H-SAN LUIS OBISPO

Jan 8, 2014 12:37 AM by Connie Tran, KSBY News

Two alleged former drug informants want money from City of San Luis Obispo

The San Luis Obispo City Council met in closed session on Tuesday night to discuss legal claims against the city by two alleged former drug informants. Kip Holland, of Avila Beach, and April Stewart, of San Luis Obispo, said Cory Pierce forced them to help him engage in dangerous and illegal activity. Pierce is the disgraced San Luis Obispo Police Detective who was arrested on federal bribery charges in February 2013 and ultimately pleaded guilty to extortion. Pierce was sentenced to 18 months in federal prison in December. Holland and Stewart now want the city of San Luis Obispo to pay.

Holland and Stewart's attorney, Stephen Dunkle, filed their respective claims in April 2013. In the claim, the box checked for claims over $25,000 in Superior Court was checked, but it does not list a specific amount for how much Holland and Stewart are seeking from the city.

City Attorney Christine Dietrick said the city is in communication with Dunkle. Dietrick said the city can either negotiate a settlement, or deny the claims. If the city denies the claims, Dunkle could file a lawsuit against the city on behalf of Holland and Stewart.

Holland and Stewart claim in 2011, they became sources of drugs for Pierce. Pierce was assigned to the Narcotics Task Force with the San Luis Obispo County Sheriff's Office in 2006. The two alleged informants also said Pierce forced them into becoming indentured servitudes, which included keeping them addicted to drugs and Pierce would reward them for acquiring cash, oxycodone and heroin for him.

No action was taken at Tuesday night's closed session. KSBY reached out to Dunkle, but he said he would not comment because the case is pending.

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