The West Liberty Rural Fire District has filed a petition against the city of West Liberty and the West Liberty Fire Department, Inc. in the office of the Muscatine County Clerk of Court, citing the city has “mismanaged the assets and will not account for it’s actions” resulting in a lawsuit.
The action was filed Thursday, July 15, by Rural Fire District volunteer attorney William Tharp of West Liberty following months of discussion – some behind the scenes and some at public meetings – to resolve an issue regarding a 28E Agreement filed July 1, 2007 that had not been updated until this year (according to city officials) involving the West Liberty Volunteer Fire Department and the West Liberty Rural Fire District which encompasses parts or all of the townships of Wapsi, Goshen and Lake in Muscatine County, Iowa and Springdale in Cedar County and Lincoln Township in Johnson County. That includes Atalissa and Nichols Fire Departments.
West Liberty’s fire department is not included in the Rural Fire district but was named in the lawsuit “as a defendant ONLY” according to Tharp because of its affiliation with the partnership. “By law,” Tharp says of the West Liberty fire department, “it is entitled to an accounting of its assets,” noting the city department is “not being alleged to have committed ANY misconduct.”
“The department is also a victim,” Tharp said of the city first responders, noting that is the only reason it is included in the lawsuit.
“Once the Rural Fire District requested an accounting from the city, everything changed in the partnership,” Tharp said. “Instead of providing the accounting, the city chose to take action to terminate the agreement to put pressure on the Rural Fire District by threatening the rural residents with taking away their fire and ambulance service unless they signed a new agreement before seeing an accounting. That is wrong.”
Tharp said the expression, “it is wrong to negotiate at gunpoint,” is applicable here, citing the negotiating process.
“Since the City has mismanaged the assets and will not account for its actions, this lawsuit is necessary,” Tharp said. “This situation must be addressed now.”
The lawsuit accuses the city for its Petition of Partnership Dissolution, accounting, damages, constructive fraud, declaratory judgment and for temporary and permanent injunctions.
The 15-page lawsuit states that the Rural Fire District, the city and the West Liberty Fire Department are a “partnership, where each has contributed fire and rescue equipment, assets and money. The lawsuit charges there presently is no 28E agreement between the parties.
Estimated to have been established in 1975, the city and the West Liberty Fire Department formed a partnership of equipment, assets and money, giving the city a “fiduciary duty to safeguard and maintain” the assets of the department.
On July 1, 2007, the Rural Fire District joined that partnership with a written agreement that was not filed with the Iowa Secretary of State as was required in 2007 and for years following.
The lawsuit contends the city has “violated the provisions of the parties’ contract and breached its fiduciary duties to both the rural and city fire departments. The lawsuit cites six actions including failure to hold semi-annual meetings, failing to prepare monthly statements on expenses and failing to obtain consent when making capital purchases.
The suit contends as well that the city failed to recognize the contract automatically renewed for one year on April 1, 2021.
The suit asks the court to enter a “Declaratory Judgment” ordering the creation of a “new and separate 28E Agency” for administration in providing fire protection and ambulance service for the areas geographically covered by the fire districts involved.
The city was expected to discuss the lawsuit at their Tuesday, July 20 evening meeting. The city is required to respond to the litigation in 20 days after filing.