If the Memphis City Council was a stockbrokers firm, it’s likely that the transactions with former Memphis Light, Gas & Water president Joseph Lee III would have its clients scratching their heads.The council essentially invested $200,000 to investigate Lee’s alleged preferential treatment of former councilman Edmund Ford. Another $426,422 in legal bills accrued during the unsuccessful pursuit of a federal case against Lee.
Now, the council must decide whether to sign off on the payment of those legal bills. If they refuse, there apparently is the possibility of incurring even more of a liability should Lee file a claim for damages.
So in a nutshell, do you bail out at $626,422 or risk getting even closer to a $1 million debt.
Although MLGW has agreed to pay its former utility chief’s legal fees, the council will decide whether or not to reimburse Lee when it convenes Oct. 7.
“It is my understanding that Mr. Lee has 11 months to file a claim against MLGW and the city for substantial damage,” Councilman Harold Collins said.
Seven votes are needed to pass the resolution.
The earlier $200,000 payment went to the law firm of Glanker Brown to investigate Lee’s alleged preferential treatment of Ford. Lee’s subsequent indictment on bribery charges last year caused a media stir that, according to Lee, has tarnished his image and caused him to lose wages totaling more than a million dollars.
Federal prosecutors dropped the case against Lee, but not before his legal bills mushroomed to $426,422. The law firm of SpenceWalk PLLC represented Lee from February 2007 to June 2008.
Collins, one of the council’s newest members, said he hasn’t decided how he’d vote.
“I’m going to wait until I get everything on the record so I can make an informed decision,” he said.
Lee has not commented on the council’s upcoming vote despite hearing the good news that the council’s MLGW committee voted 5-3 in favor of paying his legal bills.
“MLGW entered into an agreement,” Spence said. “They said they would pay it. The board approved it. There’s no dispute between the two parties of the contract.”
Lee had filed a breach of contract lawsuit against MLGW, but dropped it recently after the utility agreed to honor its contractual agreement to pay his legal fees.
“I hope we’ll have seven votes and be able to move on,” said Councilwoman Barbara Swearengen Ware, chairwoman of the MLGW committee. “If we approve it, all we’d be doing is approving a request from MLGW’s board.”
Councilwoman Wanda Halbert, one of the five African-American council members who agreed to reimburse Lee, said the amount of reimbursement is fair and equitable. In her opinion, the whole ordeal has been politically motivated from the get-go.
“It’s disappointing that the vote went down racial lines,” added Ware, pointing out that three white council members voted against paying Lee’s legal bills.
Lee has said he wanted to get on with his life. He left the utility in May of 2007 and is now three weeks into a new job as director for the Division of Park Services.