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City attorney says court granted preliminary injunction in SchoolCare dispute; Banfield Road suit dismissed
Summary
City Attorney Susan Morrill told the council the city has filed suit against SchoolCare seeking relief from a $1.57 million assessment; the court granted a preliminary injunction and allowed disputed funds to be escrowed pending related litigation. Separately the Banfield Road environmental claim was dismissed with prejudice with no cost to the city.
The city has moved from administrative dispute to litigation against its risk-pool health insurer, and the council was briefed on both that matter and a separate environmental case.
"We filed last week, requesting a couple of requests for relief, one of which was a preliminary injunction," City Attorney Susan Morrill said, describing the city's filing against SchoolCare over an assessment issued last fall for $1,570,000. Morrill said the court granted the preliminary injunction, directing SchoolCare to continue honoring the city's contract claims even though the assessment has not been paid, and allowed the city to put the contested assessment into an escrow account pending the resolution of parallel litigation in Strafford County.
Morrill also reported that the Banfield Road litigation — a 2023 suit alleging historic dumping of toxic materials — has been resolved by agreement and dismissed with prejudice with no cost to the city. She emphasized there are no terms in that settlement that relate to an upcoming rezoning request for the Banfield Road property.
Councilors asked clarifying questions about whether a planning or zoning board's recommendations would expose the city to liability; Morrill replied that the dismissal of the litigation leaves no ongoing exposure tied to the rezoning review. The briefing concluded with council acknowledgment and no further action required by the body at this time.
