((UPDATED with explanation and quotes from AMWA attorney Martin Bennett and written statement from AMWA.))
By Michael V. Hannigan
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.
AMWA attorney Martin Bennett said that isn’t totally true.