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Erin Toll case costs state $74,000

Erin Toll Glover is receiving $55,000 from the state in a settlement.

Take a Toll poll at the bottom of this article

The state is paying almost $74,000 to settle the Erin Toll case, InsideRealEstateNews.com has learned.

The cost includes more than $55,000 to Toll and $18,400 to a private attorney that represented the state.

Toll, the former director of the Colorado Division of Real Estate, resigned on May 31 and started working as a real estate agent with Perry & Co. on Monday. She had filed a whistle-blower complaint against her boss, Barbara Kelley, head of the Department of Regulatory Agencies, or DORA, but all of those actions are dismissed as part of the settlement. Also, Toll has agreed not to sue or take any other legal actions against state agencies as part of the settlement.

The state has agreed to pay Toll $55,053.93, according to documents obtained through a Colorado Open Records Act request by InsideRealEstateNews.com.

Toll is receiving $37,895 from the Office of Risk Management and another $10,000 from the Risk Management Fund, for a total of $47,895. Those payments are “not designated as wages, salary or back pay,” according to the settlement agreement. “The payments are made in compromise of Ms. Toll’s claim. The payment of $10,000 and $37,895 will be provided to the Law Firm of Frank & Finger for delivery to Ms. Toll.” The agreement also says each side shall bear their own costs for legal fees.  Neither Toll nor state officials could immediately be reached to discuss the details of the settlement.

In addition, Toll is receiving $7,158.93 from DORA, which “includes full payment of all accrued annual leave…as of the date of Ms. Toll’s resignation,” according to the settlement. All of the money is to be paid to Toll within 30 days of her resignation.

No name-calling allowed

The state “does not admit to any impropriety, wrongdoing or liability of any kind whatsoever, but is entering into this Release and Settlement Agreement in compromise of dispute claims for compensatory damage and injunctive relief,” according to the documents. In addition, both the state, Toll and her attorney, have agreed to “refrain from making any disparaging, negative or uncomplimentary statement, whether public or private,” against each other.

Separately, the state has been billed a total of $18,405.92 from the private law firm of Wells, Anderson & Race, LLC. When added to the $55,053.93 to be paid to Toll, the total cost is $73,459.85. Attorney Cathy Greer of Wells, Anderson & Race rm represented the state, after Bill Finger, Toll’s attorney, argued in court documents that the Colorado Attorney General’s office could not represent DORA, as it previously had represented Toll in numerous cases, posing a conflict of interest. The attorney general’s office said it did not have any legal obligation to recuse itself, but did so to avoid any appearance of a conflict of interest.

The state retained Greer at a pre-negotiated price of $200 per hour.

Greer’s law firm billed the state $2,750.20 for April, and that was paid on May 20. At $200 per hour, that equates to 13.75 hours. It also billed the state $15,655.72 for May, which equates to 78.3 hours at $200 per hour. Combined, that comes to 92 hours. The state just received the May bill and has not yet paid it. The state declined to provide InsideRealEstateNews.com with “memos, research and recommendations,” it requested, saying those are “privileged.”

Toll’s lawyer Finger declined to discuss the law firm’s billings or compensation, but only had praise for Greer.

“Cathy is a good lawyer,” Finger said. “Cathy, in all my dealing with her over the years, has always been very professional. Cathy and I have a good working relationship. I respect Cathy wholeheartedly.”

Private attorney’s cost appropriate, reasonable

Greer’s compensation seems reasonable, said Howard B. Gelt, a lawyer with Polsinelli Shughart P.C., who was not involved in the case.

“Based on what you told me, I actually think it is pretty cheap,” said Gelt, a long-time real estate and business attorney. “Quite frankly, $200 bucks per hour is quite reasonable for a somewhat complicated mess like this one. And 92 hours over 45 days for a fairly intensive case certainly seems reasonable.”

Also, the attorney general made the right decision in removing itself from the case, he said.

“When you get into a situation like this, the first thing you have to do is to tell each party you can’t represent either of them,” Gelt said. “When you have a conflict, or an appearance of a conflict, it makes no difference whether it involves private companies and individuals, or the public sector. In both cases, you have to find separate counsel.”

Do you approve of the state paying Toll $55,000 to settle this case?

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Contact John Rebchook at JRCHOOK@gmail.com or 303-945-6865.

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7 comments to Erin Toll case costs state $74,000

  • cherry creek

    she should have been made to pay the state’s legal fees for filing a frivolous action

  • I have to respect her for not finding an ambulance chaser to do a shake down for a lot more money. My guess is she’s got bigger fish to fry.

  • Arch

    The best thing about legal stuff is when it is over. So long, Toll! Now, on to the attitude of CREC. How about an overall adjustment of approach, attitude and face of the agency? Or, better yet: SUNSET.

  • The Referee

    It’s over; BARBARA and TED are the undisputed winners! Congratulations to both of you. You should be proud, you certainly put her in her rightful place; unemployed.

    It’s too bad it cost the taxpayers of Colorado $75,000 however. With any luck, this money will infiltrate and poison Erin’s funds and provide back luck for years to come. Bad karma will surely ensue; if she was smart she wouldn’t take it; instead she should refuse any money that is not rightfully hers and walk away with dignity… But I’ll bet she’s not that smart, or honest. It’s all about her wounded pride and how much she can soak the State for.
    Good riddance Erin Toll, and whatever you do, don’t screw up; we’ll all be watching and waiting for an opportunity to report your a$$ to the commission!

    • Arch

      Sweet! The good old “What goes around; comes around” syndrome. Bye the way – You can issue anonymous complaints.

  • cherry creek

    this was nuthin but a money grab from the start

  • Evil Losses

    It only took a bucket of water in the Wizard Of Oz??