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Commissioners reject $1.4M settlement offer in sewer/water litigation and authorize FEMA appeal on Hurricane Ian reimbursement

Seminole County Board of County Commissioners · June 23, 2026
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Summary

Seminole County’s county attorney recommended rejecting a Liberty Mutual statutory offer of $1.4 million in a County Club Heights sewer/water line lawsuit; the board approved staff's recommendation and later authorized staff to pursue a two‑tier administrative appeal after FEMA denied reimbursement for Delion Street hurricane repairs.

The county attorney updated the board on two legal matters June 23. On a construction claim related to the Country Club Heights sewer and water main replacement project, Liberty Mutual — the project surety — filed a statutory settlement offer of $1.4 million. The county attorney and outside counsel recommended rejecting the offer because it fell short of the county’s estimated damages and would not resolve claims against the construction company; the board voted to accept staff’s recommendation and rejected the offer.

Separately, staff reported that FEMA denied in full the county’s reimbursement request for Delion Street hurricane repairs following Hurricane Ian (2022). Office of Management and Budget staff recommended, and the board approved, pursuing the federal two‑tier administrative appeal process to contest FEMA’s denial; the board directed staff to proceed and to return with status updates.

County staff characterized the Liberty Mutual offer as time‑sensitive under the statutory process (which starts an expedited response window) and said rejecting it preserved the county’s other claims. The board voted unanimously on both items.

— The county attorney said Liberty Mutual’s offer was $1.4 million and recommended rejection as insufficient to resolve the county’s damages.

What happens next: county attorneys and outside counsel will continue litigation against the contractor, and staff will file the FEMA administrative appeal and report progress to the board.