Former village manager suing Orland Park, mayor, trustee for defamation, more

Orland Park Mayor Keith Pekau: ‘The allegations are baseless’

ORLAND PARK, Ill.

Nearly a year after his resignation, former Orland Park Village Manager Joseph La Margo has filed a lawsuit against Mayor Keith Pekau, Trustee William Healy, the Village of Orland Park and the mayor’s election campaign.

The lawsuit – which was filed on April 10 in the Circuit Court of Cook County – alleges breach of contract, defamation and intentional infliction of emotional distress while seeking more than $225,000 in damages.

La Margo – who is being represented by Heidi Karr Sleper, of Kurtz, Sleper and Exline LLC – entered into a separation agreement with the Village of Orland Park in May 2019. Weeks after he resigned, Village officials publicly announced that La Margo had hired a law firm to investigate alleged irregularities in the Village’s billing and bidding processes. As part of that investigation, the law firm also started an investigation into alleged ethical misconduct by the mayor.

“As the Village Manager, Mr. La Margo had a moral and ethical obligation to look into allegations of corruption in the Village,” said Sleper in a press release published April 20. “He did so in a professional and measured manner that included consulting with the trustees and following the advice of the Village attorneys. Unfortunately, [the] defendants responded by making disparaging remarks against Mr. La Margo that not only breached his separation agreement but also harmed his reputation and caused him economic loss and emotional distress. This lawsuit seeks to remedy the fact that the Village put personal vendettas above the people of the Village of Orland Park and targeted Mr. La Margo.

“Mr. La Margo did not make the decision to file a lawsuit lightly, however, the continuing interference and harm made it clear that he had no other choice.”

Pekau – who as of April 23 had not personally been served with the lawsuit – said he was aware it had been filed because of news reports. He also said that the Village’s attorneys are reviewing the lawsuit.

“The allegations are baseless,” Pekau said.

Pekau said he could not speak to La Margo’s motivations for the lawsuit. However, he did take issue with the timing.

“I find it appalling that in the middle of a health crisis like this, a lawsuit like this was filed,” Pekau said. “We have other things we’re focusing on. Frankly, that’s what I’m focusing on. I’m not spending any time on this lawsuit at this juncture.”

Reached by email on April 25, Village Manager George Koczwara said, “To date, no one has been served.”

Details of the complaint

Richard Free Press obtained a copy of the lawsuit from Sleper on April 20.

The complaint states that in November 2018, La Margo heard from a Public Works employee that “a co-worker of theirs had approached them expressing concern about irregularities in billing and bidding practices of two landscape companies with whom the Village did regular business.” One of those companies was GroundsKeeper Landscape Care, which was previously owned by Mayor Keith Pekau prior to taking office.

As previously reported in the Orland Park Prairie and other newspapers, over the course of several months – and after first consulting with the Village’s attorneys – La Margo entered into a legal services contract with Jones Day to look into the allegations. While the complaint alleges the first phase of the Jones Day investigation was not specifically focused on Pekau, “ethical questions were raised about President Pekau that were necessary to be addressed as well.”

Two days after the April 2019 election – which ushered in three new trustees to the Village Board that were backed by Pekau – La Margo alleges he was asked to meet with Pekau “and forced to resign.”

The Jones Day investigation was halted at that point, and it was not discovered until after La Margo had left the Village.

La Margo’s complaint alleges that comments made by the defendants on multiple occasions after the Jones Day investigation was uncovered violated the separation agreement that the Village entered into with La Margo in May 2019, which included the following provision:

“Employee agrees that he will not make any disparaging comments about the Village or its employees or agents. The Village agrees that its Mayor and Board, as a Mayor and Board, shall not make any public statement during a meeting that is disparaging to Employee.”

La Margo’s complaint also alleges:

• On or around June 10, La Margo claims that Pekau filed a complaint with La Margo’s professional association stating La Margo exceeded his spending authority for the Jones Day investigation and inappropriately accessed the mayor’s email.

  • When reached by email on April 20 to inquire further about this claim and others, Sleper responded that La Margo “has full evidentiary support for his claims, however, I believe it would be inappropriate to discuss the evidence at this stage of the litigation.”

  • Reached by phone on April 26, Pekau said he had no comment on the specific allegation.

• Village Trustee James Dodge and former Trustee Carole Griffin Ruzich told La Margo that Pekau had made comments that “he would do his best to make sure [La Margo] would be unable to obtain future employment after leaving the Village.”

  • Reached by phone on April 23, Pekau stated: “That’s not true.”

  • Reached by phone on April 21, Dodge said that because “it is pending or probable litigation,” he had no comment at this time.

  • Reached by email on April 21, Ruzich said she had not read the allegations of the complaint and did not want to comment at this time.

• On or around Nov. 3, 2019, someone sent a letter to the City of Portage, Michigan’s government – the municipality for which La Margo was interviewing for an open city manager position – stating La Margo could not be trusted and was asked to leave Orland Park “because of his unethical conduct.”

  • A Freedom of Information Act request has been placed to obtain any records of emails or other communications being sent to the City of Portage, Michigan, by an Orland Park resident advising against the hiring of La Margo as city manager. That request is still being processed as of press time.

The lawsuit also alleges – among other accusations – that La Margo was unable to find “comparable employment” in Illinois because of the statements that were made about him.

View the complaint in full.