FREEPORT — The battle over leadership at City Hall has moved from the council chambers into the courtroom. Former Freeport City Manager Lance Petty, who was abruptly terminated earlier this year, has filed a lawsuit against the city and Councilmember Jeff Peña, seeking more than $1 million in damages.
The Suit, filed in Brazoria County District Court, alleges that Petty was denied due process, wrongfully terminated, and has his employment contract breached when the council voted to remove him from his post. In addition to the city itself, Peña is named personally, accused of acting beyond his authority in engineering Petty's dismissal.
Petty's firing came after months of tension between him and certain members of the council. Though Freeport officials have not publicly detailed the reasoning behind the termination, city records show that the council moved to end his contract in a split vote, despite Petty having served less than a full year as manager.
City managers in Texas generally serve at the will of city councils, but Petty argues his contract contained protections that the city ignored. His lawsuit claims financial harm, reputation damage, and violation of his constitutional rights under state law.
Councilmember Peña, a frequent critic of Petty during his tenure, is singled out in the legal filing. According to the lawsuit, Peña not only pushed for the firing but also made public statements that contributed to Petty's reputational harm. By including him individually, Petty appears to be seeking accountability beyond the city as an institution.
Reached for comment, Peña has not yet issued a public statement regarding the lawsuit. City officials likewise have remained quiet, citing pending litigation.
The case highlights simmering political divisions in Freeport’s leadership. If successful, Petty’s lawsuit could cost taxpayers significantly and reshape how future contracts for top administrators are structured. It may also force greater transparency in how the city council makes personnel decisions.
Observers note that lawsuits of this type can take months, even years, to resolve. A drawn-out legal fight could add financial strain to a city already navigating debates over tax rates, budgets, and infrastructure projects.
For Freeport residents, the case raises larger questions about governance and accountability. City managers are often tasked with day-to-day operations and long-term planning, making stability in the role critical. The lawsuit not only puts the city’s financial exposure in the spotlight but also deepens political divides in a small coastal community where council decisions already spark close public attention.
The outcome of Petty’s suit could set a precedent for how Freeport — and possibly other small Texas cities — handle future disputes between elected officials and appointed administrators.
TL;DR
Former Freeport City Manager Lance Petty is suing the city and Councilmember Jeff Peña for over $1 million, claiming wrongful termination and breach of contract. Petty argues he was denied due process when fired earlier this year. The case could carry significant financial and political consequences for Freeport and intensify ongoing disputes inside City Hall.
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