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Smyrna approves $100,000 settlement with Keller North America over 2023 stormwater damage
Summary
The council approved a tentative mediation settlement in which Keller North America will pay $100,000 to resolve a 2023 claim for stormwater pipe damage at Hazelwood and Enon Springs; staff said remediation costs were about $160,000 and Keller disputed liability during negotiations.
The Smyrna Town Council approved settlement terms resolving litigation with Keller North America over stormwater pipe damage that occurred in 2023 near the Hazelwood and Enon Springs area.
Town counsel and staff recounted that grout or concrete entered a storm drainage pipe, creating a sinkhole and damage to town infrastructure. Legal negotiations and mediation led to a tentative settlement in which Keller will pay $100,000. Staff reported that the town’s repairs cost approximately $160,000 and that Keller had raised defenses during the litigation, leading staff and counsel to view the $100,000 mediation outcome as a reasonable compromise to avoid further legal expense and risk.
Council voted to approve the settlement after asking about the repair costs and litigation posture; staff said the town would have faced additional legal fees and uncertainty if the case proceeded to trial.
Next step: the settlement is authorized and staff will manage the transaction and accounting entries to apply received funds toward the repair costs.
