The City of Sequim is mentioned in a lawsuit over campaign contributions in Thurston County Superior Court between the Washington Attorney General Bob Ferguson and the Freedom Foundation, an Olympia think tank.
Ferguson filed the suit on Oct. 14, that the Freedom Foundation failed to report independent expenditures made in support of local ballot propositions put forth to city councilors in three cities — including Sequim — last year.
The suit alleges the Freedom Foundation, a 501(C)3, is in violation of RCW 42.17A.255 for not filing reports with Washington’s Public Disclosure Commission.
Created by the Freedom Foundation, the propositions sought open union collective bargaining labor negotiations with the public, prohibited mandatory union entry for employment and prohibited work stoppages.
Local petitioners wanted the propositions on the November 2014 ballot.
In Sequim, Port Angeles resident Susan Shotthafer submitted signed petitions by City of Sequim residents, but they were later voted down by Sequim City Councilors after to City Attorney Craig Ritchie advised councilors that state statutes relating to collective bargaining prohibits them from moving forward.
Later, Sequim resident Susan Brautigam filed a lawsuit through the Freedom Foundation against the city on Sept. 3, 2014, for not placing the initiatives on the ballot for the November general election.
On Sept. 23, Clallam County Superior Court Judge Erik Rohrer denied the motion for the items to go on the November 2014 ballot, saying the deadline passed.
Some citizens in the cities of Chelan and Shelton also sought similar propositions but were also denied by their city governments. The Freedom Foundation did not appeal the decisions.
However, Ferguson’s lawsuit says that Freedom Foundation staff member David Dewhirst appeared as counsel for the residents filing suits in the three cities without pay from them. Ferguson says Dewhirst did receive his normal salary to pursue the litigation as authorized by Tom McCabe, Chief Executive Officer for the Freedom Foundation, but did not disclose the value of its legal services it provided to support ballot propositions.
“Transparency in elections is vital to the integrity of our democracy,” Ferguson said in a statement. “I am committed to holding all parties accountable for disclosing timely information, so voters can make fully informed decisions.”
Ferguson’s office staff reports it received a Citizen Action Complaint from the Committee for Transparency in Elections in February alleging multiple violations of the state’s public disclosure laws by the Freedom Foundation.
Following the investigation, Ferguson reported most of the allegations did not break the law but that the Freedom Foundation “violated the requirement to report, as an independent expenditure, the value of time the staff spent on litigation to place propositions on the ballots in the three cities.”
The state seeks penalties and injunctive relief, which could cost up to $10,000 per violation.
James Abernathy, general counsel for the Freedom Foundation, said the Freedom Foundation did nothing wrong and they plan to fight the case.
“The public disclosure act does not apply to the legal services we provided,” Abernathy said. “The initiatives never made it on the ballot so there was no campaign. This is an overreach by the attorney general.”
Ferguson also filed suits recently against unions SEIU 925 and SEIU 775 for allegedly violating state campaign-finance laws in not reporting contributions. SEIU 925’s complaint came from the Freedom Foundation.
Abernathy said Ferguson with the propositions’ cases is selectively enforcing the public disclosure laws because he’s not pursuing the unions in the named cities who opposed the propositions too.
He added that the Freedom Foundation was defending the initiative process, not the initiatives themselves, because “city councils are destroying people’s ability to participate and make a law,” he said.
Peter Lavallee, communications director for the Attorney General’s office, said “the Attorney General feels it’s important that all parties file all information that should be public” in regards to the cases involving the Freedom Foundation and two unions.
He anticipates the Freedom Foundation to file a response soon and a Thurston County Superior Court judge will set a hearing date soon.
Lavallee said he doesn’t anticipate the City of Sequim to participate in potential hearings.
