(The Center Square) – Facing several lawsuits, the Spokane City Council will consider authorizing another $650,000 for outside defense Monday to fight against six cases, capping the contracts at $1.63 million.
From insurance disputes and a wrongful-death claim to free speech and COVID-19 vaccines, the city is embroiled in costly litigation. The Risk Management Fund is typically responsible for these insurance premiums, claims and litigation, and faced a squeeze last year, forcing the city to dip into its reserves.
The council ended up pulling $500,000 from the account last September amid an increase in claims for 2025, but then cut the Risk Management Fund’s budget heading into 2026. It went from $15.5 million in revenues for 2025-26 to $15.2 million, and from $15.4 million in planned expenses to $14.9 million.
Communications Director Erin Hut did not immediately respond to The Center Square’s inquiry before publishing about whether the city would have to draw on its reserves again in 2026, as it did last year.
Pennsylvania Insurance Provider Lawsuit
The first consent agenda item related to outside legal costs on Monday proposes another $100,000 for a lawsuit that the Insurance Company of the State of Pennsylvania filed against Spokane last summer.
The insurance provider hopes to avoid being responsible for paying tens of millions of dollars in claims as the municipality faces other lawsuits over water surcharges it levied on property outside city limits.
If approved, the additional $100,000 in legal costs would cap the contract over this case at $200,000.
Musselman Wrongful-Death Lawsuit
The next consent agenda item on Monday regarding outside legal costs proposes another $100,000 for a lawsuit the estate of Joshua Musselman filed against the Spokane Police Department in January. SPD fatally shot Musselman in 2024 outside his apartment after responding to reports of a rifle being fired.
According to local media reports, Musselman was dealing with mental health issues and allegedly had an airsoft gun that SPD thought was a rifle. The county medical examiner ruled his death a homicide.
If approved, the additional $100,000 in legal costs would cap the contract over this case at $150,000.
First Amendment Lawsuits
The next two agenda items regarding outside counsel propose another $50,000 each for two lawsuits.
Both cases stem from a 2023 council resolution that denounced former Mayor Nadine Woodward for appearing on stage at an event with conservative Christian activist Sean Feucht and former state Rep. Matt Shea, who was expelled from the House Republican caucus in 2019 following an investigation.
Woodward is also suing the city for $10 million over the resolution, according to local media reports.
Mayor Lisa Brown declared a “complete victory” in September after a Superior Court judge dismissed Fuecht’s case; however, Monday’s agenda states that “additional funds are necessary to defend this.”
Shea is currently appealing his own case in federal court after a judge dismissed many of his claims.
If approved, the additional $50,000 for Fuecht’s lawsuit will raise the city’s cap on outside counsel to $300,000 for that case, with the $50,000 for Shea’s lawsuit raising the cap for that case to $200,000.
COVID-19 Vaccine Mandate Lawsuits
The last two agenda items regarding outside counsel stem from lawsuits filed by firefighters against the city over Washington’s COVID-19 vaccine mandate, after they were denied religious and medical accommodations. One lawsuit is in federal court, and the other is in Spokane County Superior Court.
Monday’s agenda includes a proposal to spend another $300,000 fighting the lawsuit in federal court and $50,000 on the case in Spokane County. If approved, the cap for the federal case, filed in 2021, would amount to $685,000, while the cap for the local case, filed in 2025, would amount to $100,000.
Councilmember Michael Cathcart, who sponsored four of the six outside counsel proposals, wasn’t sure whether the Risk Management Fund or a separate “legal” fund would be responsible for the $650,000.
“Our budget director says (may need to verify with CFO) that these are coming from Legal fund and not risk management,” Cathcart wrote in a message to The Center Square.
However, administrative policies suggest the Risk Management Fund would be responsible for these.
Chief Financial Officer Matt Boston did not respond to The Center Square’s voicemail before publishing.
