Insurance company denies village coverage in lawsuit

The village is on their own.
That’s the statement from Thomas McKenney, village attorney who attended the council meeting on Monday night and addressed a pending class suit that was filed last summer
‘The insurance company looked at the policy and the allegations and determined the village is not covered,? he said. ‘They have told us to go forward with the lawsuit on our own. We are not seeking a judge to compell the insurance company to reconsider their decision.?
There was no further discussion regarding the case nor specifically why the case was denied by the insurance company.
The village is insured as a member of the Michigan Participation Plan. The company is a group of about 1,300 municipalities statewide that exercise jointly, any power or privilege that they might exercise separately by a municipality.
In addition to the Village of Goodrich, the Genesee County Drain Commissioner, Division of Surface Water Management, Division of Water and Waste Services and Goodrich Country Club are also defendants in the suit.
On July 25 Flint Attorney Dean T. Yeotis filed a class action in the Seventh Circuit Court for a group of Village of Goodrich residents, along with three Genesee County businesses, charging four counts surrounding the village sewage system, drains and mill pond.
The plaintiffs? series of complaints seek monetary damages in excess of $25,000. Judge Richard Yuille will hear the case.
‘The village has insurance for claims from an incorrect decision,? added McKenney. ‘In this case the insurance company did not respond for a long time, then issued a 16-page letter. Ultimately they are not paying’it’s the village that pays it.?
McKenney contacted Yeotis, the attorney for the plaintiff and was granted more time for the case.
‘Right now the village has issued an answer and so had the Goodrich Country Club,? he said. ‘I’m not sure if the Genesee County Drain Commissioner has. The discovery and investigation process is ongoing. It’s too early in the process to determine a cost factor.?
McKenney is paid per hour for his work which is part of the village budget.
Plaintiffs are residents Terese Allen, Atlas Valley Golf and Country Club, Cynthia Beebe, Davison Country Club, Kenny and Gail Hubbard, IMA Recreation Association, Tim and Pril Kleindl, Julia Neville, Brent and Hanni Oskey, John and Caitlin Pavlick, Lawrence and Jessica Pete, Tracey Plummer, Corey Robinson and Edward Welch.
The four counts include sewage disposal system defect claims, unlawful taking of property as a result of damages caused by the sewer system, a negligence claim against the Goodrich Country Club regarding a culvert under Ridge Road used to provide irrigation for the golf course, and unlawful trespass of water claim against the Goodrich Country Club that caused damage. The suit claims the defendants failed to timely correct defective conditions with regard to the sewers, drains and the mill pond. The results of the defects caused damages to the plaintiffs? homes and businesses when untreated sewage and storm water backed up into their dwellings.
Issues with the Goodrich area drains began about three years ago allegedly caused by the Wheelock & Watkins Drain. The agricultural drain, built in about 1897, encompasses a large section of the village, impacting about 100 residents. The old drain under the jurisdiction of Genesee County has been one possible cause of flooding of several residents? homes over the past few years.
The suit also claims the operation of the Goodrich Mill Pond and Dam have substantial defects, including a lack of routine maintenance, inadequate repairs and upgrades, misallocation of funding, inappropriate and untrained operational staff, a significant lack of capacity and negligent design.