Baltimore County paid $100,000 to settle a lawsuit that its inspector general initiated against a former employee, according to several County Council members who confirmed they were briefed on the agreement earlier this month.

The payment ends a more than one-year court battle that coincided with two county executives’ decisions not to reappoint Kelly Madigan as the county’s inspector general.

The confidential settlement reimburses the law firm of the former county staffer, identified in court papers as Employee A. The council members who confirmed the briefing said they were not told the former employee’s name. They asked not to be identified because it was a legal matter.

At the county’s request to protect the employee‘s confidentiality, Baltimore County Circuit Judge Keith R. Truffer agreed to seal the case April 17. In July, he further ordered the county to deny any Maryland Public Information Act requests related to it, according to a motion document that the county provided to The Banner as a reason for why officials could not comment on the case.

As a result, it is unknown at this time why the county sued the employee on the inspector general’s behalf.

The county also hired a private law firm to assist its Office of the Inspector General when a conflict arises between it and the county attorney or administration, which the council approved a month before the county sued Employee A. The contract allowed spending of up to $150,000 per year for five years.

County officials would not elaborate on the contract with the private firm or explain the timing; the item was not on the council’s original agenda, but administration officials added it as a last-minute addendum prior to the meeting, according to council records.

Madigan’s own annual report, released earlier this month, references a $66,848 expenditure for payments to the IG’s independent legal counsel. Madigan did not return messages seeking comment.

The settlement could shed light on why Madigan, whose peers recently named her Fraud Fighter of the Year, was not reappointed.

Madigan was the county’s first inspector general, filling a position that then-County Executive Johnny Olszewski Jr. created in 2020 after he made a campaign promise to do so. Residents had clamored for a watchdog to rein in waste, fraud and abuse — someone independent, who could follow the facts wherever they led.

Madigan’s term ended in January, after Olszewski was elected to Congress. Olszewski could have reappointed Madigan, but he chose to leave that decision to his successor.

After the council in January appointed Kathy Klausmeier as county executive, Madigan remained in office and tried to schedule a meeting with the new executive, hoping to be reappointed. When the meeting finally happened in May, Klausmeier handed Madigan a letter saying she was not being reappointed but could apply for her job.

After launching a search for a new IG, Klausmeier nominated Khadija Walker, who had worked at the Environmental Protection Agency for 20 years. Walker needed council approval; when she did not get it earlier this month, Klausmeier said she would keep Madigan in a holdover capacity, leaving it to the next county executive to decide who would serve the next term.

Around the time that Walker’s appointment failed, the county attorney, James Benjamin, briefed the council on the settlement with Employee A. Council members who confirmed the account say they were not given many details beyond the amount and that it was settled to avoid the litigation from dragging on.

Klausmeier never indicated that there were any problems with Madigan’s performance. She told The Banner in June that Madigan had “done a good job.”

Klausmeier that same month established a selection committee to interview candidates and choose finalists, and then a second, three-person panel, including Klausmeier, to pick the final candidate. Madigan was a finalist, along with Walker and a third candidate, whom the county did not identify.

After Madigan told reporters she was not being reappointed, hundreds of county residents signed a petition to keep her on the job; dozens participated in rallies outside the Old County Courthouse. Some protest signs called out Klausmeier.

Amid mounting public opposition to Klausmeier’s decision, four of the seven councilmen publicly stated they would only support Madigan for the post. They were Republicans Todd Crandell, David Marks and Wade Kach, as well as Democrat Izzy Patoka. Councilman Mike Ertel ultimately also voted against Walker’s confirmation.

Only Councilmen Julian Jones and Pat Young voted to support Walker. Young said he did so because he perceived his vote as evaluating the nominee in front of him, as opposed to the nominee he would have picked, who he said was Madigan. Young said Walker was qualified.

Jones was the only councilman to enthusiastically support Walker. Madigan had investigated him twice: once for his role in helping get an alley paved for a developer outside his district, and another time for having a “donate” button on his official council emails.

Madigan can serve in the position until a new county executive decides whether to reappoint her. Patoka, Jones and Young are all expected to vie for the executive job, as is Catonsville attorney Nick Stewart. The election will take place in fall 2026.