COURTS RULE IN CITY OF SEALY’S FAVOR IN LAWSUIT BY FORMER CITY MANAGER

  

The courts have sided with the City of Sealy in a lawsuit filed by former city manager Lloyd Merrell in March 2021.

Merrell filed suit after serving as city manager from February 2018 to January 2021, and after announcing his resignation at a public meeting in December 2020. 

Merrell claimed the city and Mayor Carolyn Bilski breached his contract and committed common law fraud, fraud by non-disclosure and civil theft.  He argued that he was wrongfully criticized by Bilski and the Sealy City Council for economic troubles the city experienced during the COVID-19 pandemic. 

The city won the initial decision in trial court, which was followed by an appeal from Merrell.  The appellate court also ruled in favor of the city.

In a release from the city announcing the outcome, Bilski said, “After nearly two years, the City is pleased it prevailed in both courts.  We take seriously our positions as public servants and the trust the citizens have in us.  We remain focused on delivering essential services and on Sealy’s continued growth and quality development.”

At the time of Merrell’s announcement that he would resign effective February 1, 2021, the city council confirmed his resignation and said he would be placed on administrative leave and paid his remaining salary, along with unused vacation and sick time, through January 31, 2021.  The city council then instructed Merrell to sign a separation agreement, remove his personal belongings from Sealy City Hall and return his city-issued items.

Merrell declined to sign the separation agreement, saying the city’s actions had served as effective termination of his services.  He demanded severance pay in addition to the compensation through the end of his contract.  The city council unanimously accelerated Merrell’s last date of employment to January 5, 2021.  In his lawsuit, Merrell claimed this was so the city did not have to pay the entire amount he was owed. 

Following Merrell’s departure, Warren Escovy, Sealy’s former planning and community development director, was hired as city manager in April 2021.  He later resigned in December 2021 to take a new position as a city administrator in Blanco. 

Kimbra Hill, former executive director of the Sealy Economic Development Corporation, currently serves as city manager after her appointment in January 2022.