Renée Gray, who led Washington County through a severe financial crisis, sued the county and two commissioners after being dismissed with a one-sentence notice. The federal complaint accuses Commissioners David Burns and Billy Howard of defamation, sex discrimination and retaliating against Gray for cooperating with an Attorney General investigation into alleged financial misconduct. The suit alleges improper transfers from the Unorganized Territory account and that outside legal counsel was improperly used. A court has temporarily blocked the firing; responses are due by Aug. 4 and Gray remains on paid leave.
Ousted Washington County Manager Sues Commissioners, Alleging Retaliation, Financial Misconduct and Sex Discrimination
Washington County Manager Renée Gray, far right, listens during a confrontational public meeting July 9 where her lawyer threatened a lawsuit against the County Commission and Commissioners David Burns and Billy Howard individually unless her termination is rescinded. Seated at the bench inside the Machias courtroom are Burns, the chairman, left, Howard and Commissioner Courtney Hammond. Photo by Judith Meyer.
Renée Gray, the Washington County manager who guided the county through last year’s financial emergency, has filed a federal lawsuit against the county and two county commissioners who abruptly fired her with a one-sentence termination notice that gave no cause.
Allegations and Legal Claims
The complaint, filed in federal court, names Commissioners David Burns and Billy Howard and accuses them of defamation, sex discrimination and retaliating against Gray for cooperating with an investigation into county finances led by Attorney General Aaron Frey’s office that began in spring 2025. Gray’s attorney says she became aware of "utter mismanagement" and alleged "civil and/or criminal violations," including transfers from the county’s Unorganized Territory account to cover a cash shortfall.
Disputed Legal Process
Gray’s suit also contends the dismissal violated state law that generally prohibits commissioners from removing most county officials without cause. Her attorney alleges the firing was coordinated with legal advice from an attorney who, the complaint says, was never formally retained by the county through a public vote. The complaint says the two commissioners "conspired" with that attorney to "thwart legal requirements."
Responses From Commissioners
Commissioner Courtney Hammond, who was not named in the suit and said he was unaware of the dismissal plan, has publicly backed Gray: "She has always made sure everything is done out in the open. She never tries to hide anything." Hammond and the other commissioners are all Republicans.
Burns declined to speak directly and referred reporters to his lawyer, who would not comment. Howard told a reporter, "Wait until you get both sides of the story someday," and at a commission meeting the week after the firing Burns said the public would eventually hear "the other side." Lawyers for Burns, Howard and Washington County are due to respond to Gray’s claims by Aug. 4.
Allegations of Sexually Discriminatory Language
The complaint includes allegations of sexist and demeaning language. It says Howard used the word "girl" in a derogatory way to refer to Gray and that Burns once told her not to "put away her waitressing skills." According to the filing, Gray’s personnel file contains no negative performance evaluations or documented cause for termination.
Court Order and Current Status
After Gray filed suit, a court issued a temporary restraining order blocking the county from enforcing her firing. She remains on paid administrative leave while the case proceeds.
Key Dates: The Attorney General’s investigation began in spring 2025; defendants’ responses to the federal complaint are due by Aug. 4.
The allegations are serious and potentially far-reaching for county governance. The controversy comes after county voters rejected an $11 million bond last November intended to address the financial shortfall, leading commissioners to arrange a series of emergency loans to stabilize county finances.
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