((UPDATED with explanation and quotes from AMWA attorney Martin Bennett and written statement from AMWA.))
Last week, the Athens Municipal Water Authority (AMWA) board voted to drop the $4 million demand from its lawsuit against the City of Athens. Tuesday evening, AMWA attorneys filed paperwork with the Henderson County District Court to drop its “$4 million dollars in damages for tort claims” against the city.
AMWA board member Ed Gatlin announced the move during a candidate forum at the Cain Center last Thursday, saying, “It was never about the $4 million.”
Pretty straightforward, you would think … but nothing seems to be simple these days between AMWA and the city.
Not long after the filing, city officials issued a response saying they are “disappointed to see that the notice only dismisses some of AMWA’s monetary claims. AMWA’s monetary claims for breach of contract remain …. The filing does not fulfill the intent of the public statements made by AMWA representatives that AMWA intends to drop its $4 million claim against the city for good. AMWA continues to sue the citizens of Athens for $4 million.”
We have to wade into some legal jargon to understand what the city is saying.
In a lawsuit, there can be “alternative theories of recovery.” That means when you sue for montary damages, you can claim you are owed those damages for more than one reason. Same amount of damages, just different reasons you believe you are owed the money.
In the AMWA v. Athens lawsuit, AMWA says it is owed $4 million based on multiple reasons. Breach of contract is one reason; fraud is another.
The document filed by AMWA attorneys Tuesday night (called a partial nonsuit) drops some, but not all, of the water authority’s reasons for seeking $4 million in damages.
Specifically left in place is the breach of contract claim, which says AMWA paid $4 million in bills that the city should have paid. Because the breach of contract claim remains, the city says it is still getting sued for $4 million.
In a written statement from AMWA, water board members said they do “not desire to seek the $4 million in damages as they recognize the City does not have that money.”
The written statement continues: “What AMWA wants is for the City to seriously discuss how they can form a working relationship that is beneficial to the citizens of Athens and to dismiss the suit in its entirety. This is what AMWA has attempted to do since it was discovered the City was improperly billing AMWA for expenses that are the City’s responsibility. From the start of this dispute the City has refused to make serious efforts to this end. Instead, the City gets caught with their hands in the pocket of AMWA, and their only response is to attempt to abolish AMWA.”
I am appalled by the actions of AMWA against the City of Athens. What a way to disrespect Athens citizens and our city representatives! It appears to me that the actions of AMWA in this matter are an attempt to manipulate and deceive the citizens of Athens particularly with the election only days away. It seems that every tiime AMWA is confronted about their actions, their story changes as to what they are and aren’t doing. AMWA has not “dismissed” the $4 million claim against the City of Athens. They have only changed/removed the wording in the lawsuit. I love the City of Athens and have lived here over 40 years. I have never seen such blatant deceitful tactics by an entity that was formed years ago to represent the citizens of Athens and our water resources. I have no doubt that as soon as final election results are determined, AMWA will be refiling the original lawsuit based on the “without prejudice” clause. I pray that the citizens of Athens will see the actions of AMWA as the ploys they are in trying to manipulate the outcome of the upcoming election! Remember…this is your $4 million!