Milpitas seeks protective order against former city manager

Milpitas is seeking an order against its former city manager to stop him from leaking information prior to a trial, the latest saga in an ongoing legal battle.

Last December, ousted City Manager Steve McHarris filed a wrongful termination lawsuit against Milpitas, accusing city officials of intimidation and unethical behavior — including Mayor Carmen Montano. The city denied wrongdoing and hired an outside law firm to conduct its own investigation into the same issues.

In new court filings, Milpitas is alleging McHarris sought media coverage to disparage the city and to disclose confidential information about employees. The city is asking the state’s superior court to grant it a protective order to stop McHarris from releasing information gained during the pretrial discovery part of the case to the public.

“The city has every reason to believe that plaintiff’s counsel will continue to utilize his contacts with the media to disseminate confidential material to gain any advantage he can,” the motion filed by law firm Meyers Nave, which is representing the city, read. “A protective order is clearly warranted in such circumstances to protect third parties as well as the city’s attorney-client privilege with its attorneys.”

The city claims McHarris’ lawyer released the deposition of the city’s economic development director to the media.

“This misuse of the discovery process has imposed a substantial burden on the city and its employees who have a right to privacy,” the filing stated.

Lawyers from Myers Nave did not respond to requests for comment.

“The city of Milpitas’ motion for a protective order is just the latest of a long and continuous series of actions to hide evidence in this case from my client and the voting public,” Stephen Jaffe, McHarris’ lawyer, told San José Spotlight. “Specifically, the city is hiding audio recordings of closed council sessions in which McHarris’ termination was discussed and decided. No city should be governed in secret.”

Jaffe also said the city refused to release the findings of the investigation it hired an outside firm to conduct surrounding McHarris’ firing, which Jaffe believes supports their case.

McHarris served as city manager from May 2020 to June 2023, when the Milpitas City Council voted him out.

Councilmember Anthony Phan, who wanted to keep McHarris, told San José Spotlight that City Hall fell apart after his departure.

“There’s been a mass staff exodus, from the entry level to the very top executive team level,” Phan said. “I think it’s a testament to the kind of eroded trust that people have in city leadership.”

While McHarris was city manager, Phan said he put financial controls in place, such as limits to city credit cards and contract requirements. The assistant city manager resigned and several department directors left after his firing, according to Phan. McHarris is the third city manager to be let go since 2017.

McHarris publicly accused Milpitas administrators of a hostile work environment in a claim filed May 2023, detailing instances of intimidation against himself and other city employees. He filed the lawsuit last December following the city’s rejection of his claim.

One of McHarris’ key claims is that his firing violated his contract because the council cannot terminate him within six months of an election.

McHarris also claims Montano and former Mayor Rich Tran pressured him to fire an employee without a reason. When McHarris resisted, he felt he was retaliated against. He also claims Montano tried to pressure him to hire her friend to a city position. McHarris is suing for damages that would exceed a million dollars.

Montano did not respond to a request for comment.

“McHarris has every right to do what he’s doing,” Phan said, “and I hope that justice prevails at the end of the day.”

Contact Joyce Chu at [email protected] or @joyce_speaks on X, formerly known as Twitter.