Foundation to help city settle lawsuit

Aug. 26—City of Muskogee officials approached the City of Muskogee Foundation for help with settling a 15-year-old lawsuit.

On Monday, the Foundation board approved a motion to participate in a loan guarantee to the Muskogee Redevelopment Authority in the amount of $6.3 million regarding the settlement agreement in the Deary Vaughn vs. City of Muskogee lawsuit, originally filed in 2007.

CoMF Board Chair Wren Stratton said the grant to the city is no different than any other grant awarded.

"It's not any different than the $13 million that we're spending on streets or buying proper protection for the police," she said. "That money and our mission is helping the taxpayer. This keeps the burden off the taxpayer."

The lawsuit alleges the city demolished private property belonging to Vaughn and his wife Esther and removal of personal property "constituted a condemnatory taking."

Esther died in 2016 and Deary in 2020. The case has been before a trial judge twice and appealed that many times during the past 15 years.

The initial judgment awarded against the city was $1.9 million. Muskogee City Attorney Roy Tucker said that's the amount the city is looking to settle, plus interest.

"That was the amount of the commissioners award," he said. "What the court did was in its last decision on appeal, they did tack on 6% interest from the date of taking, and then, plus we had potential liability for attorneys fees. So following that appeal, we decided to engage with the parties in mediation."

At its Aug. 15 meeting, the Muskogee City Council approved authorization into a settlement agreement in the lawsuit in open session. The council discussed the handling of three other lawsuits in executive session — Darwin England vs. City of Muskogee, Elaine Taff vs. City of Muskogee and James Lacey, et al. vs. City of Muskogee — but no action was taken in open session.

Tucker said the reason for the other three not being acted on was that the Vaughn suit was fully litigated.

"No decision has been made on those as to how we're going forward," he said. "(Vaughn) is the one we're interested in getting settled and getting it out of the way."