Caldwell settles sexual harassment suit against police chief — who denies ‘wrongdoing’

CALDWELL (Idaho Statesman) — The city of Caldwell has agreed to shell out $1.5 million to settle a sexual harassment lawsuit against the police chief — a sum that is roughly eight times his salary.

Caldwell announced the settlement in a two-sentence news release Thursday, confirming that the parties had “mutually agreed to settle” Allison Butler’s federal lawsuit against Rex Ingram. The city said it was “glad they could reach a resolution”; the settlement’s price tag wasn’t provided.

Not even an hour later, the former police officer’s attorneys announced in their own news release that they’d agreed to settle the lawsuit in exchange for $1.5 million, along with “significant non-monetary relief” aimed at clearing their client’s “good name and reputation as a dedicated law enforcement officer.”

Ingram is the second-highest-paid employee in the city of Caldwell, with an annual income of $185,432.

“While Officer Butler is pleased with the settlement, she wishes she never had to bring a lawsuit in the first place,” her attorneys, Erika Birch and Chad Johnson, wrote in the news release. The lawsuit was also filed against the city, its police department and Jarom Wagoner, who was the mayor at the time.

Butler, who has since left the agency, accused the police chief of making “offensive” and “gendered” comments about her appearance — engaging in a pattern of “inappropriate, gender-based, sexual, possessive and retaliatory behavior.” She accused the chief of violating her civil rights by creating a hostile work environment, discriminating against her and retaliating against her when she reported the discrimination and harassment.

Ingram told the Idaho Statesman that the decision to settle was made by the city’s insurance provider — not the city.

“This settlement included no admission of liability, fault or wrongdoing on my part or that of the Caldwell Police Department,” he said in a statement. “And I strongly deny any wrongdoing.”

This isn’t the first time that the Idaho Counties Risk Management Program, which provides liability and property insurance to local government agencies, has agreed to settle on the city’s behalf. Over the past two years, ICRMP has paid out settlements in two other complaints against the city.

One of those was a $400,000 settlement paid out to Shelli Boggie, the city’s former human resource director, who sued over allegations that she was retaliated against by the City Council, which did not reappoint her after she investigated Butler’s allegations. The other settlement was $150,000 to the chief’s former executive assistant, Gabriela Gudino, who accused the chief of sexual harassment, gender discrimination and retaliation.

City ‘buried’ outside investigation into Butler’s allegations, attorneys say

Concerns regarding Ingram arose in January 2024 after an internal complaint from Butler prompted the then-mayor to direct the city’s human resource director at the time to investigate the allegations, according to Boggie’s lawsuit. The city commissioned Boise-based employment lawyer Doug Plass to conduct an independent investigation into complaints about Ingram’s behavior, according to Boggie’s lawsuit.

Months later, the investigation sustained several of Butler’s allegations, “but abstained from concluding clear violation of law” or of city policy, the lawsuit said. Based on the findings, Boggie formed a recommendation concerning Ingram’s employment with the city and presented it to Wagoner, according to her lawsuit.

That’s when the city had a chance to do the right thing, Butler’s attorneys wrote in their news release. Instead, she alleged the city “buried” the report, ignored the then-human resource director’s recommendations, and gave him a minor discipline, the release said. It’s unclear what Boggie recommended, but she said her decision was based on her opposition to gender-based harassment, discrimination and hostile work environments.

“All this left Officer Butler exposed to further harassment and retaliation which ended her career at CPD,” her attorneys wrote. They hope the settlement highlights what can happen when employers “shirk their responsibility” to take appropriate action when an employee reports sexual harassment, the release added.

As part of the settlement negations, Butler asked that Plass’ outside investigation materials be publicized, according to the release, but the city refused. It will be up to the judge presiding over the lawsuit to “decide what materials can be shielded from public disclosure,” the release said.

“I have faith that the City, under Mayor Eric Phillips, will honor the law and ensure that reports about harassment, discrimination and retaliation are taken seriously even when it implicates the leadership at the top,” Butler wrote in the release, adding that City Council now has the full report. “Going forward, I hope they will take appropriate steps to prevent future harassment and retaliation.

“My former fellow CPD officers, who work tirelessly to make Caldwell a safer community, deserve nothing less,” she continued.

2 lawsuits still pending against Caldwell; Ingram says he’s moving forward

Ingram said he and the city are moving forward.

“My focus remains exactly where it belongs: leading the dedicated men and women of the CPD, maintaining institutional accountability, and ensuring the safety of the Caldwell community,” he told the Statesman. “I am proud of the men and women of my department who have dedicated their lives to protecting and serving our community.”

But Thursday’s settlement isn’t the end.

There are still two active lawsuits against the city, including one from Butler’s husband, former officer Ben Heinrich. He alleged he was “wrongfully terminated” for exercising his right to free speech after he posted flyers downtown petitioning for the removal of Ingram “for his acts of corruption,” referring to allegations that Ingram misused public funds for his own travel and accommodations.

Idaho State Police closed an investigation into Ingram’s spending after an outside prosecutor tapped to investigate the allegations said there was no crime. Heinrich and others posted the flyers throughout the city in February, calling for Ingram’s dismissal. Idaho Dispatch, a conservative news outlet, published an image of the flyers, which pictured Ingram with the words “FIRE PREDATOR & THIEF CHIEF REX INGRAM.”

Another former officer, Nathan Douthit, sued in 2024 over allegations that under Ingram’s leadership the agency misused public funds, and the patrol officer was fired “because he dared question” the chief’s conduct. Both of their lawsuits are ongoing in federal court.