By: Valerie Milano
Los Angeles, CA (The Hollywood Times) 10/13/2024 – To borrow a well-worn phrase from the Grateful Dead, “what a long, strange trip it’s been” for Outfest.
After a tumultuous year that saw the venerable organization layoff nearly its entire staff following an effort to unionize, Outfest is now being sued by its former Executive Director, Damien Navarro.
The lawsuit, which was submitted Friday October 11th with the Los Angeles Superior Court, accuses the organization of defamation, harassment, and discrimination. In the filing, Navarro claims Outfest’s board failed to act despite being warned by Navarro about the organization’s severe financial troubles, as well as some board members seeking to tarnish his reputation and push him out of his position as retaliation for his concerns regarding discrimination.
Navarro, who was the first person of color to lead Outfest, issued a statement expressing his disappointment with the organization.
“I anticipated a community rooted in shared values, but I faced systemic racism and retaliatory actions that compromised my leadership and the organization’s mission,” he said.
In its own statement in response to the lawsuit, Outfest called the allegations, “baseless and malicious.”
“During Mr. Navarro’s tenure, the board concluded that appointing a new Executive Director was in Outfest’s best interest, and we stand by this decision as we move forward legally,” they said.
Despite its place as a cornerstone of independent cinema, Outfest has struggled significantly in recent years. Along with last year’s layoffs and labor strife, financial difficulties led to the postponement of the organization’s hallmark event, the Legacy Awards, a prominent fundraising event typically honoring well-known Hollywood figures.
It was during the postponement that Navarro took a leave of absence, a leave he claimed was necessitated by the need to investigate his charges of discrimination and harassment. Outfest’s board disclosed in an email to members that a “dire situation” existed and that a significant undisclosed debt had been concealed. They indicated that the organization urgently needed to raise $750,000 to address its serious financial issues.
Navarro’s lawsuit alleges the statements in the email were defamatory, portraying him as a “pariah in the industry” by suggesting he was responsible for the financial troubles. Navarro contends that the financial issues began long before his tenure as Executive Director in 2019 and that he had repeatedly urged the board to take necessary actions to rectify the situation. Instead, he alleges he became a scapegoat for the board’s mismanagement.
The lawsuit claims Navarro took charge of an organization collared with debt in excess of $250,000, and challenges such as the COVID-19 pandemic, declining ticket sales, and rising operational costs. Navarro claims he eliminated the debt and increased revenue over his first 18 months as director, but ongoing budget deficits were projected to reach $300,000 by March 2023.
Navarro claims the board ignored his warnings about the organization’s finances, opting not to cut staff to avoid negative publicity during the actors’ and writers’ strikes.
Navarro’s attorney, Rob Hennig, supported his client’s claim that he kept board members informed of the organization’s financial situation and that the board failed to act on Navarro’s warnings.
Navarro also claims that most board members did not meet their fundraising responsibilities, leading to a significant budget shortfall.
The lawsuit also details various clashes between Navarro and board members regarding allegations of harassment and discrimination. He raised concerns about discriminatory practices affecting Latino individuals, which prompted a “retaliatory campaign” by some board members against him. This included attempts to turn staff against him and unfounded investigations into his conduct.
Navarro maintains that these investigations were retaliatory and unfounded, with a third-party firm finding no evidence of his wrongdoing. He also states that his claims of discrimination were ignored by the board.
In August 2023, the board voted not to renew Navarro’s contract, which he claims was a discriminatory act. He subsequently took a leave of absence months before his contract was set to expire.
