Former Palmer city manager sues for defamation over job terminations

What you need to know:

• Former Palmer City Manager Stephen Jellie has filed a federal lawsuit in Wyoming, accusing five individuals of conspiring to make false statements that damaged his reputation and caused his termination from his position in Palmer and from his role as fire chief in Teton County, Wyoming.
• The lawsuit alleges defamation, civil conspiracy, and interference with contracts, seeking at least $75,000 in damages for lost wages and harm to Jellie's personal and professional reputation. He is preparing similar suits against individuals in Palmer, he said.
• Jellie resigned from his role in Palmer after criticism of his personnel practices, receiving a $75,000 payout. He previously resigned from roles in Teton County and Ogdensburg, New York, receiving payouts totaling $200,000. 

PALMER – A lawsuit filed by former Palmer City Manager Stephen Jellie alleges a group of current and former Wyoming residents conspired to make false statements that interfered with his employment contracts and led to his termination from positions in Palmer and Teton County, Wyoming.

The lawsuit, filed Wednesday in U.S. District Court in Wyoming, names five individuals who allegedly made false statements about Jellie on social media, sent messages to Palmer city officials during his brief tenure as city manager, or made similar public comments while he was fire chief in Teton County last year, according to the complaint.

“Plaintiff has suffered irreparable damage to his personal and professional reputation, which has now been forever diminished and tarnished,” the complaint states. “Defendants acted together and in concert to harm Plaintiff’s professional and personal reputation and to cause him to be fired from positions for which he was more than qualified.”

The suit alleges the group engaged in defamation, civil conspiracy, and interference with a contract. It seeks at least $75,000 in damages for lost wages and harm to Jellie's reputation.

Jellie said in an interview that he plans to file a similar lawsuit against Palmer residents who made statements against him in public and on social media.

“I will be asking my attorney to look at some of those people as well because I think there are people that crossed the line,” he said.

Jellie resigned as Palmer city manager on Oct. 9 after criticism of his personnel practices and a warning from the city attorney that his actions were placing the city at “imminent threat” of lawsuits. He received a $75,000 payout as part of his separation agreement. Earlier this year, he was paid $150,000 to resign from a job in Teton County amid similar complaints. In early 2023, he resigned as city manager in Ogdensburg, New York, and received a $50,000 contract buyout.

Jellie's separation agreement with Palmer prohibits him from suing the city, current or former city officials, or employees.

The Wyoming lawsuit alleges Gloria Esquerra Courser, Lisa McGee, Daniel Nelson, Laura Beth Coe, and Deborah Lee Tucker made, emailed, or posted false statements about Jellie on social media while he was in Wyoming. It alleges that Courser and Coe also made false statements to Palmer city officials or on Alaska-based social media sites, including a post by Courser calling Jellie a "borderline narcissist."

Four of the defendants — Courser, McGee, Nelson and Coe — are spouses or significant others of current or former Jackson Hole firefighters, Jellie said. Tucker, who lives in California, is president of a Teton County homeowners association, according to the complaint.

Courser said she was surprised by the lawsuit and that her comments were factual.

"He obviously wasn't happy with our activism," she said in an interview.

Coe declined to comment. McGee, Nelson, and Tucker did not respond to requests for comment.

Jellie said there’s a difference between criticizing a public official and making false claims. 

“I’m aware that I am subject to public criticism and public scrutiny, but I will say there’s a difference,” he said. “My understanding of the law is you can criticize, you can speak out, you can voice concern, but you can’t slander and defame anybody, anytime, anywhere.”

Jellie said the lawsuit was filed in federal court instead of Wyoming state court because not all the defendants live in Wyoming.

-- Contact Amy Bushatz at abushatz@matsusentinel.com