Poplar Bluff city manager files suit against councilwoman

POPLAR BLUFF, Mo. -- Poplar Bluff City Manager Doug Bagby filed a defamation lawsuit last week against Councilwoman Angela Pearson for statements she published this summer that he says tarnished and hurt his reputation.

On behalf of Bagby, Poplar Bluff attorney Dan Moore filed a petition with the Butler County Circuit Court on Wednesday seeking damages against Pearson, who was elected in April to represent Ward 1 on the Poplar Bluff City Council.

Bagby's suit is the result of allegations Pearson made in August, when she described as "very disappointing and disturbing" information concerning the city's business practices.

She questioned the bidding process used for health insurance for city employees, engineering work and auditing services. She alleged Bagby had conflicts of interest while serving on a bank board with men who do business with the city.

Pearson asked state and federal authorities to investigate.

Nearly 500 pages of documentation prepared by Pearson containing allegations of criminal wrongdoings by Bagby, city attorney Wally Duncan, former and current city council members and numerous community and business leaders in Poplar Bluff were forwarded to the Missouri State Highway Patrol.

In September, patrol Col. Ron Replogle notified city officials the allegations did not appear to be of a criminal nature.

There has been no word whether any of the other agencies asked by Pearson to investigate her claims have done so.

At the time the patrol released its decision, Bagby, who has served as city manager for the past 10 years, indicated he would review his legal options as to Pearson's actions.

"I've worked in public service for almost 40 years now, and in that time, I've done my best to build a reputation based on honesty and integrity," Bagby said. "It's exactly the same way I've tried to raise my family. I don't intend to stand by idly and allow someone to attack me and the reputation I've tried to build and the values I've tried to instill in my family with untruth and malice."

Moore said he has known Bagby for many years and doesn't always agree with the things the city does, but "I know this: He is an honest person, and he's been a good public servant."

Moore said he has "no idea" where Pearson is getting what he called misinformation, but "to just throw [allegations] up against the wall and hope some of its sticks, when it's absolutely not based in fact," is not fair to Bagby or other residents of the community.

Public figures, Moore said, have to take some ridicule and suffer some satire, which is "fair game, [but someone] can't go around accusing people of the things she accused him of and think you are going to get away with it."

When Moore was first brought the information, Pearson said he thought it was a joke, something "you might see on 'Saturday Night Live' about someone."

The claim Bagby was violating Securities and Exchange Commission regulations and manipulating bank stock by advising the city street department where to buy its shovels "borders on the ridiculous."

Moore said he and Bagby will "see what happens" as the case moves through the court system.

Being attacked by "someone with a hidden agenda, he's not going to put up with that [expletive], and I don't blame him one bit," Moore said.

A message left on Pearson's cellphone was not returned.

Bagby's petition accuses Pearson of publishing allegations, electronically and on paper, in July, August and September containing four statements:

* "This research has unearthed the unethical dealings in which the people here in the City of Poplar Bluff have been talking about for years";

* "I discovered that our city manager, Mr. Douglas Bagby, has several conflicts of interest by using his role to influence where much of our city's business is given";

* "The city manager stands to gain financially because the director compensation from the bank is based on the bank's performance"; and

* "It occurred to me that this could be a big reason why share value has risen over the years. In this situation there is already a great essence of public corruption, multiple conflicts of interest, and now it appears that there might be manipulation of the market because he is directing the city dollars to these businesses that do business with that bank."

Attached to the petition are two emails from Pearson, one dated Aug. 11 and one the next day, which were "published to various organizations and various individuals, some of which were located in Butler County, Mo."

In the first email, which contains three pages, there is no indication of who the recipients are; the second was sent to the U.S. Securities and Exchange Commission, specifically its whistle-blower program, as a follow-up to a form she had filled out online earlier.

Both emails cite Bagby's alleged "conflict of interest" with a local bank board and businesses providing services and/or goods to the city.

Pearson's first email names four local businesses, including three which each have a managing principal serving on the bank's board with Bagby, and how those businesses have reaped benefits for their companies and for themselves as bank directors.

Bagby said earlier someone would have to use his or her imagination to "connect the dots on how this could be happening. The problem with her analysis is I don't sign contracts, approve bills paid or approve the city budget. That all happens at the council level."

Bagby's petition alleges the publication of "this defamatory language was made by [Pearson] with malice. [She] either knew that the allegations were false or [she] recklessly disregarded that the statements were false."

"At the time of the publication, [Pearson] either knew that the allegations were false or published the same with reckless disregard for whether it was true or false at a time when [she] had serious doubts as to whether it was true."

The statements, the petition further alleges, exposed Bagby to "hatred, contempt, ridicule and/or deprive [him] of the benefit of public confidence and social associations, especially given" his position as city manager.

The petition further says the statements were read by the public at large, but "specifically were forwarded to certain individuals with the intent to damage the reputation of [Bagby] for being an honest public servant."