LAGRANGE CITY COUNCIL AND MAYOR EACH WIN PART OF COURT OF APPEALS DECISION

On December 4, 2008 LaGrange Mayor Elsie Carter brought claims against the LaGrange City Council in Oldham Circuit Court. Mayor Carter alleged that the Council had acted contrary to law by approving Graham Whatley as the City Attorney for LaGrange and subsequently rescinding that approval. She further alleged that the Council violated the law by reducing the property tax rate during the tax year which created a budget deficit.

Regarding the appointment of Graham Whatley as City Attorney, the Council contended that his appointment was conditional and that prior to all of the conditions being met the Council decided to rescind the appointment.

In June 2009 the Oldham Circuit Court found in favor of Mayor Carter on both issues. The City Council appealed that decision. On October 15, 2010 the Court of Appeals for the Commonwealth of Kentucky affirmed the decision of the Oldham Circuit regarding the changing of the tax rate. In the decision, the court found that the reduction of the tax rate was in violation of statutory authority.

On the other hand, regarding the appointment of Graham Whatley as the City Attorney and the subsequent action to rescind the appointment, the Court of Appeals reversed the decision of the Oldham Circuit Court. In essence, the Court of Appeals found that the Council had the authority to rescind the appointment at any time up to the point that all of the conditions of the appointment had been met.
City Councilman Jason Taylor stated “It is now time for Graham Whatley to step aside, as he has never been a valid city attorney. It is unfortunate that Mayor Carter has caused taxpayer money to be spent on this unnecessary and meritless lawsuit. I suggest that Graham Whatley reimburse to the city every dime that he has been paid to him by Mayor Carter, and that such funds be given back to the taxpayers.” He also stated that he thought that the Council should not pay any more money to Graham Whatley for services after the date of the decision, October 15, 2010.

Mayor Elsie Carter stated that she had not discussed the decision with her attorney but that there was a good possibility that she would appeal the decision.