Town attorney reads settlement offer from Funo LLC; commission hears terms, mayor recuses

Town Attorney Ryan Knight read a settlement proposal from counsel for Funo LLC that would resolve three pending cases against the town if the commission directs staff to proceed. The town held a brief, public session to hear the terms after the commission voted to allow the attorney to present the offer in open session.

Knight told commissioners the core terms of the written proposal offered by Funo LLC’s counsel. Under the proposal the town would: (1) agree to a confession of error and judgment in the appellate “shed” case and admit the town breached a prior settlement agreement; (2) pay outstanding attorneys’ fees for the three cases totaling $56,350.47 (the meeting record cites fees calculated from a point of breach forward); (3) issue an apology to Funo LLC; and (4) execute a mutual release and dismiss the pending cases with prejudice. Knight reported opposing counsel would hold the offer open through Dec. 5, 2025.

Before the attorney read the proposed terms, the commission voted (4‑0 with Mayor Allison Dennington abstaining) to allow the attorney to disclose the offer in the open meeting; Dennington announced a conflict and recused herself from the discussion and any subsequent vote because she said she is a principal of the entity identified in the dispute and would file the required form 8. After the terms were read, several commissioners and residents asked procedural and timing questions. The town’s appellate counsel previously filed a motion for reconsideration in the appellate case; Knight said that motion remains pending and that pursuing it could affect the timing and costs of litigation.

No vote was taken on settlement approval during the meeting. Commissioners discussed options including (a) scheduling a closed‑session (shade) meeting for privileged deliberations with counsel, the town manager and a court reporter; (b) scheduling a separate public meeting; or (c) asking staff to seek more information (for example, estimates of likely future fees or a mediation proposal). The commission briefly discussed timing and the risk of additional attorney fees depending on litigation steps. Several commissioners suggested waiting until after the Nov. 2025 election and the seating of any new commissioners before making a final decision; others said hearing the offer was an important transparency step.

Why it matters: The proposed settlement would resolve multiple pending lawsuits and would impose a material fee payment and a formal admission by the town. Commissioners will need to choose whether to continue litigation, seek a mediated resolution, or negotiate a counteroffer, and any final agreement must be returned for a public vote.

Speakers included: Town Attorney Ryan Knight; Mayor Allison Dennington (recused from vote/discussion); Commissioners Don Barlow, Anna Butler, Robert Baldwin and Tim Reed. Public commenters raised concerns about process and town legal costs.