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November 5, 2002TC's ex-housing director sues accountant who issued report- Lorri Burtt sued Ryan Vieth and his firm for defamation, infliction of emotional distressBy BILL O'BRIENRecord-Eagle staff writer TRAVERSE CITY - The former executive director of the Traverse City Housing Commission has filed a lawsuit against the commission's accountant, whose criticisms of the agency's financial management helped lead to her dismissal last week. Former housing director Lorri Burtt has sued accountant Ryan Vieth and his firm, Housing Authority Accounting Specialists Inc. of Onalaska Wis. Burtt alleges Vieth defamed her in a Sept. 13 letter to the commission in which he outlined what he viewed as several ongoing problems with the housing agency's fiscal operations. The suit was filed in 13th Circuit Court on Friday - the same day Burtt was fired on a unanimous vote of the Housing Commission at a special meeting. The lawsuit alleges that Vieth's letter included several "false and libelous statements" concerning the Housing Commission's operations, and that the letter was "alarmist in tone" and misrepresented the commission's actual financial position. "Lorri Burtt has served as executive director for 16 years and she's served the community for 16 years, and Mr. Vieth's letter set in motion a series of events that ended that tenure of service," said C. Enrico Schaefer, Burtt's attorney. "It's certainly not a fitting end to what was otherwise a dedicated and accomplished career (with the city)." While Vieth's letter maintained that some of the Housing Commission's cash and operating reserves were at "dangerously low levels." the lawsuit contends that the agency's monetary reserves were maintained "well within appropriate levels" established by state and federal housing agencies. The suit also maintains that the accountant intentionally sent the critical letter to the Housing Commission while Burtt was on a three-month medical leave this year. The suit also says the statements in the letter caused city officials to contact federal housing authorities about the situation, which led to a preliminary investigation by the FBI. No formal FBI probe was opened although two auditing firms - the city's auditors and another accounting firm hired by the housing commission - are presently reviewing the housing commission's financial records. The lawsuit is also critical of the accounting firm's work for the commission, alleging that Vieth was "consistently more than a month late in performing bank reconciliation functions and has been criticized in the past by (Burtt) for his poor contractual performance." Vieth on Monday said he was aware of the lawsuit, but that attorneys for the accounting firm advised against any making any public statements about the dispute. "Until this all gets resolved, we're not going to make any comment," he said. The suit alleges both defamation of Burtt by the accountant and intentional infliction of emotional distress, claiming that his actions have created "humiliation, embarrassment ... anxiety" and that the incident has aggravated Burtt's pre-existing medical problems. The action seeks an unspecified amount in excess of $25,000, plus reimbursement of court costs and attorney fees. Housing Commission Chairman Peter Marinoff also declined comment on the lawsuit Monday night. The commission is holding a special meeting Wednesday to discuss a plan for naming a new director. |
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