Judge rules for plaintiffs in Seats case; village given 60 days to propose payment options

Attorney McGrath reported to the board that a judge sided with the plaintiffs in the Seats litigation and entered a judgment, but the court stayed enforcement for 60 days to allow the village to propose up to three ways to satisfy the judgment.

Attorney McGrath said, “the judge sided with the plaintiffs,” and noted the stay gives the village time to identify financing options before the judgment is enforced. He told the board the village will return to court on April 23 to present up to three proposals for payment.

Mayor said he appreciated resident turnout for the hearing, adding, “I want to thank of course the residents for the overwhelming participation on that court hearing,” and stressed the importance of public attendance in the courtroom. The Mayor also noted March 1 is the deadline for anything that would appear on next year’s property tax bills and emphasized efforts to avoid raising taxes to cover the judgment.

Officials described three court‑allowed methods for addressing the judgment: issuing a bond, increasing property taxes, or identifying a separate revenue source. McGrath said the village’s immediate focus is finding an additional revenue source that would result in zero or minimal increases to property tax bills. He said plaintiffs’ proposed tax increase would have ranged “anywhere from $655 upwards to $1,000 a year,” which officials aim to avoid.

On a related matter, McGrath reported that on Feb. 24 a federal judge denied the insurer AAIC’s motion to dismiss the village’s bad‑faith counterclaim. “No, uh there was coverage and it should have been settled uh within the policy limits,” McGrath summarized for the board, describing the village’s position in the federal case. He said the denial of the motion to dismiss moves the case into discovery and that a jury trial could follow in roughly 12 to 18 months, though no trial date has been set.

Board members asked for clarification on timing and whether interest would continue to accrue during the stay; McGrath confirmed interest on the Seats judgment continues to accrue and cautioned that potential punitive damages in the federal case could increase exposure. He said some negotiation details cannot be shared while talks continue but pledged to provide updates as the 60‑day deadline approaches.

No formal vote or final settlement was recorded during the legal report segment; the board previously authorized a small settlement offer at a special meeting, but McGrath said plaintiffs rejected the offers and discussions are ongoing.