A federal jury’s unanimous verdict against the city of Fresno means local taxpayers could be on the hook for more than $15 million but city leaders say they’re weighing an appeal of such a large verdict.
The eight-member jury — four men and four women — awarded plaintiff La-Kebbia “Kiki” Wilson $15 million and co-plaintiff Charles Smith $400,000 on March 11, agreeing that the two former code enforcement employees were retaliated against and subjected to racism in their workplace.
The combined $15.4 million judgment followed a legal fight that stretched more than seven years — raising pointed questions about how much Fresno already spent on contracted attorneys to defend the case rather than resolve it sooner.
FULL COVERAGE
March 11, 2026: Jury awards $15M to Fresno worker called N-word. City ‘never took it seriously’March 12, 2026: After $15.4M verdict, Fresno leader says city must pay out, ‘take responsibility’Feb. 27, 2026: City worker in Fresno race discrimination lawsuit testifies. ‘I’m still so angry’Feb. 26, 2026: Former City of Fresno employee testifies he was shocked at supervisor’s racist remarkNov. 6, 2019: City employee says co-worker harassed him. She says he used the N-word, suits sayWhat this means for the city
Councilmember Mike Karbassi left the door open for a potential appeal but did not mince words about the financial stakes.
“While I am very sensitive to the allegations, I also have a responsibility to protect the financial well-being of our current public employees who provide vital services to the public,” Karbassi said in a statement.
Karbassi also sought to distance the current administration from the case’s origins: “I want to be very clear that this all happened under a different administration, when code enforcement was not under the direction of the city attorney and City Council.”
City Attorney Andrew Janz issued a statement following the verdict, thanking the jury and the judge. He noted his comments are limited because the litigation could continue — a signal that an appeal remains under consideration. Whether an appeal would ultimately reduce the city’s liability or simply add to the legal costs is unknown.
Seven years in court
The employees’ attorney, Kevin Schwin, did not hold back on the city’s decision to fight the case for more than seven years rather than settle.
“We proved our case, and the city of Fresno never took this case seriously,” he said. “They fought it for over seven years in court, and we finally had our day in court and justice prevailed.”
The case went to a 10-day trial in U.S. District Judge Kirk E. Sherriff’s courtroom. During that trial, former City Attorney Doug Sloan, who now is Fresno County counsel, and former Human Resources Director Jeff Cardell, who now works for Fresno Housing Authority, both took the stand to defend their actions.
The city’s contracted attorneys argued throughout the trial that Wilson was not reprimanded for her language alone, but for a series of interactions in which city employees found her to be aggressive.
Wilson and her attorney noted that the judge did not allow evidence they said they believed strengthened their case, including a Confederate flag and a racist depiction of President Barack Obama. Even without that evidence, the jury sided unanimously with the plaintiffs.
What the jury heard
The case centered on events in the city’s code enforcement department, particularly around July 2018.
Smith testified — sometimes through tears — that supervisor Howard Lacy made derogatory and racist remarks about Wilson, who was the only Black person in the department. Smith said Lacy called Wilson an “entitled (N-word)” and claimed she played the race card to her benefit. On another occasion, Lacy described Wilson as “lazy and a piece of sh–.”
Smith said he felt torn about his friendship with Lacy and the things the supervisor was saying about Wilson.
“First and foremost he was my friend,” Smith said. “I wish he had just apologized.”
During his testimony, Lacy denied ever using those words. An internal investigation came back without finding he had used the word, according to testimony. Lacy also filed his own competing lawsuit in 2019 to try to halt what he described as repeated false accusations. His lawsuit failed the same year and never went to trial.
When Wilson learned what Lacy had said, she reacted with an outburst — walking through the hall of the code enforcement division and loudly exclaiming that the higher-ranking city officials were “all f—-ing liars.” She was disciplined for it.
During his closing statement, Schwin said the city’s actions defied logic as Wilson was disciplined for using the F-word, but the supervisor received no repercussions after he was accused of using the N-word. During the city’s investigation of Lacy, they also investigated Wilson. As the victim of that incident, she should not have been under investigation, Schwin said.
Lacy was not disciplined after the investigation came back inconclusive.
Wilson’s testimony: Years of workplace mistreatment
Wilson, 55, testified about accumulating mistreatment in the workplace that she said intensified after she returned to code enforcement in 2016. She was among others laid off in 2013 as the city faced budget cuts.
She described a pattern of indecencies: She was assigned a truck with seats with exposed bars and given a filthy tool bag. She waited a month to get a cubicle and about six weeks to be issued a cellphone while there were unused cubicles in the building. She said her complaints to higher-ranking officials fell on deaf ears.
“Just simple things to do my job — any little thing — I got pushback,” she said. “I tried never to rock the boat if I didn’t have to.”
“I wanted to make sure no one could say they did not know, and start pointing fingers not wanting to take accountability,” she said.
Wilson also touted herself as a public servant, having worked in public sector jobs and volunteered in victim advocacy. Her husband and son are both police officers in Fresno.
After the verdict, Wilson shed tears as the decision was read in court. Outside the courthouse, she said the size of the verdict may look large, but it does not compare to what she lived through. She said she believed city officials were more interested in protecting each other than investigating her claims.
“I prayed every day, not for a judgment or dollar amount or to be victorious with a dollar amount,” she said. “I prayed every single night, every morning I got up to come this trial, let the city be exposed for who they are.”
Smith: Retaliation and a career cut short
Smith, who is white, joined the city in 2016 as a part-time temporary worker, eventually earning a full-time position. He said he loved his job but alleged he was retaliated against after reporting the supervisor’s remarks — transferred to the “tire team” where city workers recover abandoned tires. Smith left the city after three months.
“The reason I did what I did was to prevent this whole thing from happening,” Smith said. “I wanted this to be amicably resolved.”
An attorney defending the city challenged Smith’s assessment of the supervisor’s views about people of color. The attorney asked Smith if he ever heard the supervisor say anything racist about anyone else. He said no. “Did he ever specifically tell you he did not like African American people,” she asked. Smith replied, “No, but actions speak louder than words.”
Outside the courthouse after the verdict, Smith wiped tears from his eyes.
“Justice prevailed,” he said.
What comes next
Karbassi’s statement and Janz’s guarded comments suggest Fresno has not ruled out an appeal. Whether one is filed — and whether it succeeds — will determine whether the city pays the full $15.4 million or a different amount. What is already certain is that more than seven years of litigation has already cost the city money in contracted legal fees, and the bill is not yet final.
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Reporter Thaddeus Miller has covered cities in the central San Joaquin Valley since 2010, writing about everything from breaking news to government and police accountability. A native of Fresno, he joined The Fresno Bee in 2019 after time in Merced and Los Banos.