Milpitas: Former city manager seeks to penalize city for allegedly failing to respond to lawsuit

MILPITAS — Former City Manager Steve McHarris is seeking monetary sanctions against the city, accusing ex-Mayor Richard Tran for refusing to comply with a court order that would allow McHarris to move ahead with a wrongful termination lawsuit he filed in 2023 against the city.

McHarris had served as city manager from 2020 until June 2023 when the City Council decided in a closed meeting to not renew his contract. McHarris then filed a lawsuit in December 2023, accusing the council of violating his contract and calling out city officials including Tran and current Mayor Carmen Montano for exhibiting unethical behavior during his tenure.

In a motion filed last week in the Santa Clara County Superior Court, by McHarris’s lawyer, Stephen Jaffe alleges that Tran failed to complete his scheduled Dec. 23, 2024 deposition and lied about his availability to do so. A deposition refers to a sworn statement made by a witness outside of the courtroom and helps both sides understand the evidence and prepare for trial.

“Tran is the most critical witness affiliated with the defendant and is the principal actor behind the allegations of wrongdoing made in plaintiff’s complaint,” Jaffe wrote in the filing.

Jaffe is asking the court to impose multiple penalties on the city, including paying a fine of $18,500. The court is expected to make a decision in the upcoming months.

The motion states that Tran claims not to have been available to complete the deposition because he was traveling internationally. However, Jaffe notes that Tran was making social media posts from Milpitas and San Jose at that same time, was playing pickleball in Milpitas on Christmas Day and attending a New Year’s party on New Year’s Eve surrounded by Milpitas residents.

“Such obvious dishonesty from the former elected Mayor of the defendant City surely justifies the most extreme consequence,” the motion states.

Tran could not be reached by this news organization for a comment on the claim.

A city spokesperson also declined to comment on McHarris’ claims, citing a policy not to comment on ongoing litigation.

The 2023 lawsuit accuses Tran of exchanging endorsements for political favors. Tran and other officials allegedly overstepped their authority by trying to get a city employee fired and began requesting several unsanctioned performance evaluations for McHarris, the lawsuit states. McHarris felt the requests were “inconsistent with past practice” and “constituted further wrongful workplace retaliation” for previous disputes with the former mayor.

Tran previously told this news organization that he didn’t pressure the former city manager to fire anyone, nor did he attempt to exchange endorsements for a promise to fire McHarris. The city previously denied any wrongdoing and hired an outside law firm in 2023 to conduct its own investigation into the issues.

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