FAKE-DRUG SUITS MAY COST DALLAS MILLIONS

Other Big Cities Have Paid Big Bucks To End Similar Litigation

Dallas city leaders have faced public relations problems since the
fake-drug scandal surfaced more than nine months ago, but the biggest
problem could turn out to be financial.

Taxpayers could foot the bill for millions of dollars in judgments or
settlements of civil rights lawsuits related to the questionable drug
arrests, based on money paid by other cities in similar litigation, legal
experts say.

Fifteen people have sued the city and the Police Department over their
false arrests for drug trafficking, and more are expected to join the suits
as an FBI investigation continues.

In a similar case, Los Angeles has paid more than $60 million to 50 of 130
people who sued over their false arrests by members of the Police
Department's anti-gang unit. Miami agreed to pay $1.2 million to a single
victim of police corruption after officers were indicted for planting guns
and fake evidence on innocent people.

Dallas Mayor Laura Miller and other elected officials said they gave the
four pending lawsuits no thought during recent budget debates. The city,
which faced a $95 million budget shortfall, paid to finance $6 million in
lawsuit settlements last year to former police commanders who had asserted
that Chief Terrell Bolton wrongly demoted them.

The city has offered a general denial of all allegations that police
commanders enabled the false arrests through poor oversight. In that "rogue
cop" defense, attorneys for the cities argued that victims cannot tap into
city budgets for the misbehavior of a few officers whose supervisors could
not have known that rules were being violated.

Police officials have declined to comment on the lawsuits, citing city
policy about pending litigation.

"You're looking at exposures that could run into the millions of dollars,"
said Dallas lawyer Don Tittle, who is representing most of the plaintiffs
in one suit. "While we don't have a specific amount in mind, we're
certainly going to be seeking every available element of damage that is
allowed under Texas and federal law."

The plaintiffs are among 86 people whose drug trafficking cases have been
dismissed because of the involvement of several narcotics officers and
civilian informants. Three informants, who received up to $200,000 in
payments by the Police Department, have pleaded guilty to planting ground
gypsum - the main ingredient in Sheetrock and pool chalk - on innocent people.

'Vast Body Of Case Law'

Lawyers familiar with civil litigation involving people framed by police
elsewhere say the outcome of the FBI investigation into whether Dallas
police officers knowingly took part is largely irrelevant. Success hinges
on proving whether commanders failed to change flawed police behavior or
policies that permitted abuses, they said.

Burt Neuborne, professor of law at New York University, said cities have
faced huge financial liability in recent years as the number of police
abuse lawsuits soars and juries penalize city governments for the
administrative failures of police departments.

"There is a huge volume of cases like this - I mean huge," said Mr.
Neuborne, who is a past president of the ACLU. "There's a vast body of case
law, and some of the payouts have been very substantial. As a policy maker,
you certainly can't take something like this lightly."

Dallas plaintiffs' lawyers say they will prove that supervisors named in
the lawsuits - including Deputy Chief Bill Turnage, Deputy Chief John
Martinez and Chief Bolton - ignored warning signs of deficient training or
direct notice of other obvious problems.

So far, the Dallas city attorney's office has mounted a broad preliminary
defense similar to those that were unsuccessful in cities such as Los
Angeles; Schenectady, N.Y.; and Oakland, Calif.

"The city cannot be liable simply because one of its employees violates
someone's civil rights," said Assistant City Attorney Mark Goldstucker, who
is handling Dallas' defense in the lawsuits. "The policy or custom has to
be attributable to the city's policy maker, not just to any official, and
it's the city's position that the only policy maker is the City Council,"
which would not have been aware of improper police activities.

Mr. Goldstucker said the plan is to ask a judge to remove the city as a
defendant in the suits on the grounds that any misbehavior by officers was
isolated and not part of any widespread discernible pattern.

Even if the city is removed as a defendant, it can still be held liable in
another way. Under the city code, Dallas can agree to pay if a police
officer named in a lawsuit is found liable for violating a person's civil
rights.

Dallas lawyer Doug Larson is suing on behalf of Dwaine Lord, who says
police and corrupt confidential informants tried but failed to set him up
on drug charges. Mr. Lord would not have been roughed up and had his house
ransacked had police commanders addressed inadequate supervision in the
narcotics unit long ago, Mr. Larson said.

The city also faces civil rights lawsuits from two men who say they were
falsely arrested by former Dallas officers Quentis Roper and Daniel Maples.
The two were convicted of corruption two years ago.

Payouts, Resignations

Civil rights litigation against cities and their police departments led to
multimillion-dollar payments, resignations of police chiefs and the
demotions of commanders.

Oakland lawyer Jim Chanin, who is representing most of the plaintiffs in
lawsuits naming officers, police commanders and the city of Oakland, said
the city has begun settlement negotiations that will involve millions of
dollars because command-level staff members ignored problems.

"They looked the other way. ... Of course they're liable," Mr. Chanin said.
"That's like rolling a ball down the alley and, when the pins go down,
blaming the ball. It's ludicrous."

Los Angeles lawyer Greg Yates, who represents about 45 plaintiffs in the
so-called Ramparts gang unit scandal, said he was able to prove that police
commanders ignored problems for political reasons.

"The Police Department knew they had a problem in this particular division
and they didn't adequately investigate it or adequately discipline these
officers, who went on to continue to do what the command staff knew they
were doing," Mr. Yates said.

In Dallas, a lack of contingency funds last year led city officials to
deplete an emergency fund to pay settlements to the demoted police
commanders. The city, in a rare move, then replenished the emergency fund
through private financing.

David Cook, the city's chief financial officer, said next year's
contingency funds will be at or above their highest levels ever, with
nearly $18.5 million in the emergency fund, and another $4 million in a
contingency reserve. Mr. Cook said the new numbers are the result of a goal
to meet accounting standards, not in anticipation of legal settlements.

Lawsuits In Other Cities

As many as 500 federal civil rights lawsuits are pending against police
departments across the United States. Here's a look at what's happening in
select cities:

. In Miami, 13 officers have been indicted on charges of planting guns and
making up evidence. The city has agreed to pay one victim $1.2 million. At
least three other plaintiffs are suing in federal court.

. In Los Angeles, about 50 of 130 plaintiffs have received settlements of
more than $60 million after members of the police anti-gang unit were
accused of framing gang members in what has become known as the Ramparts
scandal. The city recently decided to stop settling lawsuits because of
fears that the total cost would reach $300 million.

. In Oakland, Calif., where four police officers have been indicted on
civil rights charges, 119 people are suing in federal court. City officials
say that settlements will be in the millions. More than 80 convictions have
been overturned so far.

. In Chicago, a federal civil jury last year awarded $15 million to James
Newsome, who said police framed him on a murder charge that sent him to
prison for 15 years. Four other people have filed civil rights lawsuits
against the Chicago Police Department.

. In Schenectady, N.Y., five of nine plaintiffs alleging civil rights
abuses have received $4.3 million in settlements of federal lawsuits
against the Police Department.

. In Philadelphia, the convictions of more than 150 people were overturned
after a scandal in the late 1990s in which police officers concocted phony
warrants and stole from people suspected of stealing drugs. The city has
paid more than $3.5 million to people suing for being wrongfully arrested
or imprisoned.

Staff writer Dave Michaels contributed to this report.

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