Former Rogue Valley Manor executive files suit over his firing

Former Rogue Valley Manor Executive Director Kevin McLoughlin has filed a $1.425 million suit against his one-time employer, Pacific Retirement Service.

In a complaint filed in Jackson County Circuit Court, McLoughlin claims PRS breached its contract with him, failed to provide whistleblower protection and wrongfully discharged him. He seeks back pay, including bonuses and benefits, from his firing in August 2012 through the end of the trial "reasonably believe to be in excess of $675,000." McLoughlin also claims to have suffered non-economic harm in the form of anxiety, worry, distress, embarrassment, and humiliation, and is asking for $750,000 in compensation.

The suit also asked for his reinstatement and punitive damages.

According to court documents, McLoughlin alleges his fiduciary responsibility to the Rogue Valley Manor Board required him to provide information requested by the RVM oversight panel as it geared up for a legal challenge to PRS' control and alleged mismanagement of RVM funds.

In response to McLoughlin's providing data requested by RVM Board lawyers in preparation for a temporary restraining order hearing before Jackson County Circuit Court Judge Phil Arnold, PRS placed the Manor's long-time executive director on administrative leave — barring him from visiting its facilities or communicating with staff, residents, board members, or attorneys representing RVM.

In mid-August the RVM Board concluded that there was "a reasonable factual basis" that PRS had overcharged RVM substantial amounts in fees believed to be in the millions, and potential civil claims for elder abuse could arise as a result of financial exploitation by PRS. The board also determined that the non-profit organization was taking undue and excessive risks with RVM properties and engaging in self-dealing property transactions.

On Aug. 20, the RVM made its pitch for a temporary retraining order, but three days later, Arnold denied the request, saying the Manor's own bylaws establish PRS as having full authority to remove Manor board members and that the there was no basis for the court to step in to protect McLoughlin's job.

PRS fired McLoughlin and dismissed seven of RVM's nine board members on Aug. 24. Manor residents later filed a $30 million class action suit against PRS, but the matter was resolved out of court and approved in January.

McLoughlin declined comment earlier today and his attorney, Richard Yugler of Landye Bennett Blumstein in Portland was not available.

PRS Chief Executive Officer Brian McLemore did not immediately return phone messages or an email requesting comment.

— Greg Stiles

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