Whitefish, Montana — In a significant legal ruling on Wednesday, a district jury awarded a substantial sum for damages to the former executive director of the Whitefish Housing Authority, finding the public housing entity responsible for defamation. This judgment closed a chapter on a lawsuit that underscores the complexities and potential repercussions of alleged unethical behavior and misinformation within housing authority administration.
The awarded damages totaled $1.5 million to Lori Collins, who served as the executive director, for the tarnishment of her reputation, loss of wages, and emotional distress she suffered. Breakdown of the award included $850,000 specifically for damage to her reputation, indicating the jury’s recognition of the profound impact defamatory statements can have on personal and professional status.
Collins’ legal pursuit began in November 2023 following derogatory statements made by Dwarne Hawkins, her predecessor, which were subsequently circulated in local media outlets. The contentious issue traced back to accusations against Hawkins, who confessed last fall to embezzling over $100,000 from the housing organization.
In a move towards transparency and correction, the Daily Inter Lake and the Whitefish Pilot, which initially published the damaging statements, issued a correction in November 2023. Nonetheless, the lawsuit contended that the Whitefish Housing Authority board failed to adequately address or retract the substantiated defamatory claims.
The jury’s note to Judge Amy Eddy also pointed out the perceived neglect and unprofessionalism extended to Collins by the WHA, suggesting its contribution to further erosion of public trust in the organization.
Reflecting on the judgment, the Whitefish Housing Authority, under acting director Riss Getts, expressed commitment to reassessing its board composition and operational direction. Getts affirmed, “We are working to make sense of what Wednesday’s ruling means for us organizationally and in relation to the greater community. Our mission remains unchanged, to provide safe, decent, and affordable housing to the people of Whitefish. We will update the public as we develop more clarity about our next steps.”
The housing authority operates various housing programs, notably Section 8 and public housing, aimed primarily at assisting low-income residents. It is governed by a seven-member board, illustrating the broader administrative framework within which the controversy unfolded.
Further complicating the Whitefish Housing Authority’s reputation, in October 2024, was the guilty plea by Hawkins to federal charges of stealing from a federally funded organization. He admitted to misappropriating funds through inflated payroll, misuse of credit cards for personal gains, and generating fraudulent invoices. Hawkins now faces up to 10 years in prison, marking a significant fall from his brief leadership tenure that started only in January 2023 and ended abruptly following the discovery of the fraudulent activities.
Scheduled for sentencing on February 7, Hawkins’ case highlights ongoing challenges in governance and oversight within small public bodies, illustrating the critical need for transparency and integrity.
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