Judge George P. Eichwald said at a hearing Wednesday in Sandoval County 13th Judicial District Court that he will schedule a trial to determine whether the city broke the terms of Palenick's employment contract.
Palenick's lawsuit claims the city owes him more than $120,000 in back pay. He based his claim on the Attorney General's opinion that discussions between a former city mayor and several councilors prior to his firing constituted a violation of the state's Open Meetings Act.
The city has consistently claimed Palenick waived any right to a breach of contract claim by demanding and accepting a $110,000 severance package from the city immediately after his December 2006 termination.