City Agrees to Pay $346,000 to Settle Sexual Harassment Lawsuit

In the most costly resolution of a sexual harassment case in city history, Pasadena has agreed to pay $346,000 to settle a lawsuit by a secretary in its Department of Water and Power whose allegations against a high-ranking official led to his demotion.

Legal secretary Kathleen Thompson, 54, alleged in the suit that for nearly eight years Henry Lee, assistant general manager of operations, subjected her to sexual remarks, jokes and touching and that her complaints to management were ignored. According to the suit, the harassment culminated in March 1996, when Lee grabbed Thompson and demanded sex.

The city admitted no wrongdoing in the settlement. City officials said Pasadena decided to settle to avoid the expected costs of litigation.

Thompson’s attorneys, D. Jay Ritt and Pegine Grayson, called the agreement a vindication for their client and testament to the courage of other city employees who stood by her. “This is the largest settlement of its kind for the city. I think that says it all,” Ritt said.

Thompson’s attorneys said a key aspect of the case was an investigation by the city’s Affirmative Action Department that found other women complained Lee touched them inappropriately and an admission by the water manager to an investigator that he touched Thompson inappropriately. Thompson will leave her job as part of the settlement.

Lee, who has denied any wrongdoing, was demoted last summer. He provided a letter of apology as part of settlement of the suit, which named him and four other city employees.