FOR IMMEDIATE RELEASE
Contact: Brian Metzbower
GAHANNA AND RITA RESOLVE TAXPAYER LAWSUIT
Damages to be paid from carry-over reserves accumulated from prudent spending and City will continue to seek reimbursement from insurance carrier
[GAHANNA, OHIO, May 13, 2019] A lawsuit brought by the law firm of Allen, Stovall, Neuman, Fisher & Ashton LLP against the City of Gahanna and the Regional Income Tax Authority (RITA) is now resolved, with city council tonight approving an ordinance to adopt an agreed resolution.
The resolution was reached after months of intense negotiation and it ensures that the city will be able to reduce its legal costs and expenses, while bringing closure for many residents affected by the lawsuit.
The City of Gahanna’s Legal Counsel for the lawsuit Frank Reed said “this matter involving multiple parties has been litigated for years and while RITA and Gahanna may have eventually prevailed in court, the estimated costs of another three to five years of litigation could have potentially resulted in an additional nine million dollars.”
Reed further stated that in his talks with RITA, the city, and counsel for the plaintiffs, it was clear there was momentum for an agreed resolution.
“The city is ready to move forward and this resolution closes that chapter while allowing the city to focus on the future,” Reed said. “This is a responsible decision and I know city leaders look forward to re-focusing on efforts to continue making Gahanna a great place to live, work and raise a family.”
The City of Gahanna’s portion of the damages will be paid from carry-over reserves accumulated from prudent spending from prior years. In addition, the city will continue to seek reimbursement from its insurance company that provides insurance for errors and omissions coverage for the City of Gahanna.