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City manager outlines recent legal actions, says direct city settlement payouts were limited
Summary
City Manager Grant Gager reviewed nine legal matters that touched the city in recent years. He said most defense costs were covered by the city's insurance pool (MMIA) and that only a $10,000 settlement to the Chamber of Commerce was paid directly by the city. He described several insurance‑covered settlements (Discovery Vista $250,000; Mountain V
City Manager Grant Gager gave a detailed update on legal matters that have involved the city in recent years and on how legal defense and settlement costs were handled.
Gager told the commission that nine items were listed in the city's lawsuit file for his tenure. He said the Atkinson Soils case is pending before the Montana Supreme Court and is being defended by the city's insurer (MMIA) at no additional cost to the city. He summarized outcomes and costs: the city was excused from a wrongful‑death suit brought by an individual named Carolyn Ryan; Montana Supreme Court sided with the city in litigation involving Chad Stone; the Chamber of Commerce litigation ended in a $10,000 settlement paid by the city (largely to support local events and $1,200 to reimburse expenses); Discovery Vista litigation resulted in a $250,000 settlement paid by MMIA; Mountain View litigation resulted in a $150,000 settlement paid by MMIA.
“In sum total of the nine legal actions that have occurred, since I arrived ... the city has paid out $10,000 in settlement money all to the Chamber of Commerce,” Gager said. He added that civil legal hours billed for city representation are usually in the $2,500 to $4,000 per month range and that prosecutorial service under contract is $4,500 per month. He compared that to a fully burdened salary of a staff city attorney (about $148,000 annually) and said the contracted model has been cost‑effective.
Commissioners asked whether insurance payouts had affected MMIA premiums; Gager said MMIA uses a five‑year look back for experience modifiers and that recent payouts might not yet be reflected in the city’s premium. He offered to provide invoices and more detailed billing records to the commission on request.
