HUTTO — A panel of three federal judges handed down good news for the city in a discrimination lawsuit hanging over Hutto since 2020.
While city officials heaved a collective sigh of relief, no one was exactly cheering in the wake of what many considered a long, expensive and sometimes bitter struggle over the racial bias complaint filed by former City Manager Odis Jones.
In the decision announced by the city Oct. 7, the U.S. Fifth Circuit Court of Appeals in New Orleans overturned a 2023 districttrial ruling in the case of Jones versus Hutto, reversing an $8 million judgment against the city.
In Jones’ favor, the panel upheld the validity of his $412,000 separation payment and determined the city should pay his attorney fees. “We’re grateful for the court’s thoughtful review and for upholding the facts,” said City Manager James Earp. “This decision provides closure and allows us to move forward, continuing to serve the Hutto community with transparency and trust.”
Attempts to reach Jones and his attorney were unsuccessful.
After his exit from Hutto, Jones was hired as city manager for Missouri City, where he served about 14 months, then left in April 2021.
According to reports, he is one of four finalists being considered for the city manager position in Kalamazoo, Michigan.
Legal trail
Media accounts, interviews and legal filings show a path leading to the appellate court’s decision that had its genesis in 2016 when Jones was hired as Hutto’s first Black city manager.
An election in 2019 changed the makeup of the council, and by November Jones was out.
The City Council and Jones agreed to a separation payment of $412,000, equal to 12 months of salary and health benefits. The agreement also contained clauses prohibiting the council from disparaging Jones.
In December 2020, under advice from a new city attorney, the council declared the separation agreement was not valid and demanded Jones return the money. A week later, Jones filed suit in federal court claiming violation of his civil rights and breach of contract through disparagement.
He also asserted his separation agreement was valid.
In 2023, the U.S. District Court for the Western District of Texas awarded Jones $8 million in damages for racial discrimination under federal laws that protect against bias in employment and contractual relationships.
He was also awarded $4.5 million for the breach-of-contract claim.
The $4.5 million was later dismissed by the judge, leaving Hutto on the hook for $8 million.
The city appealed the ruling to the Lousianabased circuit court.
The appeals court concluded that Jones had not proven a majority of the council acted from racial motivation, nor that any council members influenced the others, so it ruled against the discrimination claims.
“Evidence of disparagement by two members of the City Council is not evidence of disparagement by the city or the council as a body. The evidence reflected that disparaging statements by the two council members were made individually, in contexts that could not have been construed as reflecting actions of the city or the City Council,” said Circuit Judge Priscilla Richman in the appeals court brief.
The judge said the panel found no direct or circumstantial evidence the actions against Jones by the council were based on racial bias.
“Unless further appeals are made, the case will return to court to decide competing attorney’s fee award claims based on the decision,” said a city spokeswoman.
Local reaction
Some council members took to social media to comment on the judgment, with many stressing their opinions are personal and not the council’s.
“I was asked … if I am relieved that this lawsuit is over. No, I’m not. I had faith in the justice system,” said Mayor Mike Snyder, who was a councilman when Jones left. “What really saddened me about the whole incident is that real people (face discrimination). …And, any time a person … tries to use our justice system as a way to ‘get back’ at someone, it causes real harm to those who are being harmed.”
Councilman Peter Gordon added, “I am grateful that the Fifth Circuit correctly applied the law and reversed the trial court’s decision, and that they did not attribute the alleged beliefs, actions or statements of one or two individual council members to the council as a whole.”
There is much to be learned from the lengthy legal battle, Thompson said.
“Appeals can change judgments but, they don’t erase wrongdoing or poor judgment,” he said. “The reversal doesn’t absolve the two members whose public comments aggravated the situation and put the city at risk.”
