On Oct. 14, arguments were heard before Circuit Judge James Morgan in the case of a former manager who sued the Village of Islamorada over a vote that led to his contract being nonrenewed by the council in July 2023.
The bench trial took only a day, and now the sides will prepare their legal briefs before Morgan renders his decision next month.
On May 14, 2024, a 153-page complaint was filed by counsel for Ted Yates. From Twinsburg, Ohio, Yates was hired by the village Aug. 1, 2022 and let go roughly a year later following a tense meeting that ended with the council voting 3-2 not to renew his contract.
The complaint states that then-councilman Henry Rosenthal had a conflict of interest and should have abstained from voting on the contract nonrenewal. Had Rosenthal recused himself, the vote would have been 2-2 and the move for nonrenewal wouldn’t have been approved. Yates is seeking damages in excess of $50,000.
Before Yates was let go, Rosenthal was working with Dan Gulizio, then development services director, in hopes to get a former church property’s zoning changed so he could operate a dinner theater. Gulizio was ultimately let go from his employment from the village by Yates.
According to the complaint, Rosenthal threatened Yates’ employment as a result of his move to fire Gulizio. On July 17, 2023, a special meeting requested by Rosenthal was held on Yates’ contract renewal. Rosenthal seconded a motion of nonrenewal; the vote was 3-2 to move on from Yates.
An ethics case was ultimately filed against Rosenthal for trying to manipulate the village zoning process by requesting the planning director, Jennifer DeBoisbriand, to poll the council and see if fellow members would be receptive to a rezoning request. An investigation by the State Ethics Commission resulted in $2,500 in fines, a public reprimand and censure.
Rosenthal denied efforts to fire or not renew Yates as a result of his decision to fire Dan Gulizio on May 30, 2023. Yates, at the July 17, 2023 meeting, said he believed comments by Rosenthal to him weeks before Gulizio’s termination were indeed a threat to his job.
The defense for the village says neither the allegations nor the exhibits attached to the complaint demonstrate the required “special private gain or loss” necessary to preclude Rosenthal’s vote under section 112.3143(3)(a). The village hired Eric Stettin and Erica Hausdorff, of Weiss Serota, to defend the case.
In July, the court ordered that Yates wasn’t terminated without cause. Rather, he completed the remainder of his contractual term, received the compensation under the employment agreement, and was terminated via nonrenewal. But the question remains whether Rosenthal should have recused himself for having a conflict of interest.
With the case going on for two-plus years, the village’s insurance coverage limit of $100,000 was reached, meaning the village will bear the legal costs from Oct. 1 and moving forward. As of Oct. 20, the village has incurred $28,290.02 in legal expenses in the Yates vs. Islamorada case.
