City Councillor Palosaari, who is being investigated for sexual harassment of female employees, is demanding $2 million in a damages lawsuit

Phoenix attorney Dennis I. Wilenchik has filed a lawsuit against the City of Cottonwood on behalf of current Cottonwood City Councilman Derek Palosaari.

Palosaari was appointed to council on June 6 to fill the vacant seat of Councilwoman Tosca Henry.

Palosaari was the target of a recall petition in January and will not run for re-election in 2024.

Wilenchik’s notice names Cottonwood Mayor Tim Elinski and human resources director Amanda Wilber, as well as former Cottonwood City Manager Scotty Douglass and City Attorney Jenny Winkler. The suit alleges a “coordinated attack on Derek’s character” during a Dec. 19 council meeting that Elinski had placed on the Dec. 18 agenda regarding a resolution condemning Palosaari for allegedly sexually harassing at least five female city employees. The resolution was supported by a memo Wilbur sent to Douglass detailing the alleged harassment.

In his complaint, Palosaari denies “ever having behaved improperly toward a city employee” and states that he has not violated any laws or policies.

The documents, obtained through a public records request and sent to the City of Cottonwood shortly after the Dec. 19 meeting and made available later that month, described an incident that occurred on Dec. 8 at a City of Cottonwood employee recognition event.

The city report states that the victim, whose name was redacted because she was a victim herself, said Palosaari “grabbed me by both shoulders, pulled me toward him and whispered in my ear, ‘I don’t mean to offend you, but have your breasts always been this big?'”

The woman broke away from Palosaari, and her husband, noticing that she was upset, asked Palosaari what he had said. According to the victim’s statement in the report, Palosaari told her husband, “I asked her if her breasts had always been that big.”

The husband pulled Wilbur and Palosaari outside to immediately report the incident. According to Wilber, as stated in the report, the husband stated that Palosaari had just sexually harassed his wife and then repeated the remark, saying that it was inappropriate and disrespectful to her and to him.

“Derek immediately apologized for any offense and later fully admitted the remark,” Wilenchik’s statement said.

Palosaari’s complaint contains various statements regarding his relationship with the victim, who was also not named, which could not be independently verified.

According to the city’s report, the victim spoke to Douglass and Winker the following Monday, December 11, and was assured that they would “make sure she never has to work with Palosaari again.”

“I asked them to make sure Derek stayed away from me,” the victim explained. “Deep down I felt uncomfortable, disrespected and regretful that he didn’t leave. Ultimately, I want to avoid any contact with him in the future.”

The memo states: “Wilker also informed him that he was prohibited from entering non-public areas where city employees work.” However, a Dec. 12 email to Palosaari instead said that Douglass “asked you to refrain from visiting city facilities,” later clarified as “non-public employee areas” in two city buildings, “until we could meet with you.”

Palosaari refused to meet with Douglass, a fact that is concealed in Wilenchik’s claim:

Douglass sent a notice to city employees telling Palosaari to avoid certain areas. A second victim then contacted Wilber and described additional incidents that made her uncomfortable. Palosaari allegedly made comments about her body and clothing, told her “she looked cute,” asked her about her weight loss, came around her desk, approached her head and told her “she smelled good, and smelled her hair.”

The second victim also reported that Palosaari had asked for another person’s contact information to discuss housing, even though that person “does not work in housing and we never give out personal information.” The second victim mentioned comments made by Palosaari about a new employee that made her visibly uncomfortable. Wilber contacted her and asked her for a written statement.

One of the victims also gave Wilber the names of three other women who she said had had similar experiences. Wilber met with them on December 13 and detailed their complaints in a report, a public document presented to Douglass on December 18, titled “Harassment of an Employee by a Council Member.”

Wilenchik’s statement said the investigation was “unjustified and would only serve to encourage others seeking favors to join them.” The statement did not specify what “favor” one or more of the victims allegedly asked for.

Wilenchik’s statement does not address any of the other sexual harassment complaints, except for the inciting incident at the Dec. 8 party.

Wilenchik’s memo first states that Palosaari “never saw any investigation report,” but then states that the investigation report “was presented to council members after a council member requested the report and received it several days after” the December 19 meeting. The memo then lists statements in the report that Palosaari claims he did not see. The memo does not clarify this discrepancy in the facts.

“However, the report somehow got leaked to Verde Valley journalists,” Wilenchik adds.

The Cottonwood Journal Extra requested the human resources report after it was mentioned at the Cottonwood City Council meeting on December 19. City of Cottonwood Public Records Request Portal at cottonwoodaz.govand the 18-page report was submitted as requested on 28 December.

The statement said the harassment complaints were “undated and vague, and no names of individuals claiming to have been victims of Derek were released.”

Victims’ names are routinely blacked out to prevent retaliation or intimidation. EXTRAS The policy is not to publish the names of the victims, even if they are mentioned in the report.

The statement said Palosaari was the victim of defamation, intentional infliction of emotional distress and “misrepresentation.” The statement also said the council violated Palosaari’s rights to equal treatment and due process without an “evidentiary hearing.”

The Due Process Clause states that the government “shall not deprive any person of life, liberty, or property, without due process of law, nor deny to any person within its jurisdiction the equal protection of the law.”

However, Palosaari was never charged with a crime, nor could any legislative body. Wilber’s Dec. 18 email to Douglass specifically noted that the employee handbook rules do not apply to elected council members who are not employees. And the Dec. 19 resolution condemning Palosaari’s conduct toward female employees was the result of a political legislative body, not a court.

Palosaari responded several times to a request for comment on May 10, but did not answer any further questions about his statement by press time.

He wrote: “A small, joking remark to a supposed friend was blown out of proportion and has resulted in such undeserved destruction and annihilation of my life and that of my family (sic) for the rest of my life. The annihilation was brought about by a few misguided individuals who thought this was more important than following the law. This is a sad commentary on the society we have created today and unfortunately it ended up in Cottonwood, Arizona.”

Regarding the identity of “some misguided individuals,” Palosaari also clarified whether he meant the four people named in the statement or the numerous female employees who had come forward with complaints.

Palosaari also did not specify which state or federal law the named individuals or the female victims violated when they filed their complaints of sexual harassment with Human Resources when they were contacted by the EXTRA.

Palosaari is demanding $2 million to settle the claim.

Notice of claim from Cottonwood City Councilman Derek Palosaari:

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