Carthage city administrator sues city, council members, Carthage Citizens United

Claiming he has been targeted because of his success in uncovering corruption and graft in the Carthage Parks Department and Convention and Visitors Bureau, City Administrator Greg Dagnan filed a lawsuit against the city, city council members and Carthage Citizens United today in Jasper County Circuit Court.

Listed as defendants in the lawsuit are the City of Carthage, council members Tiffany Cossey, Alan Snow, Jana Schramm, Derek Peterson, Chris Taylor, Lori Leece, Dustin Edge, Terri Heckmaster, Thomas Barlow and Carthage Citizens United.

In the petition, Dagnan, who has been city administrator for the past two years and previously served as police chief for 13 years, outlined the war that has been waged against him by certain City Council members and people who lost out when Dagnan uncovered problems with a proposed land purchase around Precious Moments.

According to the lawsuit, when Dagnan questioned why the city was paying $6 million for land that had been valued at $4.1 million, the deal fell through.

From the petition:

Early in Mr. Dagnan’s tenure as City Administrator, {Mark Peterson} the then-City-of-Carthage Parks Director, approached Mr. Dagnan and Council about purchasing a 254-acre tract of land. The employee proposed developing the tract of land into a park. 

The City of Carthage pursued the new park project. When the land was appraised, the land was valued at $4.1 million. However, when a purchase price of $6 million was preliminarily agreed to between the parties. Mr. Dagnan questioned the discrepancy. Eventually, the Council rejected the proposal and did not purchase the land. 

{Peterson} ultimately resigned over the City of Carthage’s reluctance to purchase the large tract of land. After the resignation of Mr. Dagnan discovered accounting irregularities that related to the operation of the City of Carthage’s Parks Department. Mr. Dagnan reported his findings to the Council, and eventually, law enforcement. 

A forensic audit concluded that more than $142,000 of City of Carthage funds were unaccounted for. Criminal charges were filed against the parks director relating to the missing city funds. 

Mr. Dagnan discovered additional accounting irregularities involving the Carthage Convention and Visitors Bureau. Another forensic audit revealed that Director of the Carthage Convention and Visitors Bureau, had made several thousand dollars worth of unauthorized purchases and transfers using City of Carthage funds, including purchases for alcohol, salon trips, and cash transfers to family members. 

 The State of Missouri criminally charged both for their theft of City of Carthage funds. In response to Mr. Dagnan’s efforts to identify corruption and graft at the City of Carthage, a political action committee was formed to oust Mr. Dagnan from his role as City Administrator. 

Carthage Citizens United formed in 2023 and aggressively began fundraising in efforts to replace Carthage city council members with new members who would carry out the organization’s bidding of firing Mr. Dagnan. 

Carthage Citizens United endorsed city council candidates and poured more than $10,000 into ensuring these candidates were elected. Carthage Citizens United endorsed Mr. Peterson, Mr. Edge, Mr. Barlow and Ms. Schramm. 

Indeed, one of the council members endorsed by Carthage Citizens United– Ms. Schramm– served as an inaugural office holder Treasurer– upon the organization’s formation.

 In April 2024, Carthage-Citizens-United-endorsed candidates, including Ms. Schramm, each won city council seats. At the first public meeting of the newly convened Council, on April 9, 2024, the Council attempted to fire Mr. Dagnan, voting 7-2 in favor of firing Mr. Dagnan. 

In the process of doing so, Mr. Snow expressly referenced Mr. Dagnan’s involvement in uncovering the Carthage Convention and Visitors Bureau scandal. Mr. Snow cited Mr. Dagnan’s uncovering and report of unlawful conduct as an example of how the council had “lost trust” in Mr. Dagnan. 

Mr. Dagnan’s involvement with uncovering the theft of more than $142,000 from City of Carthage also factored into the Council’s attempt to fire Mr. Dagnan. 

The Mayor of Carthage, Dan Rife, refused to forward the vote because it was not included on the meeting agenda and would have violated the Sunshine Law, which requires advance notice of new business. 

A special city council meeting was scheduled for April 11, 2024. During the April 11, 2024 city council meeting, the Council again attempted to fire Mr. Dagnan.

In the lawsuit, Dagnan alleges the council violated the Sunshine Law in its efforts to fire him, interfered with his contract with the city and defamed him.

All city council members and the city are being sued for a violation of state law when they attempted to fire him for reporting the problems in the Parks Department and the Convention and Visitors Bureau and violations of the Sunshine Law.

Council members Cossey, Snow, Schramm, Peterson, Barlow, Edge and Heckmaster are accused of violating the Sunshine Law through their various efforts to fire Dagnan without giving him proper notice, according to the petition.

The same council members are named in the count alleging defamation.

Carthage and the Council published one or more false and defamatory statements about Mr. Dagnan.

On April 9, 2024, members of the Council publicly humiliated Mr. Dagnan by voting to fire him in a public meeting. 

On April 11, 2024, members of the Council said Mr. Dagnan was “untruthful” and city employees were afraid of Mr. Dagnan. 

On April 9, 11, 29 and May 10, 2024, members of the Council falsely stated that Mr. Dagnan had been fired. Members of the council told Mr. Dagnan that he should sit in the audience because he was no longer employed by the City, even though Mr. Dagnan remained employed by the City.

All statements by the council members were live streamed on the City of Carthage’s YouTube channel. As a direct result, Mr. Dagnan has sustained emotional distress and pecuniary damages to his career, losing his job and damage to Mr. Dagnan’s reputational standing.

The seven city council members and Carthage Citizens United are alleged to have interfered with Dagnan's contract.

Dagnan also alleges that Carthage Citizens United and Schramm violated state law by taking action against him because of his efforts to deal with corruption in the city.

Mr. Dagnan is a protected person, under RSMo. 130.028.1(1), because he is an “employee in this state” who exercised political beliefs and opinions, including that corruption and graft should not be tolerated by the City of Carthage and that no person, regardless of affiliation or community standing, should be above the rule of law.

Carthage Citizens United was formed by Ms. Schramm, as Treasurer, who is now a member of the Council that employs Mr. Dagnan. 77. Carthage Citizens United has repeatedly threatened to discriminate against Mr. Dagnan with respect to his compensation, terms, condition and privileges of employment because of political beliefs and opinions. Carthage Citizens United posted numerous times on Facebook criticizing Mr. Dagnan and advocating for his removal as the City Administrator.

Dagnan is requesting a jury trial and is asking for damages, punitive damages and attorney fees.