OEA, AFT sue to hold Sizemore liable for $2.5 million verdict

On July 7, the Oregon Education Association (OEA) and the American Federation of Teachers (AFT)-Oregon initiated contempt of court proceedings against Sizemore for failing to comply with a court injunction in the case. And on Aug. 11, the two unions filed a new lawsuit to hold Sizemore personally liable for the $2.5 million jury award ã plus attorney fees of $917,000.

The cases stem from two anti-union ballot measures on the 2000 ballot. Leaders of the two unions concluded that Sizemore used fraud and forgery to get the measures on the ballot, and they filed a civil racketeering lawsuit seeking damages equal to triple the amount they had spent fighting the measures. A Multnomah County Circuit Court jury ruled Sept. 27, 2002, that Sizemoreês two organizations ã the political action committee and education foundation of Oregon Taxpayers United ã were guilty of a pattern of criminal behavior. The pattern included forgery and fraud, violations of laws governing use of charitable contributions, and perjury for filing false reports to the state and federal governments. Without these abuses, the jury found, Sizemoreês groups could not have qualified the two initiatives for the ballot, and the expressed purpose of the measures was to bleed unions of resources by making them spend money in opposition. In his official verdict, Judge Jerome LaBarre declared April 30 that Sizemore had run a –sham” charity for his own financial gain.

Sizemore attorney Greg Byrne has since appealed the verdict, and his appeal is likely to be heard next year. But since Sizemoreês groups did not post a bond, the appeal does not delay the courtês judgment.

In the meantime, Sizemore has made no attempt to pay the jury award, and has violated an injunction issued by LaBarre intended to prevent future offenses.

–Heês basically done everything he can to frustrate the judgment,” said attorney Greg Hartman, who represents the OEA in the case.

Because of that, the unions are asking that Sizemore face contempt of court proceedings. A Sept. 23 hearing has been set, at which time Sizemore will have to comply with LaBarreês order or face consequences that could include fines and jail time.

While the original lawsuit went after Sizemoreês organizations, the new suit, filed in Multnomah County, alleges that Sizemore had full knowledge of and authorized the racketeering activities of his organizations, making him personally liable for the monetary judgment.

–All the conduct brought out in the trial Sizemore himself participated in or ratified and therefore could be held personally liable,” Hartman said. –If we prevail, the juryês $2.5 million judgment will also be a judgment against Mr. Sizemore personally.

"The plaintiffs attorneys said they donêt know Sizemoreês net worth. But at the time of the trial he owned a six-bedroom house and 37 acres in Clackamas County, and had paid himself hundreds of thousands of dollars out of his organizationsê accounts over the years. And on April 30 of this year, he sold the radio station he co-owned with millionaire Frank Eisenzimmer for $1.2 million.

AFT attorney Gene Mechanic said it wonêt take much additional evidence to make the case that Sizemore should be held personally liable. –Weêre not dealing with a case of lax oversight; weêre talking about intentional misconduct.”

Since the jury verdict, Sizemore and his close associates have filed about 15 ballot initiatives for the 2004 election, but only seven of those are considered active by the secretary of state, and just one has been approved for circulation ã by unpaid circulators. Patty Wentz of the Voter Education Project said she doesnêt think Sizemore or his organizations are currently doing any signature-gathering.