It should come as no surprise that the Dallas-based lawyer for former Texas Southmost College Lily Tercero is trying to gouge the community college taxpayers with exorbitant legal fees.
Whether you agree with it or not, a jury awarded Tercero $674.878.66 for lost earnings from her contract and $12.5 million for diminished earning capacity and mental anguish.
The board of trustee had fired her in after it fired her in September 2016 for a number of causes which the members found objectionable.
Mark Regan, of the Brownsville Herald, outlined the reasons.She had, for example, "deliberately and recklessly failed to obtain windstorm insurance with board approval in compliance with state law; allowing TSC checks to be stamped with signatures of people who were no longer trustees; ...failed to timely search and fill the position of vice president for finance and administration; failed to inform the board of the ailing nursing program and its pending suspension; refused a board member’s request that he personally sign and review checks in the amount of $10,000 or more and for not complying with a request for information sought by another member."
Her lawyers prevailed in convincing a jury in federal court that her hearing was a"sham" and they awarded her the verdict. It remains to be seen what the appellate courts decide and whether negotiations will whittle that number down.
Her attorney, Richard A. Illmer, however, wants a big piece of the TSC pie, and he wants it now. Illmer wants $178,306. Illmer says in court documents before U.S. District Judge Fernando Rodriguez Jr. that he is being generous with the college. Instead of his usual rate of $550 per hour, he says he lowered it to $500 per hour and when he saw it was going to take some work, he "reduced" it to $395 per hour.
And if it goes to the 5th Circuit Court of Appeals and oral arguments before the Supreme Court, he wants $270,000.
TSC counters that the reasonable market rate in Brownsville is between $170 and $200 per hour and that the rates Illmer is charging for two paralegals — $225 and $215 per hour – should be in parity with local market rates of between $75 and $90 per hour.
Rapacious is too charitable a word for this guy.
But that is about par for the course with this woman. Remember when she first came to TSC to help it get its independent accreditation after the college threw off the UT System parasite and its dubious "partnership?"
The college not only hired her October 2011 at around $200,000, but also hired her former boss Dr. Leonardo de la Garza at a generous $180,000 price tag for his assistance in "consulting" for Tercero. It was in effect, the same as hiring two presidents.
That "temporary" position lasted for five years until Tercero left. When she was hired October 2011, her application carried a glowing recommendation from de la Garza, her former mentor and boss at the Tarrant County College District.
De la Garza said Tercero "is one of the best," noting she was actively involved in board decisions as well as her church and community
"She worked with me at Sante (sic) Fe Community College and at Tarrant County (College District)," the recommendation read. "Lily is one of the brightest and most hard working individuals I know. She is a star, she just shines, and she will be an outstanding president at Texas Southmost College."
In return, a month later in November 17, 2011, the board approve hiring him to help her in her "transition."
But de La Garza was also – and still was when he came on board with TSC – a vendor and associate of Dynamic Campus, an IT firm which specializes in selling Ebooks (Pearson) and Information Technology (IT) to school districts and entities of higher education like community colleges and universities.
In return, a month later in November 17, 2011, the board approve hiring him to help her in her "transition."
But de La Garza was also – and still was when he came on board with TSC – a vendor and associate of Dynamic Campus, an IT firm which specializes in selling Ebooks (Pearson) and Information Technology (IT) to school districts and entities of higher education like community colleges and universities.
By all measures, De la Garza moved fast.
By May 2012 – some six months later – De la Garza had steered a $1 million IT contract to his "Dynamic Campus," the computer firm for whom he had worked for more than three years before.
Then, on September 2012, four months after the $1 million pact, the company locked three segments of IT services to Dynamic Campus with TSC for an additional $10 million extending into 2015 with an option for another three years.
Who would have thunk that from November 2011 to September 2012, De la Garza would have landed more than $10 million in contracts to his former employer?
Among the "consultant" fees included in the total was a $2,000 monthly retainer and a $1,500 fee for expenses every time he visits Brownsville and the TSC campus.
Once on board, de la Garza took part in advising Tercero and the board on the necessary policy moves and expenditures to make TSC a free-standing institution once it gained operational independence in the fall of 2013. On of those was the colleges' information technology (IT) section.
As a close personal adviser of the new president, he would have had a direct hand in advising the TSC administrative staff on formulating the Requests for Proposals (RFPs) for the new IT setup.
As the local daily reported in September 2011, IT services were some of the many assets that became intertwined as the "partnership" between TSC and UT-Brownsville developed.Right before the May 21, 2012 $1 million award to Dynamic Campus Solutions de la Garza was the featured "special guest" of Dynamic Campus Solutions in Orlando, Fla., during the 2012 American Association of Community Colleges' 92nd Annual Convention April 21-24 where the company invited participants to "stop by and see us and our special guest, Dr. Leonardo de la Garza at booth 822..."
One of the Tercero-de la Garza's "innovations" was the implementation of Ebooks, that is, course text books that students pay for up front with their tuition and are accessible to them online. The service was part of a multimillion deal between TSC and Dynamic Solutions.
Under this "cutting-edge" scheme, students paid an average of $95 for access to each course Ebook per class. This seemed like a good idea until parents and students realized that there was no hard copy of the book available and that there were some severe restrictions.to add insult to injury, if you go to the Pearson website, the same tome in a hard copy is available for some $10 less.
Dynamic Solutions website wrote this about Tercero: "President Lily Tercero’s bold vision to open with full IT functionality was realized, thanks to the resourceful Dynamic Campus team. She was able to put her focus on building academic programs and recruiting faculty and students. “Outsourcing with Dynamic Campus made good business sense,” she concluded.
De la Garza continued to be paid by TSC as a consultant to Tercero on a myriad of matters, but Dynamic Solutions was never been left out.
Just as then-TSC VP Chet Lewis warned that the initial $1 million outlay to the company for IT work was just the beginning, the TSC administration staff came back on September 20, 2012, telling the board that they "had worked with Dynamic Campus to develop an amendment to the contract to proceed with the remaining phase of the proposed services."
They recommended, and the board approved without the need for further RFPs:
1. $2,042,856 for FY 2013 (Jan. 1-Aug. 31, 2013)
2. $3,568,944 for FY 2014 and
3. $3,824,616 for FY 2015 with an option to extend the contract an additional three-year term (until 2018).
If anything, Lily learned well from her "mentor," didn't she? Now she wants another $13 million and her lawyers another three-quarters of a million. Poor Lily. Poor TSC.
17 comments:
WHO CARES!!!!
The case law is solid, any just cause regardless of any wrongdoing by TSC justifies the discharge. The jury improperly mixed the two and failed to only focus on if there was just cause.
The trial court can throw out the verdict or the court of appeals can through out the verdict.
TSC needs a good appellate attorney to do the Motion for New Trial. Lily will get zero and TSC will get attorneys fees.
Bobby WC
Incompetant board members I would say are very expensive. Voter need to remember them at re-election time. Sadly,TSC has become very political and costing taxpayer a lot money.
TSC lawyers are singing all the way to the bank. They conveniently did nothing to avoid this disaster.
The people that were on the board are partly to blame for letting a shyster in our community these fking people.These directors no the game get a lengthy contract and a raise nowing that her time might be up oh well I'll just sue.Just wait when Zendehas from BISD gets the boot she probably will do the same wanting her golden parachute thanks to Joe,Carlos,and other idiot board members. THANKS! For putting BISD AND TSC TAX PAYERS in financial jeopardy, because you all were selfish bastards our community suffers.From here on out these directors contracts should tilt towards the CITIZENS of Brownsville not the employee wtf!! Who's writing these contracts the emplyees that goes for every director tax based organization BISD,PUB,TSC,CITY OF BROWNSVILLE,CAMERON COUNTY, YOU BOARD MEMBERS NEED TO GET YOUR HEAD OUT YOUR ASSES AND start WRKING FOR THE CITIZENS because believe it or not WE OWN YOUR ASSES!!
I guess that's what happens Johnny boy when you leave one of the best university systems in the country and turn it over to the local boys. As that political possum Pogo once said, " We have met the enemy and he is us."
TSC needs to hire Bobby WC since he knows a lot about "solid case law". Take over Bobby WC and do the tax payer a favor.
All you sideline lawyers..did not listen to the audio tape played in the courtroom. No court is going to reverse anything. Tape was very damaging to the TSC board.
Come on Juan. There's nobody to blame, but the board who fired her. After certain board members came on board, this college went to the shits. UT pulling out says alot. And the hourly rate that you mention of $500 hr is excessive and reasonable rate is $175 hr is laughable. Just ask Ernesto Gamez, Rene Oliveira, and the big legal eagles how much they charge an hour. I can tell you it ain't close to the $175 hr you mention. Taxpayers need to vote out the current board and bring in a new board who won't bring their politics and their favorites onto the board. Pura caca on this board. TSC got what they deserved. A multimillion dollar judgment against them.
Stop focusing on Tercero and put the lens on the board members that voted to fire her without cause! Why aren't you demanding that they resign immediately? It boggles the mind that you continue to write stories about Tercero's incompetence yet it was the same board members that fired her, that ended up extending her contract just months earlier. What you are bringing up in this article was known to the board members at the time of extension and they did it anyways! Yeah... maybe she deserved to be fired; but they should have paid out her contract in full. Who is incompetent now? You should also focus on the legal team that advised them to move forward with this "sham" as determined by a jury of our peers in federal court.
Board members... if you are reading this... do the right thing and submit your letters of resignation on the next board meeting.
I hope Tercero will spend some of the money she got on some much needed orthodontic work.
Poor thing looks like she is from Oklahoma or Arkansas.
I taught at TSC when it was reborn and under the Dynamic Classrooms program. It was a terrible idea and certainly rolled the college for millions of mis-spent dollars. That said, the really big bucks came when the Board tried and pull a fast one, with it's sham firing for cause to avoid buying our her contract. She was a terrible president, but the Board is even worse.
To 10:23 PM: Have you looked in the mirror lately?
Another feeble attempt by Adela, Ruben and Trey to deflect blame for screwing things up. Read the comments. The public isn't stupid.
Anybody notice how no one gives a shit what Bobby WC says....
Juan TSC needs to file an appeal and sit it out for the next 5 to 10 years, usually takes around 3-4 years, i hope they do as a taxpayer i do hope so. its my money anyway-taxes i pay,
Chuy...You need to understand that these judgments start paying interest from day of the judgment. So, dragging this out, will only cost more money and not less.
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