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Wednesday, September 18, 2024 at 8:34 PM

City releases litigation update

EDIE ZUVANICH Special to the Press

HUTTO — The city of Hutto has released a report from the legal department updating all current litigation as of Nov. 16.

The Hutto City Council approved releasing the report with no discussion. Mayor Mike Snyder had only one question about the report, directed to the city attorney.

Snyder asked, “Is there any litigation regarding a lawsuit that involves the mayor or any person sitting up here on the dais regarding sexual harassment or sexual discrimination that this city is involved in or has been involved in?”

City Attorney Dottie Palumbo responded, “No.”

Snyder took to social media to fill in some of the blanks left by the lack of discussion at council.

“No money has been paid out in any case,” the mayor said. “A few of the cases had legal dollars spent on them by the Hutto taxpayer. On the Jones case, no money has been spent by the city of Hutto. All legal bills have been paid by our insurance carrier.”

The list does not include closed cases such as the discrimination complaints brought by former employees Paul Hall and Stacey Schmitt in 2021 and 2022 respectfully. The city attorney said those cases were closed at this point, and Snyder said the only money paid out was through the city’s insurance carrier.

“I do know of EEOC complaints for age discrimination, sexual discrimination, racial discrimination and some sort of retaliatory firing. We have also had 17 separation/termination agreements that were signed with Non Disclosure Agreements, but subsequently the NDAs were terminated (2017-2019). We had four separation agreements that were signed … in late 2019. Those agreements were terminated by the City Council and none of those employees work for Hutto anymore. Finally, we did have a separation agreement with our last CFO that was done late last year,” Snyder reported regarding other closed cases.

Some of the more high profile litigation detailed on the release include: Preston Hollow Capital, LLC v. Cottonwood Development Corp. et al. -- On Jan. 14, 2022, the Fifth Circuit Court of Appeals affirmed the District Court’s judgment against PHC. The Fifth Circuit Court of Appeals’ judgment is final and non-appealable and should bar PHC from recovering any proceeds or judgment from the $15,000,000 loan dispute, according to the City Attorney.

Longhorn Title Co. v Preston Hollow Capital LLC et al. -- pending in the 368th State District Court inWilliamson County, Texas (the “Longhorn Title Lawsuit”), appealed to the Texas Third Court of Appeals for appellate review.

Legacy Hutto v. City of Hutto, Texas -- pending in the Texas Supreme Court from a Seventh Texas Court of Appeals – Amarillo (by assignment) ruling affirming the dismissal of the case by a Judge of the District Court of Williamson County, Texas, 395th Judicial District.

Jones v. City of Hutto et al. -- appeal pending in the U.S. District Court, Western District, Austin Division. On March 2, 2023, the jury reached a verdict against the City and awarded Odis Jones $12,500,000 in damages (including attorney fees). Post-judgment motions were filed by the City’s litigation counsel. Jones conceded that the $4.5M breach of contract award was unlawful (a “double recovery”) and has elected to forego the jury’s award on that claim, leaving the remaining $8.5M discrimination claim still awaiting ruling.

City of Hutto, Texas v. Wolverine Interests, LLC, Cause No. 19-1080C26 -- In the Judicial District of Williamson County; 26th Judicial District. In November 2023, Hutto amended the original petition and is supplementing its Motion for Summary Judgment which is pending before the Trial Court at this time.

The report is available in full detail on the City Council webpage, huttotx.gov/433/citycouncil.


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