Former chair of Carmel Christkindlmarkt Inc. board files defamation lawsuit against Mayor Sue Finkam

CARMEL, Ind. - The former chair of the Carmel Christkindlmarkt Inc. board has filed a defamation lawsuit against Mayor Sue Finkam and the City of Carmel.




The complaint, which was officially submitted to Hamilton County Superior Court 2 on Tuesday, alleges that Finkam and other City officials tainted Susan S. McDermott's reputation while she was chair of the CCI board.




In the lawsuit, McDermott's legal team claims Finkam and company "embarked on a systematic effort to willfully, wantonly, recklessly, maliciously and/or intentionally make false and defamatory statements regarding McDermott's professional reputation in an attempt to justify Finkam's own actions with respect to CCI."




McDermott's attorneys have indicated that, during an Oct. 7 Carmel City Council meeting, Finkam falsely claimed that McDermott withheld CCI financial information from the City of Carmel. Per the complaint, Finkam also claimed McDermott withheld CCI financial information from the City of Carmel during an Oct. 21 council meeting.




According to McDermott's team, after the aforementioned meetings, Finkam "proceeded to further defame McDermott and smear her professional reputation by posting the video of her comments on Finkam's personal and Carmel social media accounts and on Carmel's 'Fast Friday E-Newsletter.'"




Per the complaint, Finkam also accused McDermott of financial misconduct during interviews with numerous media outlets, including FOX59/CBS4.




The lawsuit indicates that Finkam's statements were false or defamatory because McDermott provided all of the documentation the City requested. According to the complaint, Finkam and City submitted a request for the documentation on July 3. McDermott claims she then submitted the requested paperwork on July 8.




At the time, Finkam and the City were requesting the documentation because they wanted to re-evaluate the city's relationships with nonprofit organizations like Carmel Christkindlmarkt.




Previous reporting indicates Finkam has said the City of Carmel spent approximately $8.3 million on Christkindlmarkt between 2017-23. In October, Finkam reported that she was hoping to help the City recoup the $1.5 million it was expected to spend on Christkindlmarkt in 2024.




Before Finkam was elected Mayor in November 2023, the City had not previously tried to recoup the money it was spending on Christkindlmarkt. In an October interview with FOX59/CBS4, however, Finkam said she thought the money could be better-spent elsewhere.




"The City has a lot of different pressing needs, especially in this climate right now where money is tight, property taxes are higher, expenses are higher, we want to put that to police, fire and infrastructure, whenever possible without harming the market," Finkam said in October.




Finkam ultimately ended up establishing an advisory board to evaluate the City's relationship with Christkindlmarkt and other nonprofits. The founding of the board is ultimately what led tensions between McDermott and Finkam to reach an untenable level.




According to the lawsuit, on Sept. 11, Finkam had asked CCI to send the City a new operating agreement by Sept. 30.




On Sept. 17, the CCI board received a proposed operating agreement from the City. Per the complaint, the City's proposed agreement contained a provision that indicated Carmel "owned" the Christkindlmarkt festival and the intellectual property of CCI.




According to the lawsuit, McDermott and other CCI officials requested a meeting with Finkam on Sept. 24 to discuss the City's proposed agreement. McDermott claims that, during the meeting, the City agreed to re-evaluate its proposal and future financial commitment to Christkindlmarkt in the first quarter of 2025.




On Sept. 25, however, Finkam and the City advised CCI that they were not willing to proceed in any fashion unless CCI accepted all essential points in the City's proposed agreement. Among the essential provisions, according to the complaint, was that the City of Carmel could claim ownership of the Christkindlmarkt festival.




McDermott and other members of the CCI board pushed back against the ownership provision because they worried it could impact CCI's status as a nonprofit with the IRS. CCI sent a compromise to the City on Sept. 30.




On Oct. 3, Finkam called a meeting with CCI. Per the complaint, the purpose of the meeting was to discuss an operating agreement between the City of Carmel and CCI.




In the lawsuit, McDermott called the meeting "a ruse created by Finkam." According to the complaint, "the true purpose of the October 3, 2024, meeting was to terminate two of CCI's board members and replace them with individuals handpicked by Finkam who would sign an operating agreement containing all of the terms Finkam had demanded."




McDermott's attorneys allege that Finkam was not actually present at the meeting. After City officials proceeded with the planned terminations, a press release about the staffing issues was released.




FOX59/CBS4 reported on the meetings and terminations on Oct. 7. The complaint indicates the City offered to allow McDermott to remain on the CCI board. Per the lawsuit, Finkam was the one who appointed McDermott to the CCI board in January 2024.




At the time, Finkam brought McDermott on for her financial and nonprofit expertise, according to the complaint.




McDermott ultimately declined the City's offer to remain on the board because she was concerned Finkam and company intended to force the newly reconstructed CCI board to sign an agreement that allowed the City to claim ownership of the Christkindlmarkt festival.




At the end of the lawsuit, McDemott and her attorneys requested Finkam and the City "be found liable to her for the damage to her professional reputation and that judgment be entered herin against Finkam and Carmel and in favor of McDermott in an amount determined to compenstate McDermott for her damage."




Maria Adele Rosenfeld - the President and CEO of CCI - resigned the same day McDermott filed her lawsuit. FOX59/CBS4 published a report on McDermott's resignation early Tuesday evening.




It is currently unknown if the City of Carmel and CCI reached a new agreement that designates the City as the owner of the festival. It is also unclear if the City recouped the money it spent to set up and help operate Christkindlmarkt in 2024.




Neither CCI nor the City of Carmel have indicated if the nonprofit has been able to structure Christkindlmarkt in a way that will allow it be operated in a capacity that is financially independent from the City.




FOX59/CBS4 reached out to the City of Carmel for a statement on the lawsuit. The City provided the following statement from Samantha Karn, Corporation Counsel:




"Due to pending litigation, we will not comment at this time."





via: https://fox59.com/news/former-chair-of-carmel-christkindlmarkt-inc-board-files-defamation-lawsuit-against-mayor-sue-finkam/