The Port of Seattle has paid outside law firms $1.7 million to defend against two lawsuits related to Seattle-Tacoma International Airport’s concessions program, newly released records show.
The Port of Seattle has paid outside law firms $1.7 million to defend against two lawsuits related to Seattle-Tacoma International Airport’s concessions program, newly released records show.
The legal tab goes back almost three years, when several minority-owned businesses accused the Port of discrimination by offering better lease terms to nonminority-owned firms — a charge the Port denied. The businesses dropped their claims for damages in a 2016 settlement and received extensions to their leases, according to the Port.
Defending against that lawsuit cost the Port $1 million after reimbursements from its insurance carrier, the records show. Even before the litigation was over, the Port faced another related legal battle.
The head of the airport’s dining and retail group, along with another senior staffer, had resisted granting lease extensions to the minority-owned businesses that sued. The lawsuit revealed emails in which the two Port staffers referred to one of the business owners, an African American, in derogatory, racially charged terms. The Port’s investigation found no evidence of racial bias but determined the staffers violated its email policy, and it fired them for misconduct.
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The two former employees, Deanna Zachrisson and Elaine Lincoln, sued the Port for wrongful termination this past September. The women allege that they were fired for opposing lease extensions — which they believed were illegal — to firms that had close ties to Port Commissioner John W. Creighton III. The Port and Creighton deny the claims of retaliation.
To date, the Port has paid more than $716,000 to four outside law firms in defending against the former employees’ claims, which remain pending. The Port hired one firm to represent Creighton for fees up to $45,000; it spent a little more than $19,000 so far for that. A trial is set for October.
The Port didn’t respond to requests for comment Tuesday.
In addition to operating Sea-Tac Airport, the Port runs a maritime business and is a major property owner in King County. It is subsidized by a $72 million property-tax levy in the county, which is used to pay for construction and borrowing costs, along with transportation, environmental and certain other operating expenses, according to its latest annual financial statement.
The Port is governed by five commissioners who are elected by King County voters and paid the same salary as state legislators. Three commission spots are up for election this year: The positions held by Creighton and Commissioner Stephanie Bowman, and the vacancy left by Commissioner Tom Albro, who is not running for re-election.