City of Kinston settles lawsuit with Howard Dudley for $850,000

The City of Kinston must pay $850,000 toward a $1,850,000 settlement to Howard Dudley who was indicted in 1992 on charges of first-degree sexual offense and taking indecent liberties with a minor. He was convicted after a two-day trial.

"In 2018, Dudley filed a federal civil rights case against the City of Kinston and Officer A.N. Greene seeking compensation,” said City of Kinston attorney James P. Cauley, III. “The lawsuit alleged that the officer was deficient in a child molestation case, and that the city was deficient in the training resulting in a wrongful conviction in 1992 of plaintiff Howard Dudley."

The $850,000 settlement has been paid out of the General Fund. According to the FY 2021-2022 City of Kinston budget, one penny on the tax rate equates to $136,350 in the General Fund. The City of Kinston raised property taxes by $0.04 per $100 of valuation in the 2021/2022 budget.

Source: FY 2021-2022 City of Kinston Manager’s Recommended Budget

The city's insurance will pay the remaining portion of $1,000,000. Dudley was sentenced to concurrent sentences of natural life in prison and three years.

"In 2016, the conviction was reversed and he was released from prison, the state chose not to retry the case,” said Cauley. “The case against the city and its former police officer has now been settled."

Dudley spent nearly 26 years in prison before a North Carolina Superior Court judge vacated his convictions.

"The city, although, having done nothing wrong, has been able to negotiate a settlement that acknowledges the significant risk of a large verdict and limits the city's financial exposure,” said Cauley. “The city and the former officer both deny liability.”

“It was recognized that if this case had gone to trial, the city would have either won big or lost big with potential verdict estimates ranging from zero to $26,000,000 representing one million dollars a year for 26 years of incarceration,” said Cauley.