More than 120 current and former Conway police and firefighters will receive money payment before the end of the year after city agreed to settle the class action lawsuit for $1.15 million.
The Conway City Council voted on Monday in a special-called meeting to give Mayor Bart Castleberry the OK to request a preliminary approval in the suit that was filed against the city in 2012, a case Castleberry inherited when he was voted in as mayor in 2016.
The case was scheduled to go to trial on May 6. However, after both sides agreed they believed the settlement was a fair option, it was up to Circuit Judge Troy B. Braswell Jr. to approve the request. In a hearing Tuesday morning in Faulkner County Circuit Court, Braswell signed gave the preliminary approval request the green light, meaning those who joined the class action suit will receive payment before the end of the year.
The lawsuit stems from a Conway City Council-approved quarter-cent (0.25 percent) sales tax that was to be used "exclusively to the salaries of the employees of the City of Conway," according to the ballot resolution that was passed by Conway voters in August 2001.
Employees allege they did not receive money they were promised.
A formal complaint regarding the unpaid monies was filed in 2012, and in December 2015, Circuit Judge Troy B. Braswell gave the green light for the case to move forward as a class-action lawsuit. During the 2015 hearing, Braswell also struck down the plaintiffs' argument that money was illegally spent on the city's behalf for other purposes rather than improving police and firefighters' pay. The certified class includes about 200 police and fire employees that were employed with the city between Dec. 1, 2001, and Dec. 31, 2012.
The settlement directly affects 128 former and current Conway police and firefighters for past wages and unpaid retirement funds, attorney Thomas Thrash told the Log Cabin Democrat.
Thrash represents officer Richard Shumate and firefighter Damon Reed, who filed the suit against the city, as well as all other former and current employees who joined the suit. Many employees opted out of the settlement.
"We are excited about the settlement," Thrash said Tuesday afternoon. "Police officers and firefighters were vindicated in their right to be paid step raises as promised, back in 2010, 2011 and 2012."
After approving the $1.15 million settlement offer, Braswell scheduled a Sept. 5 fairness hearing regarding the plan.
Class members are expected to receive payment in October, Thrash said.
Money in the settlement will come from both the city and the Arkansas Municipal League. The city of Conway will pay $1 million of the settlement, and the remaining $150,000 will be covered by the Arkansas Municipal League.
Conway City Attorney Chuck Clawson told the Log Cabin on Monday that the settlement would be paid "all in one lump sum."
According to a press release issued by city officials following Monday's special-called meeting as well as previous court documents, the monies owed to Conway police and firefighters was not paid due to a recession.
"Though the recession did not allow for the city to provide raises in 2010 through 2012, the city is pleased that it can now resolve this litigation in a way that benefits uniformed employees who protect the citizens of the City of Conway," officials said. "The City of Conway and the Arkansas Municipal League will provide funds, pending court approval, to be distributed to class members and their attorneys."
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