Cherokee County settles DSS lawsuits for $48.5 million

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Settlement raises millage rate to 61 cents

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The Cherokee County Board of Commissioners on Wednesday unanimously approved a $48.5 million settlement that resolves more than 20 remaining lawsuits against the county stemming from past practices by the Department of Social Services. 

The county's insurer, the North Carolina Liability and Property Pool, will pay $24.25 million while the county will be responsible for the remaining $24.25 million. The North Carolina Liability and Property Pool also agreed to dismiss its lawsuit against Cherokee County as part of the agreement.

Cherokee County will pay $4 million of the settlement by Feb. 15, 2023. The county will then pay about $2.9 million per year for seven years, beginning in July 2024 and ending in 2031. The payments will not accrue any interest. 

Commissioners in recent weeks worked to lower a looming millage rate increase to three cents ahead of the approval of the 2022-23 budget ordinance Wednesday. County Manager Randy Wiggins said the approval of the settlement will result in an additional eight cents added on — or 11 cents total — that sets the new millage rate at 61 cents per $100 of value.

Twenty-six lawsuits were filed against the county in 2018 and 2019, stemming from the Department of Social Services' use of Custody and Visitation Agreements to place children outside of their parents' homes without court approval. 

The first of those cases was tried in the US District Court in May of 2021 and resulted in jury awards and attorney fees of more than $6.5 million. The North Carolina Liability and Property Pool subsequently filed a lawsuit that would absolve their responsibility to cover any other financial awards in the remaining lawsuits. 

Wiggins read a prepared statement Wednesday in which he outlined several reasons for the settlement, including "the distinct possibility that the North Carolina Liability and Property Pool would prevail," leaving the county to pay all remaining lawsuits, legal fees and past judgments. 

The full report of this breaking news story will be included in the July 6 edition of the Cherokee Scout.