Lawsuit is long over, but Des Plaines clerk still upset about city’s relationship with credit union

Nearly two years after Des Plaines City Clerk Jessica Mastalski settled her lawsuit against the city-connected credit union where she once worked and the city, she again is arguing issues at the core of the case — but this time in the court of public opinion.

Mastalski spent two minutes during last week’s city council meeting talking about the breach-of-contract lawsuit and questioning the financial relationship between the city and the city hall-based Northwest Municipal Federal Credit Union.

Mastalski criticized the payment process for credit union workers, alleged financial wrongdoing by unspecified city employees and called for an investigation.

“It is disappointing that the city is not taking such matters seriously,” said Mastalski, who is nearing the end of her four-year term as clerk and is running for 1st Ward alderman in the April 1 election.

Mastalski expressed the same concerns during a candidate forum earlier this month, in a candidate questionnaire and in a lengthy social media post.

Mayor Andrew Goczkowski called Mastalski’s lawsuit “frivolous” and noted it cost taxpayers more than $72,000 to defend. The issues were investigated, he said, and no malfeasance was found.

“Ms. Mastalski’s absurd claims have no merit and no basis in reality,” Goczkowski said.

The lawsuit

Mastalski filed the lawsuit in Cook County court in November 2021, six months after being fired from her job as a member service representative with the credit union, court documents show. She had been hired in 2016 and worked there when she was elected clerk in April 2021.

The credit union operates rent-free on the fourth floor at Des Plaines city hall. It’s open to municipal workers in Des Plaines and other suburbs as well as workers with other governmental organizations.

In her lawsuit, Mastalski claimed she was fired for asking supervisors why her paychecks came from the city. The organization claimed Mastalski was fired because of “excessive tardiness,” according to court documents; Mastalski called that “nonsense.”

Attorneys for Des Plaines argued the city served as a payroll administrator for the credit union, just as it has for other nonprofit organizations. Judge Patrick J. Sherlock sided with the city, dismissing the complaint against Des Plaines in July 2023.

Why now?

Mastalski and the credit union reached a settlement later that month, records indicate. The deal was supposed to be confidential, but Mastalski revealed details of the agreement in subsequent court filings, including that she was to be paid $55,000 and that the parties agreed to not disparage each other.

But then last month, Mastalski cited the credit union’s financial relationship with the city as a top fiscal concern on her Daily Herald candidate questionnaire. She next raised the subject at a March 5 candidate forum, at the March 17 council meeting and on social media.

When asked via email why she’s going public with her concerns now, Mastalski said “because the issue has not been rectified.”

“The residents have a right to be made aware; since the city has not notified the residents, I then proceeded to make it public,” Mastalski said.

Goczkowski said internal and external investigations into Mastalski’s claims found no evidence of impropriety.

“In line with best financial practices, the City’s finances have been examined annually by independent external auditors who have given the City a clean audit opinion,” Goczkowski said in an email. “In addition, the Internal Revenue Service has also audited the City, and they also found no wrongdoing.”

Mastalski’s opponent in the 1st Ward race, Margaret Chlebek, said the lawsuit shows Mastalski “doesn’t have the best interest of anyone but herself.”

“She should do the taxpayers a favor and stop costing them money and step down from the race,” Chlebek said in an email.