Elgin mayor responds to $3 million lawsuit over audit allegations

A $3 million lawsuit is putting Elgin City Hall under a brighter spotlight, with Mayor Stanley James Johnson, City Administrator Alex McHaddad and the city itself facing claims that go to how money was spent and how power was used inside the small Union County government.

Brock Eckstein and Laura Eckstein filed the case in Union County Circuit Court as 26CV06926 on Feb. 8, seeking an estimated $3 million in damages. The complaint names the City of Elgin, McHaddad and Johnson as defendants and includes allegations of abuse of process, breach of contract, slander, interference and emotional distress. A motion-to-strike hearing was scheduled for April 14 before Judge Jared D. Boyd, putting the case on an active court track even as the political fallout continues to build.

On April 21, Johnson’s side responded through attorney Daniel Zene Crowe. In a statement issued April 17, Crowe said the mayor views the case as retaliatory, politically motivated and baseless, and said the defense will seek attorney fees under Oregon law. Rather than answer each allegation point by point, the response framed the dispute as a backlash to a financial audit. Crowe said city officials were reviewing allegedly unusual spending, including a $15,000-a-year stipend and personal Amazon purchases.

That makes the lawsuit more than a private legal fight. It raises public-record questions about what city leaders were buying, who approved it and how closely Elgin’s finances were being watched before the dispute became public. If the Ecksteins prevail, the city and its taxpayers could face major financial exposure. If Johnson’s defense succeeds, the public will still be left with questions about the spending review that prompted the fight.

The case also lands in a city where the structure of government has been under review. Elgin voters were told in a 2024 charter amendment ballot title that the city administrator would remain an elected position, the mayor’s term would stay at two years, and the City Council would fill a city administrator vacancy by appointment for the rest of the term. That unusual setup makes the administrator role especially central to city operations, and it heightens the stakes whenever the mayor and administrator are both drawn into a legal dispute.

Johnson’s history in office adds another layer. He was elected mayor in November 2022 with 60.8% of the vote and sworn in in January 2023. The following summer, the Union County Sheriff’s Office cited him in lieu of lodging on fourth-degree assault and disorderly conduct charges after a fight at Elgin Station Bar and Grill, and the case was forwarded to the district attorney. In a city where residents once split over that episode, the new lawsuit now tests not just Johnson’s defense, but the credibility of the people running Elgin City Hall.