Settlement reached in city’s lawsuit regarding alcoholic beverage fee

Through Municipal Order 2019-94, dated Oct. 18, 2019, Fulton City Commissioners Elaine Forrester, Darcy Linn and Jeff Vaughn accepted the negotiated settlement offer to resolve all claims arising from the pending litigation brought by Buck’s Enterprises, Inc., d/b/a Buck’s Party Mart vs. The City of Fulton.

The action taken in special called session by the commission Oct. 18 was in consideration of a total sum to be paid by the City, in the amount of $118,270, in exchange for a full dismissal of all claims and actions.

According to City Manager Mike Gunn, $37,705.60 of the $118,270 was to reimburse Buck’s Enterprises, Inc., Ricky Smith, President, for attorney’s fees associated with the litigation.

In copy of the Settlement Agreement and Release of All Claims obtained by The Current through an Open Records request, it states Buck’s Enterprises, Inc. brought suit against the city before the Fulton Circuit Court, Civil Action No. 15-CI-00052, with a Court of Appeals Docket No. 2018-CA-000757, currently pending before the Kentucky Supreme Court following the filing of a Motion for Discretionary Review by the city.

The document goes on to state the Plaintiff, Buck’s, agrees all claims, past, present or future are disputed and this full and final settlement thereof shall never be treated as evidence of liability nor as an admission of responsibility at any time or in any manner whatsoever; that the defendant, the city, specifically denies that it was intentional, negligent or unconstitutional in its actions with respect to the plaintiff, Buck’s, but rather has agreed to settle this matter in an effort to save costs relating to defending the plaintiff’s claims. Further, the agreement states the settlement is a compromise of disputed claims and the payment made hereunder is not to be construed as an admission of liability.

The suit was the result of the enactment of City Ordinance 2015-04, as passed June 8, 2015, regarding the Regulatory Licensing Fee on the gross receipts of the sale of alcoholic beverages of each license issued by the city of Fulton’s ABC Administrator.

“With the exception of the amount paid by Buck’s Enterprises, Inc., for attorney’s fees, the rest of the amount paid for the settlement was not money lost by Buck’s, but instead, the regulatory fee established by our city ordinance, was passed on by Buck’s to customers who purchased alcohol at the business,” Gunn explained, adding the city was reluctant to agree to the settlement for that reason.