Exclusive: Rutherfordton $40K Settlement Revealed

The Town of Rutherfordton approved a $40,000 settlement in early November 2025 to resolve a federal lawsuit filed by former police officer Kelby Trejo, according to documents obtained by WCAB News.

Trejo, who joined the Rutherfordton Police Department in 2022 as its youngest and only bilingual officer, was terminated following a patrol car crash in late 2023. His termination led to an EEOC complaint alleging discrimination and retaliation, which eventually became a federal lawsuit against the town, Chief Clint Ingle, and Lt. Freddie Euten.

The settlement was approved by the town council during a closed session at the November 5, 2025, meeting, but the publicly available minutes offered no details on the purpose of the payment. WCAB News obtained clarification after Town Manager Doug Barrick emailed this reporter directly following a public records request, confirming the settlement resolved all claims in Trejo’s federal case.

Settlement Breakdown

Records show the town agreed to pay $40,000, divided as follows:

$12,743.50 to Trejo as wages, subject to standard tax withholdings and issued via Form W-2;

$12,743.50 to Trejo as non-wage compensation, issued via Form 1099;

$14,513.00 to The Fuller Law Firm, P.C., for attorneys’ fees and costs, issued via Form 1099.

The agreement requires each side to bear its own legal costs and includes a release of all claims related to Trejo’s employment. It also bars Trejo from future employment with the town and limits references to his employment history.

The case was formally dismissed with prejudice on Nov. 19, 2025, ending all claims. While the lawsuit is closed, the exclusive disclosure of the settlement purpose fills a gap left by previously vague public records and meeting minutes.

This report marks the first public confirmation of what the $40,000 settlement was for, offering insight into the resolution of a high-profile local employment dispute.

Trejo is now a Hendersonville Police Officer.