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Texas Judge Awards $6.6 Million to Whistleblowers in Retaliation Case Against AG Ken Paxton

A Texas district court judge has awarded a significant $6.6 million to four whistleblowers who claimed they faced retaliation from Texas Attorney General Ken Paxton after reporting him to the FBI.

The whistleblowers, Blake Brickman, David Maxwell, Mark Penley, and Ryan Vassar, reported Paxton on October 1, 2020, alleging abuse of his office. Remarkably, all four employees were terminated by mid-November of the same year.

Judge Rules on Whistleblower Retaliation

Travis County Judge Catherine Mauzy concluded on Friday that the whistleblowers successfully demonstrated liability, damages, and attorney’s fees in their lawsuit against the attorney general’s office, based on a preponderance of evidence.

The ruling highlighted that the former aides reported their concerns to federal authorities in good faith. Significantly, Paxton’s office did not contest any claims or damages presented in the lawsuit.

In her judgment, Mauzy stated, “Because the Office of the Attorney General violated the Texas Whistleblower Act by firing and otherwise retaliating against the plaintiff for in good faith reporting violations of law by Ken Paxton and OAG, the court hereby renders judgment for plaintiffs.”

Allegations of Misconduct

The court found that the firings occurred as a direct response to the whistleblowers reporting allegations that Paxton had used his position to accept bribes from Nate Paul, an Austin real estate developer and political donor. Notably, Paul employed a woman with whom Paxton had an extramarital affair, raising further ethical questions.

Paxton has consistently denied allegations of bribery and misuse of his office to assist Paul.

Reactions from Attorneys

Tom Nesbitt and TJ Turner, attorneys representing the whistleblowers, expressed their dismay, stating in a joint statement, “It should shock all Texans that their chief law enforcement officer, Ken Paxton, admitted to violating the law, but that is exactly what happened in this case.”

In response, Paxton characterized the judgment as “ridiculous” and stated that it lacked a factual basis or legal grounding. He announced plans to appeal the ruling.

Background of the Investigation

The U.S. federal authorities initiated an investigation into Paxton after eight employees reported potential bribery in his office to the FBI back in 2020. Initially, Paxton sought a settlement for $3.3 million, intended to be funded by the legislature. However, this request was rejected by the state House, which opted to conduct a separate investigation.

In a significant political turn, Paxton faced impeachment in the House in 2023 but was later acquitted by the Senate.

Legal Developments

In November, the state Supreme Court overturned a lower court’s decision that would have mandated Paxton to testify in the ongoing lawsuit, adding another layer of complexity to the case.

Compounding the legal situation, the U.S. Justice Department had previously decided not to pursue its investigation into Paxton in the final weeks of the Biden administration, as reported by The Associated Press.

The Associated Press contributed to this report.

Implications for Texas Law and Governance

This ruling raises significant questions about governance and accountability within Texas’s legal framework. It underscores the importance of protecting whistleblowers who bravely report misconduct within high offices. The measure of justice delivered by Judge Mauzy may serve as a pivotal moment, signaling both legal reaffirmation of whistleblower protections and a warning to those in positions of power against potential abuses.

The outcome of Paxton’s appeal will also be closely watched, as it not only affects the involved parties but could also have broader implications for public trust in Texas’s legal system. As this case unfolds, it remains a critical turning point in the ongoing discourse surrounding ethical governance in public offices.