Delavan taxpayers will be paying the former owner of Johnny M’s Tavern more than $84,000 to help settle a civil lawsuit.
After meeting in closed-session with their attorney Monday night, City Council approved a resolution on a voice vote to issue a check for $109,000 to John Martin.
Of that amount, the city’s portion will be $84,250 and $24,750 will be paid by insurance coverage with the League of Minnesota Cities.
“Our portion will be paid out of the general fund,” says Haugh. “As far as I know, this ends the case.”
Jason Kuboushek, hired by the League of Minnesota Cities to represent the city, says the $250 insurance deductible covered legal fees that exceeded $50,000.
Kuboushek says final court action will still be needed before the case is officially closed.
“The district court judge does need to issue an order for dismissal,” he says. “This will occur after the settlement check has been delivered to Mr. Martin’s attorney and attorneys for both sides file a stipulation for dismissal.”
An upcoming Dec. 13 hearing and three-day court trial scheduled in March will be canceled, says Kuboushek.
Martin sued the city, former Mayor Kevin Walker, council members Christopher Kruse, Daniel C. Haugh and Max Abdo for breach of contract; violation of due process; not acting in good faith; and passing a resolution in violation of its bylaws.
He accuses council members of wrongfully canceling a lease for a city-owned building used for his bar and revoking his license.
Martin also contends the council illegally held meetings and improperly issued a new liquor license to the new owners of the bar, now called Blu Bair.