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A civil case against Kauai Police Chief Todd Raybuck has been dropped and a police captain has agreed to retire as part of a settlement in the job discrimination lawsuit that led to the chief’s unpaid suspension three years ago for allegedly mocking people of Asian descent in conversation with his officers.

The case was dismissed with prejudice, meaning it cannot be brought back to court. A settlement agreement between Kauai Police Capt. Paul Applegate, the plaintiff, and Kauai County requires Applegate to retire June 1.

Applegate, who has been employed by the Kauai Police Department for more than 25 years, will receive $350,000 as part of a compensation deal, which includes $181,000 in damages, $124,000 in legal fees and $45,000 in back wages. 

District Judge Derrick Watson dismissed the case last week.

Applegate, who is part-Japanese, filed the suit in August 2021 alleging he was passed over for a promotion because of his race — a claim that was later found to be unsubstantiated. He said a lieutenant, who is Hawaiian, was promoted to a vacant assistant chief position before the job was posted, even though Applegate said he was the most experienced and most senior officer and therefore best fit for the job, according to the lawsuit.

When he learned he did not get the promotion, Applegate claimed he met with Raybuck to discuss the selection process. During the meeting Raybuck mocked Japanese people by squinting his eyes and repeatedly bowing his head, saying that he could not trust Japanese people because “they do not always tell the truth,” according to the lawsuit. 

The lawsuit alleges Raybuck then said that Western culture “tells it like it is,” whereas, in Japanese culture, people say, “‘yes, yes, yes’ to your face even when they think the person’s idea is stupid.”  

A Kauai County Human Resources Department investigation found that the chief created a hostile work environment and violated a discrimination policy twice when he mocked people of Asian descent in conversation with other officers.

As a result, Raybuck was suspended without pay for five days in April 2021 and ordered to complete equal employment opportunity and cultural sensitivity training.

The HR investigation did not substantiate allegations made by Applegate that the chief had passed him over for a promotion as a form of retaliation or based on his bias against the officer’s race. Investigators found that the promotion process was fair and objective, according to a county press release.

The chief later , saying in a prepared statement that he values and appreciates the diversity on the police force and in the Kauai community.

“I accept responsibility for my comments and will continue to use this experience to expand my cultural awareness and increase my knowledge and understanding of different cultures,” Raybuck said in the video.

He said he never intended to discriminate against or humiliate others.

The State of Hawaii Organization of Police Officers called on Raybuck to resign immediately. But local leadership, including Mayor Derek Kawakami, voiced support for the chief, citing his good performance record.

Raybuck moved to Kauai from Las Vegas in April 2019 to assume the role of the island’s top cop, quickly earning high marks from his officers and among the public.

Raybuck was dismissed from the case in January, the same month in which the Kauai County Council rejected a request for the county to cover the police chief’s legal fees.

In a prepared statement released by his attorney Jeffrey Portnoy this week, the chief said he is disappointed he didn’t have the opportunity to have his day in court.

“I spent tens of thousands of my own funds on outside counsel to have the facts of this case heard before a judge,” Raybuck said in the statement. “Unfortunately, the county negotiated a settlement rather than take the case to trial.”

Portnoy said his client disagreed with the terms of the settlement, and that he demanded the chief’s dismissal from the case prior to the completion of settlement negotiations. 

“There’s a history on Kauai of lawsuits against police chiefs and other police officials that are settled without the facts ever being heard in court, and frankly, my client was hoping to change that pattern,” Portnoy said. “But unfortunately the county decided to settle this case without his participation.”

On Monday, Applegate, 58, said he was reassigned to captain from his previous role of acting assistant chief of the investigative services division, a job he had held for the past year, as part of a department-wide restructuring.

Per the settlement agreement, Applegate will continue to receive pay commensurate with the acting assistant chief position until his final day of duty. Upon retirement he will also receive a payout for 720 hours of vacation time at a rate of $69 an hour, totaling $49,689, according to the settlement.

Applegate said in a statement that he agreed to settle the case out of a desire to “move forward” rather than spend years locked in litigation.

“The intent behind our agreement was to achieve closure and transition beyond this matter,” he said in a text message this week.

Attorneys representing Kauai County, KPD and the Kauai Police Commission did not respond to phone calls and emails requesting comment.

SHOPO spokesman Dustin DeRollo decried the cost of the case on Kauai taxpayers.

“Our officers and the community already endured the hurt caused when he chose to mock and disparage people of Asian descent,” DeRollo said in a prepared statement. “As if that pain was not enough, now Raybuck’s racist actions are costing the taxpayers $350,000. That’s $350,000 that should be invested in youth programs, economic development or public safety. Instead, it’s being used to clean up yet another Raybuck mess.”

In an unrelated matter, Raybuck could face disciplinary action from the Kauai Police Commission after his loaded firearm was found unattended last month in a police station bathroom stall, according to DeRollo. 

It’s the second time in two years that the chief has left his weapon in the same employee bathroom stall, which is accessible to both police officers and staff, as well as members of the public who’ve been given key card access into the police station, according to DeRollo. 

In both incidents, DeRollo said the police chief failed to file a report, as KPD protocol requires.

“Losing control of your firearm is a very, very big deal as a police officer,” DeRollo said. “Luckily a police officer found it and not a criminal. The fact that it’s not his first time (misplacing his firearm) is shocking. and the other thing that’s concerning is it was hush-hush, there was no report filed, no nothing.”

KPD spokeswoman Tiana Victorino said Raybuck was not available for comment Wednesday and has not been notified that a complaint was filed with the police commission.