THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Thursday, March 2, 1995                TAG: 9503020496
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY ALEX MARSHALL, STAFF WRITER 
DATELINE: NORFOLK                            LENGTH: Medium:   53 lines

WORKER SUES NORFOLK, SAYS EX-DIRECTOR DEFAMED HER A SOCIAL SERVICES EMPLOYEE SAYS SHE WAS CALLED A RACIST.

An employee of the city's Human Services department is suing the city for $750,000, claiming the department's former director made defamatory remarks about her and discriminated against her because she is white.

Karen Lindsay Hatch alleges that George G. Musgrove, now assistant city manager of Richmond, referred to her as ``a white racist bitch'' and told one of Hatch's subordinates ``to watch out for your supervisor, she's a racist.''

Musgrove is black. Hatch, a service programs manager in the Division of Social Services, has been a social worker for 24 years. The department is 70 percent minority, and such comments effectively destroyed Hatch's career, the suit alleges.

For four years, Musgrove was director of the Department of Human Services, where he supervised 600 employees and a budget of $30 million. He left in late November for his present position in Richmond.

``Pending litigation, I'm hesitant to make any comment other than to categorically deny any of the assertions in the suit,'' said Musgrove, who was served the court papers on Wednesday in Richmond. ``They are just not true.''

Hatch names two witnesses in the suit who, she says, back up her allegations.

Hatch said she learned of Musgrove's remarks in late February of 1994. Hatch alleges she tried to meet with Musgrove's supervisor, Assistant City Manager George C. Crawley, but was not given the opportunity. Her attorney filed a complaint with the city soon afterward, Hatch said.

Hatch, 47, said she believed she was close to reaching a settlement with the city in November when Norfolk announced that Musgrove was leaving to take a job in Richmond.

``They probably feel that Musgrove is gone and the situation is over,'' Hatch said Wednesday. ``But when you are a social service manager, your ability to work in the field is based on your reputation. And when someone has smeared you as a racist, it makes it difficult to work throughout Tidewater unless Musgrove issues a retraction.''

Hatch still works in the social services division as a program manager, but says her responsibilities and staff have been eliminated. Her job under Musgrove, she said, was to supervise the staff that investigated allegations of child abuse and discrimination against the disabled. ILLUSTRATION: Karen Lindsay Hatch says George G. Musgrove, above, told one of

her subordinates she was a racist.

KEYWORDS: LAWSUIT by CNB