Judge rules in favor of LEDC
Published 12:00 am Monday, October 14, 2002
Special Judge Everett Burton has ruled against a local business that recently sued the Lawrence Economic Development Corporation and its executive director, Patricia Clonch.
In a decision filed Monday with the Lawrence County Clerk of Courts Office, Burton ruled against McGinnis, Inc. in its request to have the LEDC's lease with Superior Marine of South Point, declared invalid.
Burton ruled that "the plaintiff's motion for injunctive relief is not well taken and is overruled.
"This Court further finds the motion for summary judgement of defendants LEDC and Pat Clonch is well taken and sustained. This Court finds there is a valid lease between the Lawrence Economic Development Corporation and Superior Marine and plaintiff McGinnis, Inc. has not been injured by the lease. …"
The attorney for the LEDC, Robert Dever, said his clients were happy to put the matter behind them.
"The suit was holding things up," Dever said. "Now they're free to go ahead with their projects. Any time you have a lawsuit, it tends to scare people off. Now they're ready to get back to work."
The attorney for McGinnis, Inc., Glenn Whitaker, said his client is disappointed with the ruling and may file an appeal.
"We do not agree with this ruling. We think it's incorrect," Whitaker said.
In its lawsuit, McGinnis, Inc. claimed the LEDC leased land at The Point industrial park to
Superior Marine without ever considering other parties that had an interest in the property and may have been willing to pay more for it.
McGinnis, Inc. also asked Burton to require the LEDC to follow state laws on proper procedure in the future.
Whitaker argued before Burton that the LEDC broke state law by allowing Clonch and a small executive board that has no elected officials to make key decisions on LEDC contracts and money.
Whitaker said Clonch conducts most of the business for the LEDC and the executive board rubber stamps her decisions.
By state law, a corporation such as the LEDC, which receives money from taxpayers and is responsible for economic development for the county, must have elected representation.
Whitaker told Burton that LEDC acts are shrouded in secrecy and violate state laws. Further, he said, many decisions, such as the Superior Marine lease, are a waste of taxpayers' money since that entity has yet to use the industrial park property to create jobs to spur economic development.
But Dever countered such decisions are supposed to be made in secret to protect the interests of the corporation and the entities that it might do business with.
Dever disagreed with the claim that the board of trustees is kept in the dark and has no say about LEDC matters until after Clonch makes a decision and executes an agreement.
Dever also argued that the suit, seeking injunctive relief, has no merit because McGinnis, Inc. has not suffered financially because of the Superior Marine agreement.