. Kerr’s excellent performance and dedication to his job, on Nov. 2, 2021, the Board voted not to renew his contract for an additional term. Accordingly, Mr. Kerr’s contract expired on Jan. 1, 2022.
"Ultimately, the decision not to renew Mr. Kerr’s contract is merely an extension of the unlawful racially discriminatory policies and practices that the Board of Commissioners has fostered."
Newton County also did not increase Kerr's salary to the level other area county managers make as required in his contract, the notice stated.
Kerr's contract required an increase in pay from $137,500 because it was below the market rate for county managers based on a study showing five area county managers earn between $175,000 and $200,500. The notice stated the county breached Kerr's contract because it did not raise his pay.
"The county never proffered any reason for breaching Mr. Kerr’s contract, leaving the only conceivable explanation to be aligned with the reason for his nonrenewal: race discrimination and retaliation," the notice stated.
Mason said in a statement he had "always denied, and will continue to adamantly deny, the false and malicious allegations raised against me by Mr. Kerr and Ms. Martin."
"The insurance company representing Newton County has decided to settle the employment discrimination claims raised earlier this year by Lloyd Kerr and Megan Martin. I have always denied, and will continue to adamantly deny, the false and malicious allegations raised against me by Mr. Kerr and Ms. Martin."The settlement of these matters was not approved by me nor the Board of Commissioners and our approval was not needed because the County’s insurance company is bearing the entire cost of both settlements. Newton County’s taxpayers’ dollars WILL NOT be funding any of these settlements.
"My understanding is that the insurance company made this decision in order to avoid potential legal expenses and that insurance companies are reluctant to carry suits to trial, even when they believe in their clients’ side of cases, because lawsuits are lengthy and expensive.
"I do not agree at all with the insurance company’s decision and looked forward to having the opportunity to disprove these allegations at trial," Mason said.
Sanders also mentioned the insurance company's involvement in a statement she issued recently on her official Facebook page.
She said she continued “to deny the false allegations lodged against me by Mrs. Martin and Mr. Kerr.”
“The settlement of their claims merely reflects a business decision by the county’s insurance company and is by no means an admission of any wrongdoing on my part,” Sanders wrote to her Facebook followers Aug. 18.
“Per the ante litem, I was accused of posting videos on social media regarding discrimination, which have not been produced. As a Christian, mother, and a person that the people put in place to serve this county, I would have preferred to prove my innocence to the people of Newton County in court.
“The insurance company exercised its authority to settle the claims without my consent because it is funding 100% of the settlement funds. I do not agree with the insurance company’s decision, for it does not allow all parties to publicly provide the facts.
“Because this is out of the Board of Commissioners’ hands, I have to accept the decision of the insurance company, and I do not have the authority to override it,” Sanders wrote.
Others named in the notices did not immediately respond to requests for comment.
