LEE COUNTY - A $115,000 settlement will close out pending litigation against the county by CenturyLink dating back to 2016.
At Monday's Lee County Board of Supervisors meeting, the board agreed to pay $115,000 to the communications company as part of an agreement to drop all litigation associated with a cut to CenturyLink's line when the Iowa Fertilizer plant was under construction.
The county will pay $115,000 of the settlement and the county's insurance company would add $25,000 for a total of $140,000, which is half of the proposed settlement of $280,000.
The other half would come from Poepping Stone Bach & Associates and Terry Knoke, an Illinois resident listed in the suit. Lee County Engineer Ben Hull and former Lee County Engineer Ernie Steffensmeier were also named in the suit.
Lee County Attorney Ross Braden said an analysis of the litigation and the future risk makes settling the best option.
"I think it's clear in discussions with Ben, although the county does not feel that it is in the wrong by any means, by doing a cost-benefit analysis and the potential liability the county is exposed to in the event this lawsuit were to proceed through trial - the county could be on the hook for closer to $400,000 or $500,000," Braden said.
"It is a possiblity of a huge judgment against the county, and the advice of our legal counsel is to settle the matter short of trial, if possible."
The U.S. District Court for Southern Iowa ruled against CenturyLink in the lawsuit brought by Allied Manatts Group, L.L.C and DeLong Construction, Inc regarding the construction damage. CenturyLink, settled that claim with the two entities and then filed suit against the county, PSBA, and Knoke for negligence.
Supervisor Rick Larkin asked what had changed to make them offer a settlement.
Hull said there has been a request for a summary judgment made in the case and the trial is set to start in September. With those issues pending, CenturyLink decided to put out a settlement offer.
"This thing could go on and on and I think it's in the best interest of the county that we do settle. And we are taking the word from our counsel. It's never good when we have to pay this amount, but it is what it is."
Hull said he and Steffensmeier were 1,000s of hours into the case.
"Given the 1,000s of hours, I could do $100,000 worth of good for the county. This could go on for another five years," Hull said.
Supervisor Ron Fedler said the county has been kicking the issue down the road for years.
"I agree with our attorney. I don't want to roll the dice here. You never know."
In other action, supervisors:
• approved, 5-0, a contract to accept a donation of just under 10 acres of land from the Circle M Inc., and the Glen Meller family for property to house a new Lee County Health Department.
• approved, 5-0, a motion to re-appoint Liza Alton to the Lee County Conservation Board for a five-year term.
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