Seattle settles libel suit with former cop

The city of Seattle has agreed to pay $12,000 to settle a libel suit filed by former police officer John Powers alleging, among other things, that city officials leaked defamatory statements to Seattle Times reporters.

The settlement puts to rest a $6 million federal lawsuit Powers filed in 2006, claiming that false information cost him his job and his reputation. The city has not admitted to any wrongdoing as part of the settlement.

Powers, an eight-year veteran, was a key figure in a lengthy FBI investigation into alleged on- and off-duty misconduct by several Seattle police officers who patrolled the Belltown neighborhood.

The Seattle Times wrote about the investigation, which stemmed from allegations that Powers and others in 2004 and 2005 accepted favors from businesses and overlooked illegal drug use.

The investigation did not result in criminal charges. However, Powers was fired in 2005 after Police Chief Gil Kerlikowske found several instances of misconduct, including supplying cocaine to a former girlfriend. A civil-service commission later upheld his firing, finding "a wide-ranging pattern of misconduct."

A decision to strip Powers of his license to be a law-enforcement officer is on appeal, according to the city attorney's office.

Under the terms of the settlement, the money will go directly to Powers' attorney, Susan Rae Sampson, as partial payment of her costs and fees.

According to a statement by the city attorney's office, the settlement was a business decision to resolve the case economically. Several city employees were named in the lawsuit, which meant the city was required to hire outside counsel, rather than relying solely on city attorneys.

"The amount represents a fraction of what it would have cost the city to pursue the case through complete dismissal," the statement said.

The Times was not named in the lawsuit; however, three reporters were subpoenaed to reveal their confidential sources. Those subpoenas were ultimately withdrawn.

Maureen O'Hagan: 206-464-2562 or mohagan@seattletimes.com