from: http://www.azcentral.com/news/articles/0502irvin02.html
Irvin libel settlement costs state $441,000
Jack Kurtz / Republic file photo
Jim Irvin recently hired a high-powered law firm and a public relations firm at his own expense to deal with any fallout from his legal troubles.
But plaintiff puts total at $621,000
Max Jarman
The Arizona Republic
May. 2, 2003 12:00 AM
The state has settled a lawsuit that further increases its financial losses stemming from Corporation Commissioner Jim Irvin's actions at the agency.
State officials revealed Thursday that Arizona this week settled a claim brought by a former commission employee who said Irvin libeled him during a dispute at the agency in 1999.
According to Frank Hinds, Arizona's risk manager, the state agreed to pay $441,000 to settle the case, including $227,000 to Irvin's lawyers, $14,000 in miscellaneous expenses, and $200,000 to the plaintiff, Jim Fisher, who was an aide to former Commissioner Tony West at the time.
But Fisher, who now works in the utilities division, said his share is more than $380,000, which would bring the total to about $621,000.
It was the second risk-management payout generated by Irvin this year.
Scott Smith, a spokesman for the Arizona Department of Administration, said the agency also has paid $4.6 million in legal bills so far to defend Irvin in a business interference suit by Houston-based Southern Union Co. The case resulted in a $60 million jury judgment against Irvin that he has appealed; the state is paying the costs of the appeal.
Smith said the payments may be the largest ever made from the state's indemnity fund, which covers legal fees and judgments for public officials sued for actions related to their duties.
"It's very unusual for us to make payments like this as a result of an elected official's behavior," Smith said.
Irvin issued a written statement: "I support the state's decision to settle this claim under its statutory authority. I am committed to putting this episode behind us, and I will work with Mr. Fisher in our official capacities in the best interests of the citizens of Arizona."
Irvin recently hired a high-powered law firm and a public relations firm at his own expense to deal with any fallout from his legal troubles.
Arizona Corporation Commission Chairman Marc Spitzer, who has called for Irvin to resign because of the judgments, said the cases "unfortunately test the limit of indemnification provisions for elected officials."
"At some point you'd think they'd test the limit of the Legislature," he added.
Spitzer and the three other commissioners have asked the Legislature to begin impeachment proceedings against Irvin, saying they lack authority to remove him from office. But Spitzer said the Legislature is preoccupied with the budget and hasn't taken any action.
Speaker of the House Jake Flake was unavailable for comment on the matter Thursday.
Fisher, whom Irving criticized in a press release in 1999 that triggered the lawsuit, said he feels vindicated by the settlement and by the jury award in the Southern Union case.
"It's been hell," he said of the three-year legal battle.
Fisher sued Irvin in 2000 after the commissioner issued a press release in response to being sued by Southern Union, which claimed Irvin improperly tried to steer the sale of Southwest Gas to Oneok Inc. Fisher had provided Southern Union, a rival bidder for Southwest Gas, with an affidavit of Irvin's actions in behalf of Oneok.
Irvin's release said that Fisher had a "history of wrongdoing at the commission" and that his "past actions cast serious doubt on his credibility as a witness for Southern (Union)."
Fisher said the remark ruined his reputation.
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