County settles for $12 million

COUNCIL BLUFFS — In a case that reached the U.S. Supreme Court, Pottawattamie County has agreed to a $12 million settlement in a civil rights lawsuit brought by Terry Harrington and Curtis W. McGhee Jr.

Under the agreement signed Wednesday, $7.03 million goes to Harrington and $4.97 million to McGhee.

County Attorney Matt Wilber said the settlement will be paid by insurance companies, which will also foot the bill for most of the county’s legal expenses. Pottawattamie County has spent more than $1.6 million on the case in the past two years. The case was litigated for six years.

As part of the settlement, the county and prosecutors did not admit any wrongdoing.

Harrington and McGhee, both of Omaha, were convicted of first-degree murder in the 1977 death of John Schweer, a retired police officer working as a security guard at a Council Bluffs car dealership. They were sentenced to life in prison in 1978.

The Iowa Supreme Court overturned Harrington’s conviction after evidence was introduced showing that police and prosecutors failed to share evidence pointing to another man as a possible suspect.

Some witnesses also recanted their testimony.

Harrington and McGhee filed civil rights lawsuits against Pottawattamie County, former County Attorney Dave Richter and Richter’s former assistant, Joseph Hrvol.

The lawsuits alleged that the prosecutors had the men arrested without probable cause, coerced and coached witnesses, fabricated evidence and concealed evidence that could have cleared the pair.

Prosecutors argued that they were immune from liability under a law protecting state employees acting within the scope of their jobs. The immunity issue reached the U.S. Supreme Court, which heard oral arguments Nov. 4.

Steve Sanders, an attorney representing the county, said a joint motion was filed Wednesday asking the Supreme Court to dismiss the case. He said the settlement makes it moot.

Harrington was freed from prison in April 2003. McGhee was released in September 2003.

Wilber decided not to retry Harrington.

A plea agreement was reached with McGhee, in which he pleaded no contest to second-degree murder and received credit for time served. Under the plea deal, McGhee did not admit guilt.

McGhee has since moved to have his plea set aside, saying it was coerced by Wilber and was based on fabricated evidence. The settlement allows McGhee to continue to challenge his plea and does not end a separate lawsuit against the City of Council Bluffs and three Bluffs police officers.

The Pottawattamie County Board unanimously approved the settlement. Wilber said he, Richter and Hrvol met with Schweer’s family members on Dec. 23 and told them about the settlement.

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