Gray drops lawsuit as county and manager reach settlement

Washington County Manager Renee Gray agreed to drop her lawsuit against the county and two of its commissioners under a settlement agreement that adds legal protections in her contract in case of another effort to fire her. She also will be paid $2,500 and have her attorney fees of $7,000 paid. The settlement was signed by all of the parties on September 10, with the county commissioners signing after an executive session during their meeting that day.

Gray had been fired in a 2-1 vote by the commissioners on July 2 and had then filed suit against the county and two of the commissioners, David Burns and Billy Howard, in both their official and private capacities, alleging she was fired illegally. On July 17 a temporary restraining order issued in superior court prohibited the county from moving forward on her firing, as the court found that the process for dismissing her had not been correct. Then, at a meeting on August 26, the commissioners voted unanimously to reinstate Gray as county manager immediately, based on a motion that had been negotiated among the attorneys for the different parties in the lawsuit. David Burns, the chair of the commissioners, stated that they need to follow the court order, as it found that the process for dismissing her had not been correct. Gray returned to work but did not drop the lawsuit, saying she would only do so if there was a settlement that amended her employment contract to provide legal protections for her.

Her contract now states that the county may suspend or terminate her only through arbitration, not by a vote of the commissioners. The arbitrator must hold a public hearing on the matter, and the county will pay two-thirds of the fees and expenses of the arbitrator and the employee one-third. Under the contract, her salary is $94,479. She had been hired in July 2023 at a salary of $81,800 and received raises in 2024 and 2025, as did other county employees.

The lawsuit, which was moved to federal court, alleged that Gray was fired without cause following an executive session of the county commission. It asserted among other things that Commissioners Burns and Howard, in both their official and private capacities, denied Gray's rights by not affording her the due process required when terminating employees, actions which also amounted to a breach of their contract with Gray.

Attorneys representing the county and commissioners Burns and Billy Howard in their official capacities had filed a motion for partial dismissal of the court case. They asked the court to dismiss all charges related to Maine's Freedom of Access Act and wrongful termination as well as intentional infliction of emotional distress and defamation.

Attorneys for the defendants in their individual capacities then had requested dismissal of all of the claims in the suit. Those claims included violation of numerous federal and state laws; breach of contract for failure to conduct annual performance reviews and for termination without cause; violation of Maine's Whistleblower Protection Act; sexual harassment and discrimination; infliction of emotional distress; defamation; and due process violations. Under the settlement agreement, Gray releases the defendants from all of those claims.