Lawsuit accuses Baule of gender/racial harassment

Editor's note: This story contains language that may be offensive to some readers.

MUNCIE — Kathy Ray, a former human resources director at Muncie Community Schools, claims in a federal lawsuit that Superintendent Steven Baule regularly made sexist, racist and intimidating remarks.

The lawsuit filed Friday cites more than two dozen instances of Baule's "inappropriate, severely offensive and intimidating conduct that undoubtedly created a hostile work environment for several employees," including Ray, who is white.

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The school district denied the allegations in a statement to The Star Press.

The superintendent, for example, allegedly:

• Said, during a meeting of minority administrators, "I came down because I thought there needed to be another white person in this group."

• Said, during a meeting with principals, that he has "big hands — as an insinuation to the size of his penis."

• Told a joke in front of Ray and others about the length of a donkey's ears and penis.

• Said of the president of the Muncie Teachers Association, "I will dance on Pat Kennedy's grave, and I will dig her grave with her skull."

• Said, in front of several female employees, that he needed to "go home and chase my wife around" and that his wife "should rent me out."

• Told a female employee wrapped in a blanket, "I hope you have something on under that."

• Routinely said in reference to MCS employees: "I don't have to fire people; I make them miserable enough they leave."

School board President Debbie Feick issued a statement about the lawsuit to The Star Press:

"MCS is committed to maintaining an education and work environment that is free from all forms of unlawful harassment. The school board has implemented formal and informal processes for persons who believe that they have been subjected to unlawful harassment. When the allegations asserted in Ms. Ray’s complaint were brought to the attention of the MCS school board, they were promptly investigated and found to be unsubstantiated. MCS denies the allegations in Ms. Ray’s Complaint and will proceed with defending against the lawsuit."

Ray claims in the lawsuit — which names the district and the school board as defendants — that Baule had a history of "intimidating those who opposed him and seeking their termination."

While still employed, Ray complained about Baule to the school district's attorney, who filed a report about Baule's conduct with the school board in August of 2016 and recommended "immediate action," according to the lawsuit.

Shortly afterward, a local attorney was appointed to conduct another investigation of the accusations, after which Baule allegedly told Ray, "I hope you don't know anything about what is going on with all of this stuff … for those who are involved it will be their end."

The superintendent is alleged to have told Ray on another occasion that "I have people who will take care of people" and insinuated he had connections with organized crime in Chicago. 

When Baule purportedly interrogated the HR director a third time about the misconduct complaint, he allegedly told her that he has been in "three knife fights" and remains "unscarred." 

"This comment — combined with Baule's other intimidating actions and statements — caused plaintiff (Ray) to believe that if she participated in the investigation she would be either fired or physically harmed," the lawsuit claims.

Ray says she had no other choice but to resign, on Sept. 8, 2016. After a nearly 34-year career at MCS, Ray is now an elementary school principal at Yorktown Community Schools.

Read about Kathy Ray's retirement

She recently submitted her 15-month-old letter of resignation from MCS to the state's Distressed Unit Appeal Board (DUAB), which is scheduled to rule Wednesday on whether to take over the operation of the deficit-ridden district.

"Muncie Community Schools deserves to have a superintendent who respects people and treats them in a professional manner," Ray wrote to DUAB members.

In the resignation letter, which school board members received a copy of in September of 2016, Ray reported that she had witnessed "Dr. Baule's bullying, vulgar language (including the 'F' word during meetings, in the administration building hallways, etc.) harassment (gender, sexual, racial and religious), inappropriate comments and actions (including retaliation), and his overall unprofessional behavior."

DUAB Director Courtney Schaafsma confirmed that DUAB members were provided copies of Ray's letter.

"DUAB is reviewing all comments received from the public regarding the situation at Muncie Community Schools," Schaafsma told The Star Press. "DUAB has not verified the … truth or veracity of the allegations made … However, we are reviewing the comments received to determine the appropriate course of action on the fiscal matters within DUAB's authority."

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DUAB is charged by state law with determining whether MCS has implemented a deficit-reduction plan, whether it is making progress toward achieving financial stability, and whether or not it is in the best interest of the students, community, the district and its employees to have the state take full control of the district.

Nine of Baule's 16 cabinet members are female. Black members of the cabinet include his assistant superintendent/HR director DiLynn Phelps; chief information officer Anthony Harvey; director of elementary education Dea Moore-Young; and director of secondary education Cassandra Shipp. The principal at Longfellow Elementary School and two assistant principals at Central high school are black. District spokesperson Anny Pichardo is Hispanic.

The lawsuit, filed by Jason Delk of Muncie, alleges that Baule once joked in front of Ray and other employees that a black person and a Hispanic person could never marry because "their kids would be too lazy to steal."

Ray reportedly filed a charge of discrimination against MCS with the Equal Employment Opportunity Commission on March 8. The commission issued a "notice of rights" to sue on Sept. 8, giving Ray 90 days to file a lawsuit, according to Ray's lawyer.

A spokesman for the commission told The Star Press Title VII of the federal Civil Rights Act of 1964 prohibits the commission from providing any information about a complaint, even whether one was filed, unless the commission files a lawsuit, which is a last resort.

The process after a complaint is filed includes the possibility of mediation, or, in the alternative, an investigation. 

"If we aren't able to determine that the law was violated, we will send you a Notice of Right to Sue," the EEOC says on its website. "This notice gives you permission to file a lawsuit in court. If we determine the law may have been violated, we will try to reach a voluntary settlement with the employer. If we cannot reach a settlement, your case will be referred to our legal staff (or the Department of Justice in certain cases), who will decide whether the agency should file a lawsuit. If we decide not to file a lawsuit, we will give you a Notice of Right to Sue."

Three of Baule's cabinet members (Shipp, Moore-Young and Phelps) submitted letters supporting him to DUAB.

"Most of the negative reaction to the (school) board and current administrators is from those who are unhappy the board is actually addressing its fiscal issues," Moore-Young wrote.

"It takes someone with great knowledge, strength, passion and courage to continue down the path that Dr. Baule has paved," Phelps wrote to DUAB. "The best person I know with the skills and talent to continue and complete the work of Dr. Baule is Dr. Baule."

Shipp wrote that Baule "has remained respectful towards educators, parents, students and community partners in the collaborative process to improve the financial status of the district."

The lawsuit claims Baule told several employees that "retarded kids' ears are below their eyes;" that when discussing a student facing disciplinary issues, he commented, "when he goes to jail, he will meet Tyrone;" that he frequently used the phrase "mental masturbation;" that he described a black employee as "the poster child of colored people and deadlines swishing by;" and that he said the boyfriend of a female candidate for a high-level administrative position "must really be hung."

The lawsuit alleges Baule created a hostile, abusive work environment for which the school board is liable because it tacitly approved his "unlawful conduct." The school board also is liable for Baule's retaliation against Ray for filing a complaint with MCS legal counsel, the lawsuit claims.

A resident of Pendleton, Ray's positions at MCS included 15 years as a teacher at Longfellow, assistant principal at South View Elementary School, principal at Garfield and West View elementary schools, director of elementary education, and HR director.

Seth Slabaugh is an education reporter at The Star Press who can be reached at (765) 213-5834 or seths@muncie.gannett,com.