Former Biddeford City Manager James Bennett has filed a civil complaint against the city, Biddeford Assistant to the City Manager Danica Lamontagne confirmed.

The city has not released details of the complaint, but confirmed that the matter is now before the court.

“The city has submitted both an answer and a counterclaim for declaratory judgment in response,” Lamontagne said.

Bennett announced his phased resignation in October 2024, with his official last day in office slated for April 18, 2025.

However, in February, Bennett was placed on paid administrative leave, and did not return to office. Biddeford City Council appointed Chief Operating Officer Brian Phinney as acting city manager.

The city did not comment on the reason for Bennett’s leave, but assured residents that the city was in “good hands” with Phinney.

“We remain committed to delivering high-quality services and advancing key projects and priorities,” Mayor Martin Grohman said at the time.

In the 10 years that Bennett served as city manager, he faced backlash from the community, including concerns about rapid employee turnover.

Seven finance directors left their positions in Biddeford under Bennett’s direction, all within a five-year period.

A public review of the city’s fiscal year 2023 audit, conducted by accounting firm Runyon Kersteen Ouellette, turned up questions about Bennett’s performance.

“We found several serious deficiencies,” said Sarah Dodge, an accountant at Runyon Kersteen Ouellette.

Included in the deficiencies was an absence of cash reconciliations and what appeared to be a mismanagement of federal grant money that was awarded to the city.

“Cash accounts should be reconciled at least monthly,” Dodge said. “During 2023, monthly reconciliations as a city weren’t performed at all.”

Despite finding multiple deficiencies in the FY2023 audit, Runyon Kersteen Ouellette did not find any evidence of fraudulent activity.

In an email, Lamontagne said the city could not comment further on the matter of Bennett’s lawsuit.

“The city is committed to transparency but must also follow the applicable law in regards to employment and legal matters,” Lamontagne said.

Phinney remains in his role as acting city manager and newly appointed City Manager Truc Dever will assume her role in August.