Conway council approves $71,000 settlement, accepts lot where retaining wall failed
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Summary
After extensive legal briefing, the Conway City Council voted to accept a $71,000 settlement in Tom Watson Construction LLC v. Jones and to appropriate $71,000 from the city's transportation funds; the city will receive the deed to the lot with the failed retaining wall.
The Conway City Council voted to accept a $71,000 settlement in the lawsuit Tom Watson Construction LLC v. Jones and to appropriate the same amount to complete the agreement. The initial motion to accept the settlement passed 4–2; a separate appropriation ordinance to fund the settlement passed 5–2.
The council heard a detailed presentation from representatives of the Arkansas Municipal League and city counsel about the dispute, which centers on a retaining wall in the Robin Marr subdivision that partially collapsed. Kathy, litigation counsel for the Arkansas Municipal League, told the council the plaintiff had offered a settlement that would transfer the deed to the city and limit further exposure. "My recommendation to the counsel is to accept it because we will get the property in exchange," she said.
City attorneys described the exposure the city faced if the case went to trial, including potential attorney's fees and the difficulty of predicting a jury outcome. Mr. Finkenbinder, addressing the council on litigation risk, said acquiring the property for fair market value was an uncommon but reasonable way to cut off large potential damages and litigation costs.
Council members debated principles and risk. Some members argued the city should not pay if it had done nothing wrong; others said the likely expense of expert witnesses and prolonged litigation made settlement the pragmatic choice. Council discussion noted two appraisals: the plaintiff’s appraisal at about $70,000 and a city appraisal closer to $60,000, and staff estimated wall repairs could be roughly $20,000.
Council members also clarified that the settlement and appropriation include releases protecting the city and individuals named in the suit from further claims related to this matter. The appropriation ordinance identifies the funding source as the transportation department.
The council discussed timing: trial was set for May 2026 and expert-disclosure deadlines fall in late February, which contributed to the urgency of deciding whether to accept the offer. Supporters of settlement framed it as a risk-mitigation step that gives the city control of the property and avoids further litigation expense; opponents framed it as an undesirable compromise of principle.
With the appropriation approved, the city will receive the deed to the lot, and staff said the city could repair the retaining wall and then decide whether to sell or otherwise manage the property.
Next procedural steps include completing the settlement paperwork and effecting the property transfer; staff will follow up with details to the council once documents are final.
