Nevada County Picayune   The Gurdon Times

Nevada County Picayune and Gurdon Times Newspaper Archive


Lawsuit From Fire Is Likely

BY RICKY RAGSDALE
Published Wednesday, May 21, 1997 in the Nevada County Picayune

No decision has been made to file a lawsuit against USF&G despite only 55% of the fire claims from April 1, 1996 have been paid.

But the Prescott School Board is probably closer to making that decision after Monday's meeting.

Attorney's Ed McCorkle and Nate Coulter visited with the board, both drawing the same conclusion that USF&G has paid all that it thinks it is required.

McCorkle told board members it had reached another phase, the point where litigation is needed because USF&G is standing firm in its claims the district was underinsured.

School officials say USF&G is taking the position the district did not have enough insurance school-wide when the fire struck last year, and because it did not there is no need to pay all the claims.

The district has alleged it had enough to cover everything and proper representatives should have been sent down by the insurance company to see if enough coverage had been purchased by the district.

While someone representing USF&G, although apparently not an employee, did come to the district on more than one occasion checking the property, officials say the insurance company is still firm in its stand.

Coulter is with the Little Rock based law firm of Wilson, Engstrom, Corum & Coulter and specializes in court action in such cases like Prescott School District would be involved with.

In the past, his firm has represented the city of Prescott in its lawsuit against the builder of the water treatment plant on Highway 19 north. This same firm has also represented a local bank on more than one occasion in a court case.

McCorkle is with McMillan, Turner and McCorkle in Arkadelphia and has been consulting with the school district since last summer.

Coulter told the board after studying the case file it was his opinion the insurance company has offered all they will pay and for the district to get anything else will require a fight.

Both attorneys agreed the district has been patient in dealing with USF&G since the fire 13 months ago.

Because the district has only received $783,000 of the $1.5 million it has filed in 66 claims the district has borrowed nearly $400,000 once and authorized Superintendent Don Johnston to borrow up to another $200,000.

Johnston told board members the district would be short $189,000 in paying what it owes on reconstructing the partially damaged high school.

Arrangements for a 5.9% loan from the Bank of Prescott have been made according to Johnston with a yearly not payment of just over $40,000 for five years.

He said the interest is in line with a company in Conway that makes similar loans.

Bank officials say the district will not be charged interest on any part of the loan until the money is placed in the district account.

If the district only needs a portion of the money in June the needed funds will be placed in its bank account and interest will start accruing at that point.

Patrons of the school district can expect a special meeting by at least Friday, May 30, with a decision on whether to pursue the lawsuit.

Salary increases for all but 15 certified employees were approved during the meeting. This was the final reading of the proposal.

The salary schedule is mandatory by law, act 517 of 1995, passed by the Arkansas Legislation.

Teachers straight from college will earn $20,000 a year unless they have a master's degree and then they will earn $23,000.

The salary rises $400 a year for both sides of the pay scale until the 14th year when the salary for a master's degree jumps $1,800 to $30,000.

The 15 teachers not getting a raise are already making more than the schedule shows for their years of experience and the degree they hold.

That would be over $25,600 for more than 14 years experience without a master's degree or $30,000 with the degree.

After approving the schedule Johnston informed the board the legislature (from its 1997 session) requires the district to now advance the schedule to 15 years.

He suggested a schedule with $400 raises for both degrees with 15 years experience over what the $25,600 or $30,000.

The proposal will voted on at a later meeting as required by law.

Support staff employees got an 8% pay bonus for the 1996-97 school year and an 8% pay raise for next year.

This is the first pay raise for non certified personnel since 1994.

Resignations of Eddie Jackson, Don Crane, Nora Loe, Christie Campbell and Natalie Tanner were accepted by the board. No one was hired during the meeting.


Search | Nevada County Picayune by date   | Gurdon Times by date  

Newspaper articles have been contributed to the Prescott Community Freenet Association as a "current history" of our area. Articles dated December 1981 through May 2001 were contributed by Ragsdale Printing Company, Inc. Articles June 2001 to ? were contributed by Better Built Group, Inc. Articles ? to October 2008 were contributed by GateHouse Media.

Ownership of all Nevada County Picayune content from the beginning of the newspaper, including predecessors, until May 2001 was contributed by the John and Betty Ragsdale family to the Prescott Community Freenet Association. Content on this site may not be archived, retransmitted, saved in a database, or used for any commercial purpose without express written permission. Web hosting by and presentation style copyright ©1999-2009 Danny Stewart