Update Jan. 8, 2024: Sparks City Council members voted unanimously against a settlement agreement with former Sparks Fire chief Mark Lawson. Council members had no further discussion on the matter.
Original Story, Jan. 2, 2024
The Sparks City Council on Monday is scheduled to vote on settling with the former Sparks Fire chief the city fired in late 2022. Then-City Manager Neil Krutz terminated Mark Lawson after it was revealed Lawson was facing criminal charges for alleged steroid sales and distribution.
Lawson had been on the job less than two weeks. The city may be on the hook for the entire amount if the council approves the settlement.
“If City Council accepts the settlement demand, the City would be responsible for paying at least $300,000, which is the City’s self-insured retention amount applicable to these claims,” the city’s meeting agenda notes. “Depending on the structure of the settlement agreement and the excess insurance carrier’s input, the City may be responsible for paying the full settlement amount of $600,000.”
Lawson sued the city in March “for the economic and reputational damages that the City and Mr. Krutz inflicted upon Mr. Lawson,” according to Lawson’s attorney, Jason Guinasso. “As you are aware, this lawsuit was filed because Mr. Krutz—acting far beyond the scope of his duties as the City Manager—defamed Mr. Lawson on YouTube. Specifically, Mr. Krutz made the decision to film and publish a video accusing Mr. Lawson of egregious criminality.”
The settlement proposal notes that Krutz and Assistant City Manager Alyson McCormick discussed how to fire him, and Krutz suggested posting a YouTube video “to share just with [Sparks Fire Department] employees letting them know and why.”
Krutz said in the video, which was eventually deleted, that he requested Lawson’s resignation, and Lawson granted it.
But that was not true, Lawson said. He sued the city over the matter last year.
“[Krutz] communicated to the public that Chief Lawson had committed a horrific crime, such as murder or domestic abuse, or engaged in an act of moral turpitude,” Guinasso said. “Krutz’s statements about Chief Lawson conclude without any evidence to support the allegations…”
Guinasso, in a January 2023 letter to the Sparks City Attorney, requested $441,000 to settle the lawsuit. Guinasso, in December, upped that to $600,000 and requested it be placed on a Sparks City Council meeting agenda.
“We are prepared to take this case to trial if settlement is unsuccessful,” he added.
The Sparks Council in June voted to appeal a district court ruling in the matter to the state supreme court. In the months following Lawson’s termination, Krutz was also fired. Three separate law firms have been hired to represent the city in the fallout—two for the Lawson case and a third for matters with Krutz.
Legal fees are costing the city hundreds of dollars per hour. The council and mayor can accept or reject the settlement. They can also vote to lower the settlement amount.
Lawson also recently announced he was running for the Washoe County Board of Commissioners, challenging Clara Andriola. He is facing four felony charges, and a hearing is scheduled for Jan. 31, 2024, in Sparks Justice Court.
