Regional Sewer Board responds to IDEM letter, board's insurer will cover legal fees to defend McFadden

On Wednesday, the Marshall County Regional Sewer District (the “District”) met for a brief regular meeting following an executive session.

Apart from public comment, the two topics discussed came from legal counsel.

The first topic concerned correspondence from IDEM Commissioner Clint Woods and a proposed response. Attorney Christopher Nusbaum summarized Commissioner Woods' correspondence as asking the District for its perspective on the Marshall County Commissioners and Marshall County resolutions asking IDEM to dissolve the District.

Attorney Nusbaum presented the District’s proposed response, which was approved at the meeting. Attorney Nusbaum explained that the response outlines: (i) the District’s appreciation of IDEM’s continued review and oversight of its plan in the best interest of the community; (ii) that the District remains committed to transparency in its process carrying out the approved plan in accordance with IC § 13-26; and (iii) accordingly the District will coordinate with IDEM throughout this process and provide IDEM with additional information as appropriate as funding options are solidified and the project advances through its natural phases.

The second topic from legal counsel was an update on the litigation status of the Marshall County Commissioners and Bill Woodward’s case against Trustee McFadden. Attorney Nusbaum explained that a hearing will be held on Friday on whether to dismiss the Commissioners from the amended complaint and reduce the matters before the court to solely the Quo Warranto complaint brought by Mr. Woodward. Additionally, Mr. Nusbaum explained that his office had received an updated coverage opinion from the District’s insurer and that the District’s insurer has agreed to advance reasonable and necessary defense costs for the defense of Mr. McFadden to the allegations in the amended complaint. The District has a $5,000 deductible, and Carson LLP is working with the insurer to confirm its invoicing and bill payment practices. Attorney Nusbaum noted that ultimately the District should have little if any additional cost not covered by the insurer in defending Trustee McFadden, unlike the Commissioners and Mr. Woodward.