FATE, Texas - The Fate City Council has approved a $250,000 settlement agreement with former Department of Public Safety Chief Lyle Lombard, resolving a personnel dispute that arose after the longtime chief was fired in November 2025 and later threatened federal litigation against the city.
The council voted 4-0 to approve the settlement, with Mayor Andrew Greenberg and Council Member Mark Hatley abstaining, according to a statement released by the City of Fate.
Under the agreement, the city's insurance provider will pay $100,000 of the settlement, while the City of Fate will pay the remaining $150,000.
City officials emphasized that the settlement does not constitute an admission of wrongdoing or liability.
"The agreement resolves the personnel matter and allows Fate to move forward with its day-to-day operations and reflects a mutual resolution and does not represent an admission of liability or wrongdoing by the City," the city said.
The city's insurance carrier recommended approval of the settlement, according to the statement.
The agreement comes nearly nine months after Lombard, who had led Fate's Department of Public Safety for approximately seven and a half years, was terminated on Nov. 21, 2025.
Lombard Had Threatened Federal Lawsuit
Attorneys representing Lombard sent a demand letter to Mayor Greenberg on April 21 seeking a pre-suit resolution of the dispute.
According to the demand letter and proposed federal complaint, Lombard intended to sue in the U.S. District Court for the Eastern District of Texas if the parties could not reach an agreement.
The proposed claims alleged that Lombard's termination violated protections under Texas Government Code § 614.022 as well as his rights under the First and Fourteenth Amendments to the U.S. Constitution.
Those were allegations made on Lombard's behalf and were not findings by a court. The settlement means the dispute has been resolved without the city admitting liability or wrongdoing.
According to the demand letter, Lombard began working for Fate on April 16, 2018, and received strong performance reviews during much of his tenure. The letter also cited recognition Fate received for its low crime rate while Lombard led the public safety department.
Demand Letter Claims Wife's Social Media Activity Played Role
One of the more significant allegations raised by Lombard's attorneys involved social media comments made by his wife about Fate city government.
According to the demand letter, Lombard's wife had publicly commented about local government issues, including what she believed could have been an unlawful City Council quorum or meeting. She also criticized some of the city's public safety marketing efforts and spending.
Lombard's attorneys alleged that his employment problems escalated following those comments.
The letter states that on Oct. 30, 2025, Lombard received a performance review indicating that he "needs improvement" in some areas of governance.
On Nov. 12, according to the letter, Lombard was told in the city manager's office that his employment would be discussed during an executive session at an upcoming council meeting. His attorneys allege he was offered a separation agreement providing two months of severance so that he could "avoid a fight" with the City Council.
Lombard's proposed federal complaint argued that adverse employment action taken against a public employee because of a spouse's protected speech could violate constitutional protections involving freedom of speech and intimate association.
The city has not admitted that Lombard's wife's speech played a role in his termination.
Anonymous Complaints Became Another Point of Dispute
Lombard's attorneys also challenged how complaints against him were handled.
According to the demand letter, Council Member Codi Chinn said during an executive session that she had received anonymous letters containing complaints about Lombard from within the Department of Public Safety.
The letter states that City Manager Michael Kovacs provided Lombard with a written complaint on Nov. 18 that recited allegations contained in the anonymous complaints.
That same day, according to Lombard's attorneys, he was directed to surrender city property including his identification card, credit card, building access card, badge and sidearm.
Lombard was given an opportunity to appeal his termination on Nov. 20 and was terminated the following day.
His attorneys argued that relying on anonymous and unsigned complaints for disciplinary action violated protections they contend applied under Texas Government Code §§ 614.022 and 614.023.
The proposed lawsuit alleged that while authorities could investigate information received anonymously, disciplinary action against a covered peace officer could not be based on such complaints without satisfying statutory requirements.
Again, those assertions represented Lombard's legal position. The dispute was resolved through settlement rather than a court ruling on the merits of those claims.
Council Member Publicly Questioned Firing
Lombard's dismissal also generated disagreement within Fate's city leadership at the time.
Following the November termination, Hatley publicly said he opposed the decision after speaking with the city manager and another executive staff member about the reasons behind it.
"I heard nothing that any reasonable person would interpret as justification for termination," Hatley wrote at the time.
Hatley also said that many of the reasons cited for Lombard's termination were "unsubstantiated, anonymous, or based on information that cannot be verified."
Despite that earlier opposition, Hatley abstained from the council's vote on the settlement.
City Says Settlement Allows Fate to Move Forward
The City of Fate characterized the $250,000 agreement as a practical resolution that allows city leaders and employees to focus on municipal operations rather than continuing the personnel dispute.
"The City remains committed to conducting its business with professionalism, transparency, and fiscal responsibility while respecting the legal process and the privacy of personnel matters," the city said.
Officials also acknowledged Lombard's years leading the city's public safety operations.
"The City appreciates Mr. Lombard's service to the Fate community and wishes him the very best in his future endeavors."
With the settlement approved, the dispute ends without a judicial determination regarding Lombard's allegations or a finding that the City of Fate violated state or federal law.
