Gaea Powell, the former Arroyo Grande mayoral candidate set to stand jury trial for alleged voter fraud, is suing her employer and one-time landlord for breach of contract.
Her June 2 civil complaint against Pismo Beach functional medical practice Pathways to Health and Dr. David Marquis centers on an intellectual property dispute and allegations of misrepresentation underscored by the criminal case against Powell.
“This case concerns the transfer of valuable intellectual property and business rights after a 15-year professional relationship built largely on trust and handshake agreements,” she told New Times. “This breakdown was not caused by the criminal investigation. However, I believe certain actions Dave took following our dispute may have influenced the charges.”
After the San Luis Obispo County District Attorney’s Office’s filed felony charges against her for election fraud in Arroyo Grande for her actions during the 2022 and 2024 elections, Powell sued the city and City Clerk Jessica Matson for allegedly refusing to disclose public records she requested and not identifying a reported court order for sealing. The case has been dismissed without prejudice.
Powell has an active federal lawsuit worth $1.5 million against SLO County and County Clerk-Recorder Elaina Cano, with the complaint accusing Cano of “misusing her influence” to confirm the existence of the preliminary criminal investigation to the media.
Now, her lawsuit against Marquis claims that he breached a settlement agreement between them that controlled a $41,000 payment from Marquis to Powell. Marquis and Pathways to Health didn’t respond to New Times by press time.
“My position is that the $41,000 represented consideration for a comprehensive settlement, release of claims, transfer of intellectual-property rights, and continuing contractual obligations—not simply compensation for writing or editing a book,” Powell said.
The book, Marquis Method, mentions Powell as editor and thanks her in the acknowledgements. While her litigation argued that the acknowledgement was altered, the complaint also delves into the claim that Marquis continuously misrepresented to Powell that he would permanently move to SLO County to grow his business while actively searching for a home in Southern California.
Powell told New Times that Marquis purchased a James Way condominium in 2022 and rented out a room to her that year.
“I had already been looking for housing within Arroyo Grande so I could qualify to run for mayor,” she said. “Knowing Dave had rented rooms for years while commuting from San Clemente, I asked whether he knew of anything available. Instead, he offered to rent me a room in his condominium.”
The criminal case against Powell centers on the allegation that she registered to vote at an Arroyo Grande address where she didn’t reside as required by law. Instead, she lived in a rural part outside city limits.
Powell said she didn’t pay Marquis rent, and that her working for him satisfied the financial arrangement. That agreement mutually ended in early 2025 “with a handshake.”
“In his recorded interviews with the district attorney’s investigator, Dave acknowledged our long-term rental arrangement, my room at the condominium, my personal belongings, my access to the garage and home, and important aspects of our long-standing business relationship,” she said. “Although he confirmed many of those same facts during a second interview, my allegation is that other descriptions of our relationship evolved over time and became materially different in ways that affected both my civil and criminal matters.”
This article appears in July 30- August 6, 2026.
