News Summary
Lori Ann Farrell Harrison, ex-city manager of Costa Mesa, has filed a lawsuit alleging wrongful termination related to her investigation into Mayor John Stephens’ misconduct. Following her dismissal, she seeks $317,000 in salary and her reinstatement, while also raising concerns about transparency in council meetings. The case highlights ongoing tensions within the Costa Mesa City Council and questions regarding the mayor’s alleged misuse of office and discrimination against employees.
Costa Mesa – Lori Ann Farrell Harrison, the former city manager of Costa Mesa, is claiming she was wrongfully terminated due to her investigation into alleged misconduct by Mayor John Stephens. Farrell Harrison, who served as city manager for five years, was dismissed on May 6, 2023, leading her to file a lawsuit alleging retaliation for exposing the mayor’s misuse of office for personal gain and instances of gender and racial discrimination against city employees.
The lawsuit was submitted to the Orange County Superior Court on July 7, 2023. In her complaint, Farrell Harrison is seeking six months of her annual salary, amounting to $317,000, and is requesting records related to her termination. Additionally, her legal action seeks her reinstatement, a court ruling regarding violations of California’s open meeting law during her firing, and the implementation of a policy to ensure that all closed-session council meetings are recorded for at least three years.
Farrell Harrison’s allegations are detailed in a 14-page report that she claims was presented to six members of the Costa Mesa City Council. This report addressed the mayor’s alleged “inappropriate or unlawful activities” and was delivered on April 29, 2023. Following this report, discussions about her job performance began in early May, with a union official warning her about the possibility of termination in a closed session dedicated to council matters. It was during this tense period that Councilmember Loren Gameros suggested to her the option of early retirement. While some council members voted to investigate Farrell Harrison’s allegations against Stephens, the council also held private discussions regarding her potential termination.
On the day of her dismissal, the council voted 4-2-1 to terminate Farrell Harrison without publicly stating a reason. Mayor Stephens abstained from the vote, while City Attorney Kim Barlow characterized the termination as “without cause,” which entitled Farrell Harrison to severance pay in accordance with her employment contract. The city has not yet filed a response to her lawsuit, and discussions regarding the case are scheduled for July 15 and August 5.
Farrell Harrison has accused the council members of diverting the focus from the mayor’s misconduct to justify her firing. Although her lawsuit does not divulge specific details regarding the allegations against Mayor Stephens, it contends that those details are included in the report Farrell Harrison submitted. This lack of specific information leaves many questions unanswered about the extent and nature of the alleged misconduct.
During her tenure as city manager, Farrell Harrison was acknowledged for her efforts to engage historically disenfranchised communities and effectively balanced the city budget amidst the challenges posed by the COVID-19 pandemic. However, her abrupt termination has sparked significant concern among council members who opposed the decision, raising questions about its implications for the governance of Costa Mesa moving forward.
As the case develops, the outcomes of the upcoming discussions are expected to shed further light on the circumstances surrounding Farrell Harrison’s dismissal and the ongoing investigations into Mayor Stephens’ alleged behavior.
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Additional Resources
- Los Angeles Times: Former Costa Mesa City Manager Opens Up on Firing
- Wikipedia: Costa Mesa, California
- Whittier Daily News: Former Costa Mesa Official Accuses Mayor of Illegal Behavior
- Google Search: Costa Mesa city government
- Los Angeles Times: Costa Mesa City Council Votes to Terminate City Manager
- Google Scholar: Costa Mesa city manager lawsuit
- Orange County Register: Costa Mesa City Council Fires Its City Manager
- Encyclopedia Britannica: Costa Mesa

Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER 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, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.