New District 46 finance boss in Wisconsin legal tussle

Grayslake Elementary District 46's new finance chief has filed a lawsuit over what he contends are defamatory actions by his former bosses at a Wisconsin school system.

Brown Deer School District issued a response to Edward Towle's lawsuit, with spokeswoman Barb Fleming saying his claims are factually inaccurate and without legal merit.

Moreover, Brown Deer is now trying to determine if Towle fully disclosed information about his previous employment at Wisconsin's Westfield School District before he was hired as business manager in 2007.

Towle is to start July 1 as District 46's chief school business official. The contract calls for a $98,000 annual salary, 25 vacation days and a chance to advance to assistant superintendent for business and finance.

After Towle was hired April 7, District 46 officials learned he's been on paid leave at the suburban Milwaukee district since February 2009. He resigned from Brown Deer effective July 1, 2010, and will be on paid leave until then.

Neither Towle nor Brown Deer District Administrator Deb Kerr mentioned the leave during the Grayslake hiring process.

Towle, accompanied by attorney Robert Shumaker, said he provided an explanation about his Brown Deer employment status to the District 46 school board at a closed-door meeting Monday night. Towle's employment status in District 46 is expected to be a board agenda item when officials meet again on May 19.

Last Friday, Towle sued Kerr, the Brown Deer school board and district in Milwaukee County Circuit Court. Unspecified damages are sought in the complaint alleging defamation and breach of contract.

No financial irregularities were found in an accounting firm's audit of Brown Deer in February 2009, according to the suit. Towle heard few legitimate concerns and "a large number of nonsensical questions" in two meetings with Kerr and a Brown Deer lawyer in March and May 2009, the lawsuit contends.

At one of the meetings, Towle was questioned on why he did not recommend Brown Deer use risky securities to invest money borrowed for construction projects, says the complaint.

Three weeks after he was hired in Grayslake, Kerr issued a statement saying "serious concerns" about Towle's job performance led to him being placed on paid leave at Brown Deer in February 2009 while collecting his full $107,449 salary.

Kerr's comments have put Towle's ability to retain his new position at District 46 in doubt, says the suit.

Fleming said Brown Deer intends to release documents today showing a pattern of professional behavior by Towle that jeopardized the financial security of taxpayers' money. The release comes after a request for records under Wisconsin's public information law.

"Additionally, the district is looking into potential claims against Mr. Towle for his failure to fully disclose information regarding his previous employment when he applied for his position with Brown Deer," said Fleming.

Shumaker scoffed at Brown Deer questioning Towle's history at Westfield School District, where he worked from 2003 to 2007.

"This seems like a desperate attempt to deflect scrutiny away from (Kerr's) own unjustifiable conduct," Shumaker said.

Kerr wrote a letter of recommendation on behalf of Towle to District 46. She said she did so as part of an agreement with Towle's attorney.

Towle's lawsuit also contends he never was provided with a hearing or other due process when he was placed on leave 15 months ago pending an investigation. His requests to return to work at Brown Deer were reportedly ignored, the suit says.