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May 14, 2009

Councilman won’t appeal loss to city

Pepelea: Decision was politically motivated

By Aleasha Sandley, Herald Bulletin Staff Writer

ANDERSON — A city councilman who lost a $75,000 civil suit against the city will not pursue the case further in appellate court.

Councilman Art Pepelea Jr. said he lost the case, in which he sought money to cover the broker’s fees in an insurance contract he negotiated with the city, because of politics. Pepelea is a Republican, while Anderson Mayor Kris Ockomon; the case’s judge, Jack Brinkman; and city attorney Tim Lanane all are Democrats.

“Anyone on the face of the earth that has the IQ of a 4-and-a-half-year-old knew what the decision was going to be,” Pepelea said. “This is all about politics. I’m a Republican, they’re Democrats and they don’t want to pay me.”

Brinkman ruled on the case before it went to trial, signing an order April 24 that said Pepelea’s conflict of interest that occurred by serving on the City Council and negotiating its employee insurance contract was not properly disclosed before the contract took effect.

According to the lawsuit, Pepelea had brokered contracts between the city and Anthem insurance since 2005, but did not ask for a broker’s fee until 2007 for the contract for 2008. The contract with the fee was approved by the City Council in November 2007. Pepelea did not vote on the contract.

Ockomon called Anthem the day he took office, Jan. 1, 2008, to ask the company not to give Pepelea his broker’s fee and for a new broker, according to the lawsuit, but Pepelea said Ockomon made the call in November before he took office.

“We had to go hire somebody else to make sure I didn’t get paid,” Pepelea said. “January 1 of 2008, find out how many insurance agents they fired, and you’ll find out I was the only one.”

Ockomon was not available for comment Thursday evening.

Pepelea said his conflict of interest had been disclosed correctly and approved by the city’s attorney at the time. He said the city council approved unanimously the conflict of interest in December 2007.

“There is no case law that backs up the decision (Brinkman) made,” Pepelea said.

Brinkman’s decision stated Pepelea violated an Indiana statute about properly disclosing conflicts of interest for public officials.

Pepelea said he wouldn’t pursue the case because of time constraints and the chances of getting a Democrat judge.

“It’s all about politics,” he said. “If I could get a Republican judge, you bet I would pursue it.”

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