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Oronoko settles sewer dispute

South Bend Tribune - 5/15

An out-of-court settlement worth $520,000 has been reached in the lawsuit filed against Oronoko Charter Township by the village of Berrien Springs for the township's breach of a municipal sewer project contract, officials said Wednesday.

The suit was set to go to trial in September.

Township and village officials hammered out the agreement during an all-day facilitation session held Tuesday at Lake Michigan College's Mendel Center in Benton Harbor. The session was mediated by Grand Rapids attorney Jon Muth.

According to a joint statement, "both parties believe the settlement terms are fair and reasonable to all concerned" and are looking forward "to working together now and in the future to improve the quality of life for all village and township residents."

"It's a relief to have it over with," said Oronoko Township Supervisor Ernest Hildebrandt, whose seven-member board voted unanimously to accept the settlement.

"I hope we continue to have a good working relationship with the village."

Under the settlement, Oronoko Township will pay Berrien Springs in three installments out of its general treasury, Hildebrandt said.

The first payment of $180,000 is due in 14 days. It will be followed by two $170,000 installments, one of which will be due within 60 days of the first payment. The other must be paid within 30 days of the second payment.

Oronoko Township Trustee Philipp Riess says that when the two sides began negotiations, they were "quite a ways apart."

"But they came slowly down and we came slowly up," he said. "When everything was said and done everyone was shaking hands."

The suit stems from controversy regarding a waste-water treatment plant project proposed by Berrien Springs in 2001.

Initially, Oronoko Township agreed to shoulder a $2.8 million share of the project but backed out of the deal in December.

In an attempt to force the township to comply with the original contract, the village sued the township in June 2002.

However, Berrien Trial Judge Lynda Tolen declined to enforce the agreement and recommended that Berrien Springs seek monetary damages to compensate for the breach.

The village then sued for about $3 million in damages to offset the financial losses it incurred. Those losses including a $2 million grant that was canceled when the township joined the project and the plant capacity was increased from 450,000 gallons to 750,000.

Berrien Springs village officials were unavailable for comment Wednesday.

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