Cabarrus County will settle with fired manager over $488,000 in unpaid compensation
Cabarrus County plans to settle a lawsuit with former County Manager Mike Downs, who sued the county over unpaid severance and other compensation, according to court records.
Downs’ attorney said in an email to The Charlotte Observer Tuesday afternoon a hearing scheduled for Wednesday morning was cancelled after the county reported to the court it would settle the matter. The terms of the agreement remain unclear, and recent court documents state the parties will now work on finalizing the settlement. Cabarrus County commissioners held a special meeting Monday to discuss pending litigation with an attorney in closed session and an unrelated fire department matter.
Downs filed a lawsuit against the county in March after he was abruptly fired. The commission also fired former County Attorney Richard Koch the same day in a move Commissioner Kenny Wortman called “political.”
The lawsuit claimed Downs was owed $488,000 from the county, which included unpaid severance for 18 months of his salary and a quarterly bonus. The suit alleged Downs should have been paid on Jan. 31, shortly after his firing. Downs’ attorney Mark Stafford also wrote Downs was entitled to 8% interest on the payment because it was delayed.
Downs is entitled to severance whether he was fired with or without cause, according to the lawsuit.
“The county flagrantly breached Mr. Downs’ employment contract in bad faith... acting as a cabal of ill will in terminating Mr. Downs and replacing him with an inexperienced crony, minion, and clandestine,” Stafford wrote in the lawsuit.
Though the decision to fire Downs was made in a closed session, his termination letter pointed to a “critical failure” for cooperating with the former commission’s decision to purchase an office building for more than the appraised value. The lawsuit takes issue with that reasoning, claiming frustration over the decision should be directed towards former commissioners rather than Downs.
Downs is one of two Cabarrus County managers fired this year. Sean Newton, Downs’ successor, was fired last week after just five months on the job. The decision was made in closed session, and the commission opted not to provide a termination letter to Newton.
Wortman said the decision was necessary even though it made the county look bad to fire two managers in one year. Commissioner Laura Lindsey, who voted in favor of firing Downs and against firing Newton, said last week’s decision was “political retaliation.”
This story was originally published August 26, 2025 at 4:50 PM.
