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Council votes not to oppose proposed settlement after solicitor’s warning on taxpayer exposure
Summary
The borough solicitor recommended the council not object to a settlement agreement; council voted to accept that recommendation, with members citing the risk of greater taxpayer costs if the settlement were rejected and the case were lost in court.
In place of the regular solicitor, the acting solicitor asked council for a motion "to not oppose a settlement agreement" with the borough's insurance carrier and recommended the council accept the proposed settlement to avoid exposing taxpayers to legal costs and potentially a larger judgment. A council member moved the motion, it was seconded and the motion carried after limited discussion.
Council members said they were uncomfortable but recognized the financial risk of rejecting the settlement. "If we decided not to take the settlement, we, the borough, would be on the hook for a lot of money," one council member said, noting legal expenses and the possibility of a judgment exceeding insurance coverage were the reason the borough should avoid objection.
The council did not attach additional conditions to the vote; minutes show the motion carried and the solicitor thanked council members for their attention.
