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RLCD HAS NOT FILED SUIT AGAINST LAW FIRM

BY JIM MUIR
THE SOUTHERN

Wednesday, January 12, 2005 7:10 AM CST

BENTON -- A promised lawsuit against a St. Louis law firm that allegedly handed out faulty legal advice to the Rend Lake Conservancy District has never come to fruition, according to board president Pete Micheletto.

It's been more than six months since former RLCD attorney Terry Black announced the district had retained the services of Weilmuenster & Wiggington, a Belleville-based law firm, to investigate what he termed "a potential legal malpractice claim" against an unnamed St. Louis law firm that provided advice to the district when it fired former general manager Kevin Davis.

Black indicated last July that legal action would be taken against the firm. However, Micheletto said, no lawsuit has been filed and none is currently in the offing. He said the district recently received a letter from Belleville attorney Steve Wiggington saying he was withdrawing from the case, leaving board members back at square one and now facing a race against the statute of limitations.

"He didn't give us any particular reason. He just said he was bowing out," Micheletto said. "His reason was very vague and he just basically said he was throwing it back in our laps. He said he was not going to charge us anything for the work that he did. We're still basically trying to figure out what happened."

Micheletto said he is uncertain at this time what action, if any, the board will take concerning the matter.

Black, who served as the RLCD attorney for more than 25 years, was replaced last month after the auditor general recommended the district hire an in-house legal counsel.

Newly hired RLCD attorney Larry Sanders confirmed Wiggington has withdrawn from the case. Sanders was hired in December when a new management team was brought on board at the district, but has been on the job only since Jan. 3.

"I can tell you that no action has been taken to either do anything or not do anything," Sanders said. "There may be something happen with that in the future but as of today nothing has taken place."

According to state law, the statute of limitations on filing suit against the law firm is two years. Davis was fired April 28, 2003, which leaves the district only three months before the statute of limitations expires.

Citing a desire to avoid lengthy litigation, the RLCD board voted in June 2003 to approve a $250,000 settlement to Davis, who was fired by the board two months earlier when a forensic audit alleged he misappropriated more than $500,000 and mismanaged other district funds.

After he was terminated Davis hired Carbondale attorney Shari Rhode and promptly threatened legal action against the conservancy district, claiming he was wrongfully discharged. A short time later the board voted to approve the settlement rather than fight the matter in court, even though no lawsuit was ever filed against the district.

At the time Davis was fired, Black and the board refused to answer any questions about the termination; they have remained mum for the past 21 months. On the day Davis was fired, Black issued a statement, the only comment made by RLCD management about Davis' termination. The April 28, 2003, statement read:

"The board has attempted throughout to handle this matter on a professional basis. Outside legal counsel and other professionals were engaged for advice during the entire process. The advice of these professionals was relied upon in making the decisions in question. As is always the case, there are always risks and costs associated with litigation. Based upon the risks and the costs believed to be facing the district in connection with these matters, a decision was made to put the matter to rest and to concentrate on the future of RLCD, rather than its past. Although this matter has been the subject of considerable attention in Southern Illinois during the past months, the board believes it is in the best interest of the district, its customers and taxpayers to proceed to the future."

However, according to a news release issued by Black on July 6, 2004 -- the same day Glenn Poshard was appointed interim general manager -- the board was involved in an investigation to try and determine whether the St. Louis law firm may have ignored or failed to recognize certain requirements necessary to properly terminate a person employed by a public entity. Black said the law firm advertised itself as offering expertise in employment law.

Black said during the same July meeting a lawsuit would be filed "soon" in an attempt to recoup the money paid to Davis. Black said a figure had not been decided but said any amount the district would seek on top of the $250,000 would include legal fees and an unspecified monetary amount for the "adverse publicity" generated by the hefty payout to Davis.

Sanders said he expects to report back to the board about the matter in the coming weeks. When contacted at his Belleville office on Tuesday Wiggington refused to answer any questions about his role with the RLCD.

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