VIP, Cape County disabilities board considering mediation

The Cape Girardeau County disabilities board and VIP Industries are in discussions that could put an end to legal battles that began in March over how local tax dollars are spent on services for those with developmental impairments.

The two sides are considering mediation, a form of alternative dispute resolution with a neutral third party, said VIP's lawyer, John Toma of St. Louis.

"The parties are discussing whether mediation would be beneficial," Toma said Wednesday. "That's about as far as we've gotten."

VIP Industries filed a lawsuit against the Cape Girardeau County Board for Developmental Disabilities in March, and the board countersued in July.

In its initial suit, VIP was seeking $200,000 from the board, an amount it claimed it was owed for six months of insurance, maintenance and other costs related to operating the sheltered workshop that employs more than 150 developmentally disabled workers.

In its countersuit, the board asked that VIP release its accounting records, relinquish property housing the sheltered workshop and pay rent owed since the end of the two entities' last contract. The board was also asking for more than $1.5 million that VIP was reimbursed for ancillary items and to be awarded the value of any financial gain VIP may have seen from board-funded reimbursements.

The board went into a closed session meeting Wednesday with its lawyer, Michael Ponder. Ponder did not return phone calls seeking comment, and board chairman Larry Tidd declined to discuss the meeting other than to say it involved the lawsuits.

"We're meeting with our attorney, basically to get an update and talk about the status of the lawsuits," Tidd said.

But Tidd did say that he was hopeful that the lawsuits would be short-lived.

"Some of these suits drag out for an awfully long period of time," he said. "I don't know that that is in the best interest of anyone."

The two sides have been embroiled in disagreements for more than a year, beginning with a $60,000 kitchen renovation. That caused the board to want to renegotiate its contract, which VIP refused to do.

The board stopped reimbursing the company for the costs of running the sheltered workshop, which prompted VIP to file a suit that has since seen a change of venue to Stoddard County. The board collects about $870,000 a year from a county tax levy.

A hearing is scheduled for Sept. 12 in Bloomfield, Mo., in front of Judge Stephen R. Mitchell. VIP filed for a preliminary injunction and asked the judge for a declaratory judgment. Toma, VIP's lawyer, said the company is basically asking the judge to hear evidence as to VIP's claims and to issue a ruling.

But Toma said he and Ponder have discussed postponing the hearing for 30 days to explore the possibility of mediation.

"I'm hopeful that the parties can sit down and resolve their differences," Toma said. "I think it would be beneficial to the parties and beneficial to VIP's clients. This is all about working to better serve the clients."

At least one member of the Cape Girardeau County Commission, Paul Koeper, was glad to hear about the possibility of mediation.

"I'd be crazy not to be in favor of mediation, getting this thing settled," Koeper said.

Koeper and Presiding Commissioner Clint Tracy voiced opposition last month to continuing the tax rate that finances the board for 2011. They instead proposed the rate -- 0.077 cents per $100 assessed valuation -- be rolled back to zero.

They said they are in favor of rolling back the rate because the board is spending taxpayer dollars on attorneys working on the lawsuits.

"The money's going to the lawyers and not where it's supposed to go," Koeper said. "So this is good news and I would definitely encourage them to get together and try to work this out. It's time for them to get back to doing what they were formed to do -- helping the disabled citizens of Cape Girardeau County."

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