Former city manager Robert Floyd has filed a lawsuit in Oklahoma County District Court against Choctaw and Choctaw Town Square, LLC, a development firm hired by the city.

In the lawsuit, Floyd said he was pressured to leave his post of 25-years after he questioned an invoice submitted in May 2011 by the developer, who was hired to oversee a 40-acre development project on NE 23rd Street.

The company submitted an invoice in the amount of $101,835.59, which was $20,000 more than the amount Floyd said he negotiated with Atchley Resources, Inc., the document shows.

Floyd also is alleging that councilmembers breached his contract and is seeking $75,000 in damages from the municipality. Finally, Floyd is seeking another $75,000 in damages from the development team, specifically listing Josh Kyles, Eldon Blackaby and Kurt Blackaby.

Floyd is being represented by the Ward & Glass law firm in Norman.

On Tuesday, Choctaw councilmembers took their first action regarding the lawsuit during their regularly scheduled meeting.

The council instructed City Attorney Ted Pool to proceed with negotiations with trial attorneys Jim Priest and Rex Travis, both of whom the city is considering as legal counsel in the lawsuit.

Choctaw Mayor Randy Ross called the lawsuit nothing “out of the ordinary.”

“Anyone can file a lawsuit if they are unhappy with the company they work with,’ he said. “We will let the attorneys handle it and the city will move on down the road.”

Lawsuit details

Floyd’s relationship with his employer changed a few months after the city entered into a contract with Town Square, LLC, according to the lawsuit.

The city had previously purchased land on NE 23rd and after sitting untouched for several years, desired to secure a major retail store like Walmart to generate sales tax revenue, the lawsuit shows.

But in order to proceed with development, an oil and gas well had to be removed.

On March 14, 2011, Floyd negotiated a purchase price with Atchley Resources, Inc. for the operating oil and gas well located on the city’s property.

Floyd then notified the developer of the $80,000 negotiated price and shortly thereafter, Ross told Floyd that he and Eldon Blackaby had “discussed the acquisition and that Ross made the executive decision for expedition purposes” for the developer to buy the well from Atchley on the city’s behalf, the lawsuit shows.

An invoice for $101,835.59 was then submitted to city hall in May 2011, according to the lawsuit.

Floyd became suspicious since the invoice was more than the price he had negotiated with Atchley. He told the developer the city would not pay the invoice unless the costs were specified in the billing, the lawsuit shows.

The lawsuit alleges the developers became irate over Floyd’s request but complied by sending a revised invoice of $92,000 for the well. This broke down to the $80,000 purchase price, plus an alleged 15 percent increase for the developer’s services, according to the lawsuit.

Floyd said the 15 percent markup was not part of the city’s original contract negotiated with Choctaw Town Square, LLC.

Floyd presented his findings to the city council and was informed that the council was “married to the developer.” He also was told that the council wanted to keep the invoice hidden from the public because of their fear it would tarnish the developer’s image and reputation as well as the city council, the lawsuit shows.

He then asked the council to fire the developer because “he believed their behavior to be illegal, border lining fraud, and not in the city’s best financial interest,” the document shows.

Eldon Blackaby assured Ross that there was “no illegality in the invoice” sent to the city, the lawsuit alleges. The lawsuit then alleges that the developer and city took steps to prevent Floyd from being further involved with the business development.

In addition, the lawsuit alleges the developers started a campaign to discredit Floyd and his staff, including the city inspector, city planner and city engineer, and get them fired because they were considered as “obstructionists,” the suit alleges.

Floyd reported that the city placed personnel matters on the council’s agenda a total of seven times in “a deliberate effort to intimidate” him.

The lawsuit alleges Ross began circulating a story in February 2012 that a group of businessmen were willing to buy out Floyd’s employment contract in order to get rid of him.

The situation came to a head when the city placed Floyd on administrative leave effective March 16 and advised him his contract would be terminated effective June 30, the lawsuit shows.

Floyd alleges this action was a violation of the city’s charter, which requires a 30-day notice of the proposed removal before placing him on administrative leave and terminating his employment.

Floyd also claims he is due a severance package equal to 12 months’ salary, the lawsuit shows.

His final request for $75,000 in damages alleges the development firm “maliciously interfered” with his employment contract.

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