Erin Toll is caught in a “hostile environment” since she was stripped of her power and authority as the director of the Colorado Division of Real Estate on March 16, Toll argued in a court document filed today.
In the 12-page motion filed with the State Personnel Board, which seeks to strike a previous motion by the Colorado Attorney General’s office to dismiss Toll’s whistle-blower case, says that “Ms. Toll clearly perceives the environment as absolutely hostile to her.” On Tuesday, private attorney Cathy Greer was hired to replace the attorney general, following a claim by Toll’s lawyer that the AG’s attorney has a conflict of interest. Greer is being paid $200 per hour.
William Finger, Toll’s attorney in the matter, said that the attorney general cannot represent the Department of Regulatory Agencies and its executive director, Barbara Kelley, because it also has represented Toll on numerous matters. The real estate division falls under the umbrella of DORA.
Earlier, the attorney general had argued that Toll could not file a whistle-blower complaint because being placed on paid leave is not a disciplinary action. Kelley placed Toll on paid leave in the wake of publicity following the investigation of a mortgage company, although in the latest motion, Toll said she has never been told why she was put on leave. But among other things, the motion said that the “disclosure of information and testimony at the legislature and event connected to such, as well as providing information to the press, is at the heart of the actions taken against her.” That is an apparent allusion to her investigation of American Home Funding and one of its brokers, Sen. Ted Harvey, R-Highlands Ranch. DORA later said that Harvey was not part of the investigation for alleged deceptive advertising. Toll contended in her whistle-blower complaint that Kelley had killed the investigation of American Home Funding.
“Ms. Toll has also made an assertion that she has already suffered disciplinary action, including a claim of constructive discharge,” today’s motion says. “Constructive discharge occurs when an environment becomes so hostile that an employee can no longer continue to work.”
“Extreme mistrust”
The motion, which seeks that the state’s Administrative Law Judge and the Personnel Board strike the Motion to Dismiss (of the whistle-blower complaint and related filings) filed on behalf of DORA, says that there is “an extreme degree of mistrust by and between Ms. Toll and the Executive Director that has severe implications”‘ Kelley is the executive director of DORA. Chris Lines, spokesman for DORA, did not immediately respond. Greer also could not be reached.
The motion says that the executive director, without naming Kelley, has released confidential communications of the attorney general “to Ms. Toll to a third party investigator without safeguards and without Ms. Tolls; authority.” It also said that the executive director is “banning her free speech rights, banning her right to provide information to the legislature, stripping her of all powers of all powers of her office.” It goes on to say that “threats of discipline create an environment that is so hostile that Ms. Toll cannot continue to carry on and effectively function as the Division Director and appropriately exercise powers of the position. Legislators are considering changing the division of real estate to what is known as a Type II Transfer, which would put the head of DORA in charge of most of its current duties, and make it less independent. Kelley has not allowed Toll to give her opinion on the matter to legislators, according to the motion.
It describes the forced leave as “an obvious and illegal attempt to strip Ms. Toll of her authority and powers as a division director. Toll has offered to meet with Kelley to attempt to resolve any differences,”but that offer has fallen on deaf ears, evidencing a clear intent by the Executive Director to remove Ms. Toll form her position and authority,” according to the motion.
No settlement talks
When asked by InsideRealEstateNews.com whether Toll had broached the subject of resignation in exchange for a monetary settlement, Finger said no such talks have occurred.
Kelley has until April 26 to respond to Toll’s grievances.
“The clock is ticking for them,” Finger said.
Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

John Rebchook is a former Rocky Mountain News reporter with more than 30 years of experience in writing and communications... 














nothing but a money grab for her at this point
Trenton summed it up pretty nicely.
At last! Toll is the one caught in the “hostile environment”. A cash settlement would be good; how about $2,500 for her resignation.
Glad to hear she is facing hostility. She doesn't deserve a cash settlement, but imposing a fine on her would make the most sense.
she doesn't need a cash settlement. she is on paid leave. the longer she can drag it out the more money she will make for doing nothing. i love the way she whines when the shoe is on the other foot. the fact the she is on paid leave is ridiculous in the first place. she should have been fired outright. IMHO she is being paid to sue the people that are paying her. i wonder if she can afford her highpriced attorney if she wasn't being paid now. she should be levied a huge fine and then be forced to resign from her office, as well as having to sign a paper stating she waives her rights to any legal action, as she has done to so many others.
“Live by the sword, die by the sword”