As a seasoned observer of organizational dynamics, I find myself deeply troubled by the allegations surrounding Outfest and its former Executive Director, Joey Navarro. The intricacies of this situation are reminiscent of a Shakespearean drama, with power struggles, accusations of discrimination, and self-dealing that would make even the Bard himself raise an eyebrow.
Following a turbulent period marked by disagreements within and external turmoil, the organization known as Outfest found itself embroiled in a lawsuit filed by its ex-executive director, alleging defamation, harassment, and discriminatory practices.
Damien Navarro contends he repeatedly alerted Outfest’s board about the organization’s critical financial state, which some board members blamed him for causing their downfall. However, he alleges that the board refused to address the issue and instead launched a smear campaign against him when he voiced concerns about discrimination within the film festival, in an attempt to oust him from his leadership role.
In his role as the first person of color at the helm of Outfest, Navarro anticipated a welcoming environment grounded in common values. However, what he encountered instead was deeply ingrained racism within the system, self-serving behavior, and retaliation that not only threatened his leadership but also the core mission of the organization itself.
As a devoted supporter, I’m here to clarify some misconceptions that have been circulating. Unfortunately, under Mr. Navarro’s leadership, the Outfest Board felt it was necessary to appoint a new executive director, a decision we firmly stand behind as being in the organization’s best interests. We are confident in this choice and eager to address this issue in due legal process, hoping for a swift resolution.
The long-established Los Angeles LGBTQ film festival known as Outfest, which used to be a staple in the independent cinema scene, encountered difficulties last year, resulting in most of its staff being let go following plans for unionization. In the midst of persistent financial instability, they delayed the Legacy Awards, their primary gala fundraiser where numerous high-profile Hollywood figures were usually recognized. This timing was also accompanied by Navarro, whose contract wasn’t renewed last year, taking a leave of absence, which he explained to The Hollywood Reporter was for an “impartial investigation” into claims of discrimination and harassment that he allegedly experienced from several board members.
In a message to contributors dispatched in October, Outfest leaders expressed their concerns as being extremely critical, implying potential issues related to management.
In a recent turn of events, the daily operations of our organization have been taken over by the Board of Directors. Upon assuming control, we uncovered a significant amount of hidden debt that had not been disclosed to the Board. As a result, Outfest is facing a dire financial situation and needs to immediately secure $750,000 to ensure its stability.
As a gamer, I’d rephrase it like this:
As a gamer stepping into the role of Outfest’s leader, I inherited a gaming guild deeply in debt, battling falling membership numbers and dwindling ticket sales for years. Unforeseen factors like the COVID-19 pandemic, new California labor laws driving up costs, and escalating venue expenses only made things tougher. However, within my first 18 months at the helm, I managed to wipe out the debt and boost our revenue significantly.
However, Navarro asserts that the board chose not to take any action in response to worsening financial statements. He suggests this decision was due to the leadership’s unwillingness to reduce staff, a move allegedly aimed at avoiding negative publicity during the writers and actors strikes. At a meeting in March 2023, Navarro highlighted the tight budget situation, stating that reserves could only cover payroll until May. Yet, his warnings were apparently disregarded, as stated in the lawsuit. In a letter to the board sent the following month, he wrote, “Outfest must carefully manage its expenses to meet financial commitments,” according to the complaint.
According to Rob Hennig, Navarro regularly informed the board members about the financial status of the organization throughout the process. However, it seems that the board did not take any steps to boost income or cut costs.
The responsibility of board members towards the organization involves contributing or raising a minimum of $10,000 each year to Outfest. Navarro asserts that most of the board has repeatedly fallen short of this standard, with board member Alexis Fish allegedly declining to participate in fundraising activities. According to the lawsuit, only about 30% of the board have been meeting the minimum requirement over the past two years, leading to a budget deficit of approximately half a million dollars.
Furthermore, the complaint describes a string of conflicts between Navarro and various board members due to accusations of harassment and bias. In 2022, he expressed worries about Outfest’s supposedly discriminatory actions towards Latinos, as well as allegations involving himself. This led board members such as Fish and Valerie Stadler (all mentioned in the complaint) to start a “counterattack” intended to weaken his leadership, according to the lawsuit. Some instances they are accused of: stirring up staff against Navarro by spreading unfounded rumors about his impending dismissal, excluding him from board meetings and launching unnecessary investigations into suspected misconduct. This included an examination into his husband, who isn’t associated with Outfest, supposedly flirting with an actor at an event, as well as claims of discrimination against female and Black staff members by Navarro. However, independent investigations conducted by the Fromholz firm found no evidence to support these allegations, according to Navarro.
As a supporter, I’d say it like this: “I was the one who had an investigation launched against me, triggered by accusations that turned out to be baseless and retaliatory. The examination conducted by the firm found no proof of any biased or discriminatory actions on my part.
The lawsuit underscores the fact that the board neglected to probe into allegations of discrimination or harassment made by Navarro.
The complaint additionally includes accusations that board members engaged in self-dealing. Navarro claims Fish repeatedly tried to arrange screenings for films she had a personal and financial connection to at Outfest, such as a documentary about Susan Feniger, despite her supposed role as the business development director for the chef. In 2022, Stadler proposed showing a movie where she served as an executive producer on the opening night of Outfest. Upon these proposals, Navarro expressed concerns over potential conflicts of interest.
In August 2023, the board decided not to renew Navarro’s contract as executive director, an action accused in a lawsuit as unlawful discrimination and retaliation. He had taken a temporary leave of absence in September, which came four months before his contract was due for renewal.
Executive Director Christopher Racster is currently the only employee of the organization.
In December, The Los Angeles Times published a report stating that Outfest’s downfall was primarily due to mismanagement by Navarro. Addressing allegations, which originated from unidentified sources, about him arranging for the organization to pay for John Waters’ star on the Hollywood Walk of Fame without board approval, Navarro asserts that there was “no secret deal” and claims that the arrangement was made openly with the full knowledge of the board.
I stand by the accuracy of our financial dealings regarding the $700,000 estate gift received by Outfest. All expenditures have been meticulously documented and reported, ensuring transparency throughout. The board was consistently informed about how these funds were being utilized, and any suggestions of misuse or lack of clarity are unfounded. Our financial decisions have always aligned with Outfest’s mission, under the watchful eye of our finance committee.
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2024-10-12 00:28