News Summary
Lori Ann Farrell Harrison, the former city manager of Costa Mesa, has filed a lawsuit against the city alleging that her termination was retaliatory, linked to her investigation of Mayor John Stephens’ alleged misconduct. Dismissed without notice after submitting a report highlighting potential conflicts of interest and discrimination, she is seeking reinstatement and salary compensation. The lawsuit claims violations of open meeting laws and retaliatory actions by the City Council following her concerns about the mayor’s behavior. Legal proceedings are ongoing as the city council remains silent on the matter.
Costa Mesa – Former city manager Lori Ann Farrell Harrison has filed a lawsuit against the city, claiming that her recent termination was a result of retaliation and misconduct by Mayor John Stephens. Harrison alleges that her dismissal came as a direct consequence of her investigation into the mayor’s alleged misuse of office for personal gain and acts of gender and racial discrimination against city employees.
Harrison served as the city manager for five years before being terminated on May 6, an action she now describes as being executed in bad faith. The lawsuit was filed in the Orange County Superior Court on July 7. Harrison specifically states that she was dismissed without prior notice after submitting a detailed report titled “Formal Complaint – Mayoral Potential Conflicts of Interest, Illicit Interference, and Undue Influence in City Operations, Permitting and Contracts.” This report outlined the mayor’s alleged inappropriate and unlawful conduct.
In her lawsuit, Harrison is seeking six months of her annual salary of $317,000 along with her reinstatement as city manager. She has not pursued any additional monetary compensation but has requested access to records related to her termination. The lawsuit further asserts that the Costa Mesa City Council violated California’s open meeting laws during the process leading to her dismissal. The official explanation provided by the council stated that her termination occurred without cause and was decided by a split vote, in which the mayor abstained from voting.
According to the lawsuit, the City Council took retaliatory actions after Harrison expressed concerns regarding the mayor’s behavior in March. Allegedly, Councilmember Loren Gameros suggested that she should consider early retirement rather than confronting the issues with the mayor. Despite the allegations made by Harrison, the City Council voted to investigate claims against the mayor, hiring an outside investigator with whom Harrison conducted a lengthy interview prior to her termination.
The lawsuit alleges that there is a direct link between the mayor’s purported misconduct and Harrison’s abrupt firing. The night of her dismissal, she was supposedly awaiting updates regarding her performance review and the results of the mayor’s investigation when she was informed of her termination. A local union official had reportedly warned her before the council meeting about potential discussions where blame might be placed on her instead of fulfilling the investigation of the mayor.
Further issues arose during a closed session that lasted approximately 90 minutes prior to Harrison’s termination, with a discussion on her performance occurring without the proper public notice required by law. Upon her dismissal, both Harrison and her staff expressed disbelief, indicating the magnitude of shock surrounding the decision.
As of now, city council members and officials have not publicly commented on the lawsuit or the ongoing investigation concerning the mayor. The city has yet to issue an official response to Harrison’s legal action. However, the City Council has scheduled additional closed sessions on July 15 and August 5 to further discuss the matter.
Harrison is being represented by attorney Therese Cannata from San Francisco. The lawsuit requests that video documentation from the council’s closed sessions be preserved for a period of three years following the resolution of this case.
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Additional Resources
- Los Angeles Times: Farrell Harrison Lawsuit
- Orange County Register: Accusations Against Mayor John Stephens
- Los Angeles Times: Latest News on Farrell Harrison Lawsuit
- Orange County Register: City Council Fires City Manager
- Los Angeles Times: Costa Mesa Settles with Former Police Chief
- Wikipedia: Costa Mesa, California
- Google Search: Costa Mesa
- Google Scholar: Costa Mesa lawsuit
- Encyclopedia Britannica: Costa Mesa
- Google News: Costa Mesa

Author: STAFF HERE COSTA MESA
The Costa Mesa Staff Writer represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, performances at the Pacific Amphitheatre, and community gatherings at The LAB Anti-Mall. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Visit Costa Mesa, plus leading businesses in retail, entertainment, and innovation that shape the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.