City moves to dismiss Fallay case

City Attorney Dennis Herrera has filed in a motion to dismiss a former building official’s lawsuit filed in San Francisco federal court against the city seeking tens of millions of dollars in damages.

U.S. District Judge Charles Breyer is scheduled to hear the motion on Nov. 13.

“[Former San Francisco building official Augustine “Gus” Fallay] is now suing the City and various of its employees, as well as two FBI agents and other defendants, based on the false and offensive allegations that he was terminated and prosecuted because of his race and for other improper reasons,” the motion said. “An employment arbitrator has already found that Fallay's discrimination claims are baseless and thus refused to order his reinstatement as a City employee.”

Fallay lost his job more than four years ago amid bribery allegations. The case against him, however, was ultimately dropped and he wanted his job with the city back. But back in May, Fallay lost his appeal with the city to be reinstated.

Fallay then moved forward with a lawsuit against the city seeking $30 million in damages.

Fallay formerly oversaw the Department of Building Inspection’s one-stop permit plan. He was arrested by federal agents in August 2005 after authorities raided the department’s offices on Mission Street during business hours. Fallay was accused of taking bribes, among other charges, during a 12-year period. In June 2007, the District Attorney’s Office dropped its case against Fallay after a jury acquitted him on three counts of taking bribes from a construction contractor and one count of insurance fraud. The jury was deadlocked on 29 other bribery and corruption allegations.

 

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