IAWC suit against Mooresville moved back to county

MOORESVILLE – On Sept. 26, Indiana American Water Company spokesman Joe Loughmiller said IAWC’s case against the Town of Mooresville and town council members has been moved from the United States District Court back to the Morgan County Circuit Court for resolution. The entry on pending motions was filed Sept. 25 in the United States District Court, Southern District of Indiana-Indianapolis Division.

The rulings pertain to a lawsuit filed by Indiana American Water on Oct. 4, 2012, concerning the town council’s actions with regards to due process, access to public records and other matters.

“When we filed our lawsuit last year regarding the Mooresville Town Council’s actions leading up to a hostile government takeover attempt of our water system in this community, we obviously had serious concerns about due process, access to public records and several other issues which we asked the Morgan Circuit Court to address,” said IAWC President Alan DeBoy. “After our case was filed in the Morgan County Circuit Court, the council refused to have the case proceed in state court and insisted that the matters be heard in federal court in Indianapolis instead of the Morgan County state court where the case was filed.

“With the rulings this week, almost a full year after the lawsuit was originally filed in Morgan County, the case is once again back before the Morgan County Circuit Court for resolution, even though Mooresville taxpayers, according to a professional survey conducted late last year, overwhelmingly do not support the council’s actions. “The town council’s attempt to take over a well-run system that is providing quality water service at affordable rates is diverting attention and limited taxpayer resources from more pertinent local issues.”

DeBoy went on to say that the judge’s rulings granted IAWC’s request to remand the case back to a state court on several core issues — and in doing so, noted the the case includes significant legal claims involving substantial questions of state law that should be resolved in a state court. He said the judge also denied the town’s motion for sanctions and attorney’s fees, finding that the town’s request for such relief was improper.

In the court ruling, it was stated that Mooresville is not entitled to fees as “it cannot be characterized as the prevailing party.”

The document stated that the court did not deem IAWC’s suit as “frivolous,” and the court finds that “sanctions are inappropriate.”

Claims against the Mooresville Town Council members in their individual capacities are dismissed with prejudice, as stated in the judgment. IAWC’s remaining state law claims, Counts II and IV, are remanded to the Morgan County Circuit Court. The town council’s motion for protective order, IAWC’s motion to compel discovery and the town council’s motion for a phone status conference are denied as “moot” and may be addressed in state court, if appropriate.

“This entire situation is unfortunate in that it could be quickly and easily resolved if the town council would just listen to its constituents,” DeBoy said in a press statement. “We will continue to put our customers first and to defend our rights to provide the quality water and service they are accustomed to.”

There were no comments on the matter from Mooresville Town Council president George Watkins, nor its attorney in the case at press time.

By Amy Hillenburg | Reporter | Published October, 2nd 2013 in The Reporter Times