Board approves settlement to end MTN transportation lawsuits; no money exchanged

The Stillwater Area Public Schools board voted unanimously to approve a settlement that ends a multi-year legal dispute with MTN, the district's former transportation contractor.

Superintendent Dr. Funk told the board the district and MTN had been litigating since 2021 after a contract dispute that prevented MTN from fulfilling agreed services. The district initially sued MTN in September 2021; MTN later sued the district. Funk said the litigation has been costly because the dispute is not covered by the district's insurance when the district initiates suit.

Funk described multiple prior mediation attempts and said that a recent mediation session in Minneapolis — with a retired judge who has been involved since the case began — resulted in both sides agreeing to withdraw their lawsuits with no money exchanging hands. He told the board MTN had at times demanded up to $15 million. Funk and the district attorney team recommended settling to avoid the risk of a trial verdict that could have required substantial district payment.

Board members thanked staff and legal counsel for resolving the issue. The board conducted a roll-call vote; members recorded their votes by name and the motion to approve the settlement passed unanimously.

District staff told the board that, while the settlement avoids additional legal fees and trial risks, the district had already expended substantial legal resources during the earlier years of litigation. Superintendent Funk described the settlement as an opportunity to close a long-running source of financial and operational uncertainty for the district.