HomeMy WebLinkAbout11.a LB MEMORANDUM Leopard-Wilson MEMORANDUM
To: Board of Supervisors, Clay County Utility Authority(CCUA)
From: Grady Williams, General Counsel, CCUA
Re: Leopard and Wilson IRMA Related Backflow Claims
Date: July 10, 2025
Recommended Action: CCUA Board approval of proposed mediated settlement result and
authorization of Executive Director and legal counsel to finalize and pay$85,000 per
claimant, $170,000 total, from CCUA's self-insurance backflow fund, to satisfy and
conclude this litigation.
Background: CCUA residential customers Leopard and Wilson both filed suit in Circuit
Court in Clay County, FL, based on the effects of Hurricane Irma on their residences, which
were located at a very low-lying area on Knight Boxx Road.The claimants experienced
sewage backflows inside of their respective residences, resulting in temporary
displacement from their homes, contamination and damage to their household contents
and furnishings, and contamination and damage to the interiors and finish out of their
residential structures. Efforts to settle those two claims by CCUA's adjuster with Leopard
and Wilson immediately following the backflow events were unsuccessful. Ken Amaro of
First Coast News provided news coverage under a story which headlined "Clay County
homeowners flooded with raw sewage would like county's utility to help restore them",
quoting both Leopard and CCUA's then COO, Jeremy Johnston. Link:
https://www.firstcoastnews.com/article/news/investigations/on-your-side-after-irma/clay-
county-homeowners-flooded-with-raw-sewage-would-like-countys-utility-to-help-restore-
them/77-477661649
Alternative Resolution by Jury Trial: The claims are currently scheduled for jury trial the
week of August 25, 2025. It is expected to be a full week of jury selection and courtroom
trial time, possibly with additional news coverage. Executive Director Jeremy Johnston is
CCUA's corporate representative for trial week. At least one expert witness is expected to
testify at CCUA's expense, and CCUA is responsible for the cost of its own legal defense,
with Mark Hulsey IV of Ludwig Hulsey, P.A. serving as trial counsel.
Mediation and Re-Mediation: The initial effort at mediation of these claims in July 2021
reached an impasse, with the claimants last demanding$125,000 each. Last week's
mediation resulted in a tentative mediated settlement, now before the CCUA Board for
approval at$85,000 per claim. Settlement would result in a full release of liability and
dismissal of the lawsuit. CCUA management, staff, and legal counsel have worked
diligently to mitigate CCUA's legal liability on these self-insured claims for the past
approximate eight (8)years. To limit further risk exposure and public stigma against CCUA,
it is strongly recommended that the CCUA Board approve the proposed mediated
settlement to conclude this matter.