City of Guthrie and Rural Water end 11-year lawsuit

After more than a decade of going back-and-forth, the City of Guthrie and Rural Water District No. 1 have announced a settlement agreement.

In 2005, Rural Water filed a lawsuit against the City due to City’s expansion into the water district’s territory, which was established in 1972.

Rural Water agreed to the settlement on Thursday evening at their board meeting. The City agreed to the terms in their council meeting on Tuesday. Related article: City agrees to conceptual settlement agreement with Rural Water District

Full details were not available at the time of this article, but will soon be provided.

“Rural Water, Sewer and Solid Waste Management District No. 1 (Logan-1) and the City of Guthrie (City) are pleased to announce a settlement agreement and a water purchase contract has been agreed to by all parties,” a statement said from the City.

“Each of the parties has been working diligently on a successful resolution of the issues between the entities and are grateful a course of action has been created for the mutual benefit of each other. Officials from Logan-1 and the City would like to thank all their staff, associates and customers who have made this agreement and contract possible.”

A federal jury found judgment in favor of the water district over the City and was awarded $1.28 million in damages. The water district was seeking $3 million in damages. The City appealed the decision. Related article: Rural water district awarded $1.28 million from Guthrie; appeal upcoming?

In 2012, the City prevailed in the state case brought forth by the water district in which the water district sought to compel the City of Guthrie to sell them water. At that time, a judge awarded the city’s insurance company a little more than $286,000 in legal fees that was spent defending the city in the state case versus the water district. In 2014, the court awarded Guthrie approximately $600,000 in legal fees.

Guthrie Mayor Steve Gentling is looking toward the future.

“We are glad to have the dispute chapter behind us and are looking forward to a great and wonderful relationship with Logan County Rural Water District No.1 for many years to come,” Gentling said.  

City Manager Bruce Johnson says this will be an impact on future growth.

“The City believes the agreement and contract can be foundational building blocks for growth and development for both the City and Logan-1’s territory,” Johnson said.