MACHIAS, Maine — Washington County Manager Renee Gray settled the wrongful termination lawsuit she filed against the county and two of its commissioners for $2,500, and the case has been dismissed.
The U.S. District Court also granted a joint motion from the county and Gray to dissolve the temporary restraining order that Washington County Superior Court issued in July after the commission rescinded Gray’s termination.
According to the settlement agreement, Gray accepted the $2,500 settlement with the understanding that the case would be dismissed and that she would release the county and Commissioners David Burns and Billy Howard from all claims in her lawsuit, including alleged civil rights, whistleblower and labor violations.
In the agreement, Washington County, Burns and Howard deny all liability, and Gray agrees to keep confidential the facts and circumstances of her claims, except when disclosure is required by an attorney or a government authority.
Of the $2,500 settlement, $1,000 compensates Gray specifically for agreeing to maintain confidentiality.
The parties also agreed that if Washington County or its commissioners seek to suspend Gray without pay or terminate her employment as county administrator, they must follow state‑required procedures, including written notice and a public hearing.
The agreement further requires the county to pay $7,000 in Gray’s legal fees to her lawyer, Jeffrey Davidson.
Payments to Gray and Davidson must be made by Oct. 10.
Gray filed a lawsuit against the county and Burns and Howard, both in their individual and official capacities, in July, just days after they voted to fire her.
Commissioner Courtney Hammond voted against the termination and was not named in the lawsuit.
At the time, the commission gave Gray a 20-day notice as outlined in her 2023 contract, but she alleged the commission violated state law requiring notice of termination, a statement of cause and a public hearing where both sides can be heard before a termination becomes effective.
Gray also alleged sexual harassment, discrimination, defamation and other misconduct.
Hours after Gray filed the lawsuit, the Superior Court issued a temporary restraining order, ruling the commission had violated her rights and reversing the termination until a hearing could be held.
About three weeks later, while Gray remained on paid leave and before the Superior Court hearing was held, the case moved to U.S. District Court at the county’s request.
In federal court, the county and commissioners asked the judge to dismiss most of Gray’s claims, leaving only allegations of breach of contract, whistleblower violations, sexual harassment and discrimination, and due process violations — all of which the county denied.
On Aug. 26, acting on the advice of legal counsel to comply with the temporary restraining order, commissioners unanimously rescinded Gray’s termination. She returned to work two days later.
The commission voted Sept. 10 to accept a settlement agreement negotiated by its lawyers, but it did not immediately disclose its terms to the public.
The county released a copy of Gray’s amended contract, which removes the commission’s authority to make final decisions on suspending or terminating her employment. Instead, any suspension or termination would be overseen by a three‑member arbitration panel — a structure designed to prevent potential retaliation by the county or commissioners against Gray.
The amended agreement also establishes Gray’s annual salary at $94,479. Her salary was $81,800 when she was hired.
This story appears as part of a collaboration to strengthen investigative journalism in Maine between the BDN and The Maine Monitor. Read more about the partnership.