SEATTLE, WA – The Washington State Department of Transportation, represented by Attorney General Nick Brown’s former law firm, is seeking sanctions against a former employee whistleblower who alleged he was forced to retire due to forecasts he made anticipating gas price increases due to the Climate Commitment Act.
Scott Smith worked at WSDOT as an economist and claims he was fired after refusing to suppress his finding that the carbon auctions under the CCA would add 40-50 cents to the retail price of gas. After filing a lawsuit against WSDOT, Smith eventually filed for a voluntary dismissal of the lawsuit, citing physical and emotional exhaustion.
However, WSDOT’s sanctions is now demanding that Smith and the Citizen Action Defense Fund that represented him pay the state agency’s costs and fees.
The agency alleges that both Smith and CADF knew that their lawsuit was not “well-grounded in fact,” claiming that Smith deleted text messages on his phone that were found on other employees’ phones. WSDOT had requested a forensic examination of Smith’s phone, but it was not conducted prior to the lawsuit’s voluntary dismissal.
After the lawsuit was filed in March 2024, WSDOT filed a motion to dismiss, but the judge ruled that Smith’s case had legal merit.
WSDOT’s case filing seeking sanctions claims that the “suspicious timing (of voluntary dismissal) and other facts make it highly likely these ‘lost’ text messages were deleted by Smith himself, though only a forensic examination of his phone could ascertain that with certainty.”
In an email to The Center Square, CADF wrote that “WSDOT grossly mischaracterizes the events of our client’s voluntary dismissal,” referencing a press release statement announcing that Smith would drop the case.
In their response to WSDOT’s sanction motion, CADF noted that Smith had replaced his personal phone and discovered that not all WhatsApp messages had transferred, due “likely the result of the application’s peculiar encryption features.”
Smith stated in the CADF press release that “the year and a half battle has been emotionally and physically exhausting. By dismissing this lawsuit, I’ll release myself from the unrelenting stress of litigation and finally be able to enjoy my retirement. I’d like to thank the many people who supported me during this very difficult battle.”
CADF’s email to The Center Square also stated that “frankly, WSDOT’s Motion for Sanctions is entirely baseless and our response to their motion – which was filed July 25, 2025 – clearly outlines the substantial evidence that came out during the discovery process that corroborated Scott’s claims and forced him into early retirement. We look forward to defending against their baseless motion in court.”
The court hearing is scheduled for Aug. 22.
Representing WSDOT is Pacifica Law Group, where Brown was one of the law firm’s partners before being elected as state attorney general. According to an analysis of fiscal data obtained from the state, Pacifica has received $7.2 million in contracts from various state agencies since the fiscal year 2022, the vast majority of it through the Department of Enterprise Services during the 2025 fiscal year.