Dougherty County Commission OKs $250,000 settlement with former county administrator

ALBANY — The Dougherty County Commission has agreed to a settlement in one of the pending legal cases filed against the county by former County Administrator Michael McCoy.

The unanimous vote came on Monday after a meeting closed to the public called for the purpose of discussing personnel, pending litigation and property acquisition matters. The county’s insurance carrier recommended that the county approve the $250,000 settlement in the case.

“Yesterday, the board decided, after discussion in executive session, to approve a settlement offer with Michael McCoy and his attorney and for the carrier to provide a $250,000 settlement that will be shared between Mr. McCoy and his attorney,” Commissioner Russell Gray said. 

The county’s responsibility for separate expenses, including legal fees, is capped at $200,000 under the policy, the commissioner said.

An Albany Herald story published in May 2024 showed that the county had racked up more than $206,000 in costs related to the case up to roughly that time. That $206,285 figure included legal fees totaling $196,530 and other expenses totaling $9,755.

It was not known the amount of any additional expenses that have accrued since that story was published.

The settlement covers one aspect of the case that also includes a claim involving early retirement payments.

McCoy, whose tenure with the county lasted more than 25 years, initially was hired as solid waste director before serving as assistant county administrator and county administrator, had sued the county and, individually, Commissioners Victor Edwards, Gloria Gaines and Clinton Johnson, as well as Commission Chairman Lorenzo Heard.

The settlement covers that portion of McCoy’s legal claims against the county and those individual commissioners, Gray said.

The Commission voted on May 22, 2023, to terminate McCoy with a majority made up of Edwards, Gaines, Heard and Johnson. However, after there were questions about the legality of that vote, as the issue was not on the commission agenda for that day, McCoy was re-instated on a subsequent vote two weeks later, with another vote taken immediately to again terminate his contract. That motion was approved by the same four in December 2023.

A third vote was taken on June 27, 2023, at the conclusion of a personnel hearing requested by McCoy, with that vote confirming the earlier votes with the same 4-3 majority. Commissioners Russell Gray, Anthony Jones and Ed Newsome were in the minority in all of the votes taken to terminate McCoy.

In his 2004 lawsuit, McCoy sought $5 million in punitive damages, reinstatement to his job and other compensation in Dougherty County Superior Court. The four commissioners who voted to remove McCoy later filed a countersuit against the former county administrator.

While county officials said it is good to have the lawsuit behind them, the county could have come out ahead by thinking strategically, Gray said: For instance, he noted, suspending McCoy with pay for roughly half of his annual salary of $430,000 since the firing came mid-year.

With the extended legal battle and expenses, the county runs the risk of having its insurance rate increased in the future, he said.

“I’ve jokingly said … we’ve spent more in terms of legal fees to this point than what it would have cost to pay Mike out,” Gray said. “Every dollar that’s spent – it’s $250,000 – is an effective tax increase. Every one of these are unbudgeted expenses. If we keep pursuing cases the insurance company doesn’t feel we can win, why not drop us or (hike) our premium through the roof?

“I’m glad to have this piece of the McCoy issue settled. That’s one less (to worry about).”

Edwards chalked the settlement up to being “good” for the county.

“I think it’s good we’re coming to the end of this legal process,” he said. “I’m glad that we’re finally coming to some resolution.”

The District 2 commissioner previously questioned McCoy’s salary increase from $170,000 in 2023 to more than $400,000 in 2024, and on Tuesday asked how the contract was altered in 2024 from the previous year allowing for greater compensation for McCoy in the event of his termination.

“The county commission was in their rights making this decision (termination),” Edwards said. “In our capacity as commissioners, we did the right and honorable thing for our county to go forward. It was like we were drug through the mud for something it was in our authority to do.”

Under the county’s charter, the commission has the authority to hire and fire the county administrator, county attorney and chief of the Dougherty County Police Department, Edwards said. 

With the unanimous acceptance of the settlement offer, the commissioner said that the commission is in a place to be able to put the issue behind it and move forward together.

“We got it down from $5 million to ($250,000),” he said.

Contacted on Tuesday, McCoy said that he had no comment as there are still other aspects of his wrongful termination claims that have not yet been settled.

The former administrator also has filed a complaint with the federal Equal Employment Opportunity Commission, and there is also a claim pending involving the early retirement benefits that were promised in his 2024 contract.

The $250,000 settlement is reportedly to be split, with $150,000 going to McCoy and $100,000 earmarked for his attorney.

The attorney, Travis Foust of Atlanta, was not available for comment on Tuesday.