Jury Awards Local Developer $620,000 in Suit, Bankrupts Smithville Whistleblower

 

$620,000 Judgment Caps Bitter Dispute Tied to 110 Smithville Project, Asbestos Complaint, and Alleged Retaliation

Eric Craig on the right

Smithville — A Clay County jury verdict awarded $620,000 to a local real estate developer, Eric Craig  in a claim he made against a working class whistleblower. The jury found that this  activist Kristine Bunch had intentionally inflicted inflicted emotional distress on the already wealthy real estate developer for a series of online statements she made that accused him of engaging in corrupt business dealings. This closes one chapter of a long-running dispute that some perceive as allegedly growing out of the 110 Smithville Tax Increment Financing (TIF) redevelopment project, but leaves unresolved allegations involving environmental enforcement, policing, and claims of retaliation.

Bunch said her whistle blowing actions stemmed from concerns about asbestos exposure by Craig’s company 110 Smithville LLC which occurred during demolition of the former Spelman Hospital at West Main and Mill Streets  in Smithville— concerns that later became the subject of a state environmental investigation against contractors employed by Craigs company. She is raising funds for her appeal in a Go Fund Me at https://gofund.me/b50f27f4a

Bunch in Center

Asbestos Complaint and State Findings

According to state inspection records, Bunch filed a complaint with the Missouri Department of Natural Resources alleging violations of the Missouri Clean Air Act during demolition of the hospital by 110 Smithville, LLC, a company co-owned by Craig.

See: https://www.mycouriertribune.com/demolition-of-former-smithville-hospital-results-in-department-of-natural-resources-investigation/

See: https://www.mynorthlandkc.com/2025/02/missouri-issues-violation-notices-over.html

An inspection conducted on August 27, 2024, resulted in findings that the contractor the developer hired failed to notify regulators of additional asbestos-containing areas, failed to inspect adjacent structures prior to demolition, and failed to remove all regulated asbestos-containing material before demolition began. The report also cited failures related to required demolition practices intended to prevent airborne asbestos migration.

Bunch has stated that she was present at the site on the day of the inspection, along with Craig, and that she believed the violations posed a health risk to nearby residents.

Allegations of Retaliation and Police Involvement

Following the environmental complaint, Bunch has alleged that Craig sought retaliation against her for reporting the violations. She claims Craig  used his influence with the Smithville Police Department, including Police Chief Jason Lockridge, to target her.

The request for a protection order against her was indeed dismissed. Bunch is no stranger to legal troubles. Just as Eric Craig would do,  another, Shanes Crees  filed a detailed Petition for Defamation in court in April 2024 against Kristine Bunch. The petition,  outlines a series of defamatory statements made by Bunch on her Facebook page, "Smithville News," which only allows posts by Bunch herself and restricts comments from others. The petition claims that Bunch made numerous false and malicious statements, including accusations of public corruption, misuse of public funds, and collusion between Crees, KCPI, and the Smithville Mayor, Damien Boley. Bunch's posts have allegedly damaged the reputations of Crees, provoking public contempt and deterring business associations, although this case was dismissed.

Bunch has further alleged that Smithville police officers harassed her in the months following the asbestos complaint. She claims that on June 11, 2025, officers came to her home without a warrant, threatened her, and seized her service dog.

The Smithville Police Department has disputed that account.  The dog was seized following a report that it had attempted to bite a neighbor. Bunch has said that allegation was fabricated and that the incident was part of a retaliatory campaign tied to her reporting of environmental violations.

In addition she claimed that Craig tried to prevent her attendance at a local community festival warning her not to attend in a cease and desist letter. Craigs emails did reference Bunch's attendance at the festival. 

No criminal charges related to the asbestos complaint or alleged retaliation have been filed against Craig, although the contractor his company  hired to tear down the old hospital in Smithville was fined and held to be in violation of Missouri Air pollution rules. 

Emails Clarify Police Role

Emails released through city records add context to claims by Kristine Bunch that police involvement followed her asbestos complaint at the 110 Smithville redevelopment site.

In October 2024, developer Eric Craig is said to have emailed Smithville Police Chief Jason Lockridge, the city administrator, and the mayor addressing public criticism tied to a restraining order against Bunch Craig stated he had not accused the chief of assisting him, while acknowledging that he referenced the police department and City Hall when discussing the matter.

Earlier emails show Craig told business partners he had met with the police chief and requested that Bunch be barred from properties tied to the project. Craig sought written authorization so the city attorney could enforce trespass restrictions if she returned. We share a few of these emails acquired under Missouri's sunshine laws

The emails show advance coordination with city officials regarding enforcement. The restraining order against Bunch was ultimately denied by the court. It is important to note that the emails do not instruct police to retaliate or establish that later police actions were unlawful. Claims of retaliation were not decided by the jury and remain disputed.

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Timeline

Aug. 27, 2024
State documents asbestos violations at Spelman Hospital site.

Oct. 3, 2024
Craig emails partners seeking approval to bar Bunch; references meeting with police chief.

Oct. 12, 2024
Craig emails chief, mayor, and city staff addressing police involvement.

June 11, 2025
Police seize Bunch’s dog after reported incident; Bunch alleges retaliation.

Jan. 2026
Jury returns verdict for Craig.

Civil Lawsuit and Jury Verdict

The dispute eventually moved into civil court, where Craig and affiliated entities  counter-sued Bunch and Smithville News, LLC for defamation, tortious interference with business expectancy, and related claims. Craig argued that Bunch’s public statements — including social media posts and videos — falsely accused him of corruption, unpaid judgments, and misconduct, damaging his reputation and business interests.

According to the court’s final judgment, the jury unanimously found in Craig’s favor. Jurors awarded Craig $160,000 for tortious interference and $300,000 for defamation against Kristine Bunch, along with an additional $160,000 in damages assessed against Smithville News, LLC. The court merged those awards into a single judgment of $620,000, with post-judgment interest accruing at nine percent annually. The judgment follows a multi-day jury trial held in early January 2026. Court records show that the jury was sworn on January 5, heard evidence through January 8, and returned unanimous verdicts on all submitted claims. The court denied Bunch’s claims in their entirety.

According to Bunch, the case arose from a broader public dispute that had already generated local attention, including reporting and commentary regarding alleged unpaid judgments, property ownership, and Craig’s business dealings with the City of Smithville. Those allegations were circulated through social media posts, videos, and content associated with Smithville News, a Facebook-based outlet operated by Bunch. Craig and several affiliated LLCs denied the allegations and counterclaimed, asserting that the statements were false and caused reputational and financial harm. Jurors ultimately credited Craig’s claims, finding that the statements constituted defamation and unlawfully interfered with his business relationships.

After the verdicts were announced, Bunch submitted filings asserting that enforcement of the judgment should be stayed due to a pending bankruptcy case and alleged defects in personal jurisdiction. In a notice filed January 13, 2026, Bunch argued that the automatic stay under federal bankruptcy law barred enforcement and that she had not been properly named or served in her individual capacity for certain claims filing.

Court records also show that Bunch sought permission to proceed as a “poor person,” submitting an affidavit asserting inability to pay court costs. That request was denied, with the court finding that she had sufficient funds or assets to pay the required costs in the action order. The order was entered by Judge Timothy J. Flook of the Clay County Circuit Court.

The case highlights the legal risks associated with publishing allegations of corruption or financial misconduct, particularly where claims are made about private individuals and businesses rather than public officials, and where statements are later found by a jury to be false and damaging.

Public Funding and Political Questions

The development has also drawn criticism over its use of Tax Increment Financing, with residents arguing that TIF funds diverted revenue from local public schools. Community members have questioned whether the project received sufficient vetting before approval and whether public incentives were granted despite unresolved compliance concerns.

Additional scrutiny followed disclosure that Craig, an owner of 110 Smithville, LLC, donated $10,000 to the 2024 campaign of Smithville Mayor Damion Boley. After the election, the city sold three city-owned parcels to 110 Smithville, LLC — a sequence of events that some residents have characterized as raising conflict-of-interest concerns. City officials have not publicly acknowledged wrongdoing, and no findings of illegality have been issued related to the land sale.

Unresolved Questions

While the civil judgment resolves the defamation and interference claims, broader questions surrounding the 110 Smithville project remain unsettled. Critics continue to raise concerns about the use of TIF funding, environmental compliance, and the relationship between developers, city officials, and law enforcement.

Craig  has not addressed Bunch’s retaliation claims after we reached out to him. Bunch continues to maintain that her actions were protected whistleblowing and that the civil verdict punishes her for reporting environmental violations.

As Smithville residents remain divided over the project’s impact, the case illustrates how environmental enforcement, public criticism, police authority, and civil litigation can collide — with juries resolving some disputes, while others remain matters of public trust and unanswered allegation.

We share these communications obtained from the city of Smithville under Missouri's sunshine laws.