Dennison-Uhrichsville lawsuit over income taxes appears headed for resolution
NEW PHILADELPHIA ‒ The ongoing legal dispute between the Village of Dennison and the City of Uhrichsville over income taxes appears to be headed for a resolution in the near future.
At a status hearing Monday on the case in the Court of Common Pleas Judge Michael Ernest, Uhrichsville's incoming law director said the city's new administration wants the case settled.
More: on lawsuit: Uhrichsville council hires outside legal counsel for dispute with Dennison
"I can tell you that the likely policy of the new administration is going to be that we'd like to sit down with Dennison and mediate this case, with an eye towards resolving it. No question about it," said Jeff Merklin, who was elected as law director in November.
James Zucal, who was elected Uhrichsville mayor in November, has described the legal dispute as "nonsense" and said he wants it ended.
1998 agreement
Dennison filed suit in Tuscarawas County Common Pleas Court against Uhrichsville in 2022, alleging that Uhrichsville had breached an agreement to share income taxes collected from Claymont High School employees.
Until 2020, Uhrichsville had been paying 37% of city income taxes collected from high school employees to Dennison under terms of a 1998 agreement between the two communities. Dennison is asking the court to order Uhrichsville to pay damages in the amount of the sum of the total 37% of the revenues collected from January 2021 to present plus interest.
The case has been on hold since Uhrichsville council voted in September to end its employment of the Columbus law firm of Ice Miller to represent the city. At a special meeting on Nov. 14, council voted to hire Greg Beck of the law firm of Baker, Dublikar, Beck, Wiley & Mathews of North Canton as its new legal representative.
At the same meeting, council voted to rescind a motion approved on Sept. 28 to approve a mediation agreement with Dennison.
"We would like to sit down with Dennison and get back to a situation where we can talk to each other and resolve this matter," Merklin told the judge. "In talking to the new administration, it's the sincere desire to go back to where we were before that Nov. 14 meeting and try to get it resolved with as little cost to the communities as possible."
A new mediation session between the two sides will likely be scheduled for some time in January.
Reach Jon at 330-364-8415 or at jon.baker@timesreporter.com.
This article originally appeared on The Times-Reporter: Uhrichsville-Dennison tax dispute appears headed to mediation
