Former GOP chair Carnahan sues party, which fires back with its own suit

(FOX 9) - The bad blood between former Republican Party of Minnesota chairwoman Jennifer Carnahan and the state party continues.

Carnahan filed a lawsuit Thursday against the Minnesota GOP, saying that she "has lost new work opportunities, and she has suffered emotional distress" from "continuing disparagement" against her by Republican officials after she was forced to resign as party chair. Carnahan is seeking at least $50,000. 

In response, the GOP made a counterclaim that accuses Carnahan of self-dealing related to her friendship with accused child sex trafficker Tony Lazzaro and alleging that Carnahan stole a cell phone and computer.

The dueling lawsuits will be the talk of the room Saturday when the Minnesota GOP State Central Committee meets in St. Cloud for party leadership elections.

Carnahan's attorney, Matthew Schaap, said negotiations over the lawsuit have been happening behind the scenes since September, denying that the timing was related to the GOP meeting. "I think it's more of a coincidence," he said in a telephone interview.

In response, GOP officials accused Carnahan of trying to publicize the lawsuit.

"In fact, the party suffered significant damage as a result of Carnahan’s mismanagement and self-dealing," said Mike Lonergan, the Minnesota GOP's executive director. "While the party would prefer to avoid costly litigation, it will vigorously defend itself against these meritless claims and pursue all available remedies.

In August 2021, pressure on Carnahan amplified after Lazzaro, a major donor to the Minnesota GOP, was arrested on federal child sex trafficking charges. Carnahan does not face allegations of criminal wrongdoing.

Then, four former party executive directors accused her of mismanagement and creating a toxic work environment, causing her support on the GOP's executive committee to crumble. Ultimately, Carnahan cast the tiebreaking vote to give herself a $38,000 severance payout to leave the party.

Schaap said the severance that Carnahan agreed to required both sides not to disparage one another. In her court filing, Carnahan alleges that party officials broke that agreement repeatedly for saying that she left the GOP in financial and organizational shambles.

In its counterclaim, the Minnesota GOP says its then-interim chair had no power to execute the agreement that Carnahan now accuses the party of violating. The GOP accuses Carnahan of breach of loyalty over her friendship with Lazzaro and of civil theft, accusing Carnahan of taking a party-issued smartphone and computer. Carnahan's attorney told FOX 9 that the cell phone is Carnahan's personal phone and that the party told her to take the computer.