A jury in Travis County 261st Judicial District Civil Court has ruled in Richard Eason’s favor in his lawsuit against Lakeway Municipal Utilities District Director Kay Andrews.

Eason, general manager of the utility district, filed the lawsuit Aug. 27, 2009, alleging that Andrews “made several disparaging statements to third parties about Eason injuring his reputation, and impeaching his honesty, integrity, virtue, or reputation.” The unanimous verdict was delivered on June 25, ruling the director had made defamatory statements against Eason.
In a prepared statement to the press, Eason said the jury found that “Andrews acted with malice, spreading several accusations and insinuations she knew to be false about Eason to certain contractors and customers, acting outside official immunity or privilege as a board member.” The jury awarded Eason $91,000 in damages for loss of reputation, mental anguish, and for exemplary damages.
Newly-elected LMUD president Karl Ansbach said he isn’t yet certain whether the district will be liable for the damages or if Andrews is, or a combination of both. The district has an insurance policy with the Texas Municipal League.
“We are waiting for the court to make its specific determinations,” Ansbach said. At presstime, the Judge Rhonda Hurley had not issued her written ruling determining the specifics of the final judgment.
Reached by phone, Andrews said she had been advised by her attorney not to comment on the case.
In his statement, Eason also said he had tendered is resignation to the board, although at presstime, there was a possibility that it may be rescinded after a planned meeting with Ansbach.
Eason said he made the initial decision to resign the day before the trial began, calling it “the most difficult decision that I have had to take in my life.”
Ansbach confirmed that a letter of resignation had been submitted, but said he was also aware Eason may ask to rescind it.
Eason said he is proud of his 17 years at LMUD’s helm.
“I believe that anybody who knows me and my attachment to the Lakeway MUD, will understand how difficult this was to resign from the job that I love.” Eason said. “It has been a very difficult year with this hanging over me,” Eason said. “I can now move on with my life and am in the process of reconsidering my options.”
Eason said he was relieved that the trial had been completed and that he had been vindicated by a jury.
“I want to confirm that the central purpose of my personal suit against Kay Andrews has always been to clear my name and restore my reputation,” Eason said. “I regret that this ever had to go to trial as it did. I hope that the jury’s decision will now put to rest the false allegations Andrews made against me.
“I would like to thank my family, friends, and my attorneys who have all offered me their open-handed support throughout this very challenging period,” he continued. “I would also like to thank those members of the Lakeway MUD Board of Directors who have given fair and patient consideration to my case.”
Eason also thanked the customers of LMUD “for the opportunity to serve them along with the finest water utility staff in the state of Texas.”