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Town Board Approves Proposed Settlement Over MI-Connection Lawsuit

by | Nov 15, 2021

Monday night the Davidson Town Board met for a special session. The meeting opened in a public forum, but only to call for a motion to move to closed session. However, it was announced that the Board would return to an open session at the conclusion of the closed session.

Per the meeting announcement, the session was to discuss: “NCGS§143-318.11 (a)(3) Town of Cornelius, et al., vs MI Connection Communication System d/b/a Continuum et al.”

Roughly 30 minutes after going into the closed session, the Mayor and Commissioners returned to the public virtual meeting. Town Manager Jamie Justice provided an overview of the proposed settlement, which calls for the Towns of Mooresville and Davidson to resolve the dispute with Cornelius and Mecklenburg County for the sum of $575,000. The Town of Davidson’s portion of the settlement is $172,500 or 30%.

Commissioner Jim Fuller said he thought this was a “good result” and made the motion to accept the settlement. The Board voted 5-0 to accept the settlement. There was no further action, and the meeting concluded shortly thereafter.

The Town of Cornelius and Mecklenburg County sued Mooresville and Davidson over the claim that they were owed a portion of the proceeds from the sale of the company.

The proposed settlement can be found at this link.

The settlement will have to be approved by all parties – Cornelius, Davidson, Mecklenburg County, Mooresville, and the MI-Connection Board. The signatory page of the settlement reflects that the document is expected to be signed by Mayor Miles Atkins (Mooresville), Mayor Rusty Knox, Mayor Woody Washam (Cornelius), County Manager Dina Diorio (Mecklenburg County), and by a representative of MI-Connection System (doing business as Continuum).

That signatory page also contains the following language: “This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal Control Act.” The finance officer for the Town of Mooresville is expected to sign that note.

An announcement for the “MI Connection Communications System Board of Directors Virtual Special Meeting” on Wednesday, November 17 at 11:00 a.m. was posted on the Town website at the same time that the special Town Board meeting was posted.

If approved by all parties, the settlement will dismiss the lawsuit that was scheduled to be adjudicated in Superior Court in Iredell County.

The video of the open portions of the Town Board meeting (less than eight minutes) can be found at this link.

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