EX-SECRETARY FILES LAWSUIT AGAINST CITY

GALVESTON - A former executive assistant to five chiefs of police is
taking the city to court.

Gracie Espinosa was fired last year after her brother, Frank
Espinosa, was arrested on federal drug charges. Former police Chief
Kim O. Schoolcraft in her letter of dismissal cited the appearance of
impropriety and the sensitivity of materials that pass through the
chief's office.

"She was not a player in one bit of it," said Mark Midani, Espinosa's attorney.

Press accounts of the arrest and Espinosa's placement on
administrative leave undermined her standing in the community and
made finding another job difficult, according to the petition.

The lawsuit claims the city's statements in those press accounts were
false and slanderous.

Espinosa is seeking unspecified damages for her loss of income and
benefits. She also demands an appeal hearing before a committee with
at least one impartial member. The city administration previously
upheld her termination.

Carla Cotropia, who represents the city in the case, could not be
reached for comment.

Frank Espinosa was arrested in Galveston on May 31. He pleaded guilty
to conspiracy to possess with intent to distribute more than five
kilograms of cocaine. He is awaiting sentencing.