Piedmont University has settled its lawsuit against the city of Demorest. In exchange for the liberal arts college dismissing the suit, Demorest has agreed to pay Piedmont $70,000 to cover disputed water and sewer fees.
In the lawsuit filed in December 2020, Piedmont claimed, among other things, that Demorest was charging the school unlawful water and sewer rates. School officials also alleged Demorest billed Piedmont improperly and had charged for “phantom meters and non-existent accounts.”
Demorest city attorney Thomas Mitchell explained the settlement payout is to cover “various charges” Piedmont identified in its litigation. The city will pay Piedmont $45,000 from its general fund and its liability insurance will cover the remaining $25,000.
According to the settlement agreement, five days after receiving the payment, Piedmont will file to dismiss the lawsuit with prejudice, meaning it can not refile the same claim again in court. Demorest officials, in turn, agree to release Piedmont University “from all claims, demands, actions, causes of action, suits, damages, losses, attorney fees and expenses of any kind.”
During the Demorest City Council meeting on February 7, the council unanimously voted to accept the terms of the agreement. Afterward, Demorest Mayor Jerry Harkness expressed relief.
“I’m glad to have this lawsuit settled and behind us and moving in a positive direction,” he said.
The new president of Piedmont University, Marshall Criser, attended Tuesday night’s council meeting. After the vote, he approached the mayor and council.
“Gentlemen, I just want to tell you that I’m excited to start referring to ourselves as partners,” Criser said as he shook their hands.
Proxy fight
Two years ago, Atlanta attorney Patrick McKee filed the lawsuit in Habersham County Superior Court leveling accusations of fraud and rackateering against the city, its mayor, city attorney, chief of police, and former city council members.
In addition to damages and attorney’s fees, the lawsuit sought the ouster of then-Mayor Rick Austin from both his elected office and tenured professor’s position at Piedmont University.
Many viewed the lawsuit as a proxy fight between Austin and then-Piedmont president Dr. James Mellichamp. The two did not get along. Tensions mounted when one of Austin’s former colleagues filed a wrongful termination lawsuit against Piedmont. Austin submitted an affidavit on his former colleague’s behalf, accusing Mellichamp of alleged misconduct.
Both men have since moved on from their respective positions. Austin stepped down as mayor when his term ended in 2021. He is now Dean of the School of STEM at Truett McConnell University in Cleveland. Mellichamp was forced into early retirement in January following a faculty vote of no confidence and other public denouncements of his leadership in 2022.
The decision to settle the lawsuit is the reset many in Demorest had been hoping for. The settlement agreement states the university and city chose to “fully and finally” resolve their disputes in the best interest of their respective constituencies, the citizens of Demorest, and the public.
President Criser followed up on that sentiment Wednesday in a statement to Now Habersham: “We appreciate the opportunity to work with the city of Demorest and resolve prior differences. We look forward to reinforcing existing partnerships and building new ones with [the] city of Demorest, Habersham County, and the community surrounding Piedmont University.”
