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Murphy – Cherokee County will pay $2 million of a $4 million lawsuit settlement agreed to earlier this month.
The Cherokee County Board of Commissioners approved a $4 million settlement with Molly Cordell on Dec. 6, avoiding a trial that was expected to begin early next year. The agreement stemmed from a lawsuit in which Cordell and her sister, Heaven, were illegally separated from their family by Cherokee County Department of Social Services workers in 2016. It was the latest in a series of lawsuits stemming from DSS’ past use of custody and visitation agreements, which a judge has said are not valid legal documents.
Earlier this year, Cherokee County upgraded to an insurance policy that will cover up to $6 million for “wrongful acts.” However, the expanded coverage applies only to acts that occur on or after July 1, 2021.
While the county tripled its insurance coverage for wrongful acts, its total insurance premium rose to just $281,243 – a relatively modest increase of $30,415 from the previous fiscal year. County Finance Director Candy Anderson said the premium can already vary by $10,000 or more each year due to claims history and other routine factors.
Cherokee County is insured through the N.C. Association of County Commissioners Risk Management Pool, which filed a lawsuit on June 4 asking the court to absolve it of liability to pay monetary awards that may result from past or future verdicts regarding the use of CVAs. If a judge grants the request, county taxpayers could be on the hook for the entire combined $4.6 million award issued by a jury in May, plus the Cordells’ combined settlements of $4,450,000 as well as whatever may happen with any future related lawsuits.