After reading through a press release from WNC Citizens for Equality, contending an apprent illegal misallocation of public funds by the City of Asheville, City Attorney Brad Branham expressed amazement. 

“We were surprised by the allegations and characterization of this process” in the watchdog group’s release, Branham — speaking on behalf of the city — told the Daily Planet in a telephone interview on Nov. 29.

“Like all class-action suits that are settled, or otherwise resolved, we follow the orders of the court. In this case, we clearly followed the orders of the court to provide the money to these particular charities.”

Continuing, Branham said, “I think this one (concerns raised by WNC Citizens for Equality it its press release) is about as easy to understand as you can possibly get.”

First, he noted, “There’s a lot of information in there (the press release) that I just can’t characterize as correct.

“To start, it is correct to say the city was sued in 2018” on issues related to water. 

“The city decided to settle the lawsuit, given the extremely high cost of litigation. We settled for a very small fraction of the lawsuit. The parties had a total settlement amount. Then we had to go to the court and it had to approve that….

“So we had to lay out a process —us and the plaintiffs — for notifying the claimants... and then present it for approval by the court.

“Oftentimes (in such matters), there is a little bit of money left over. The remaining money has to go somewhere. The court has decide where this money goes.

“There’s a Statute 1-267.10. It’s a short statute” that focuses on “distribution of unpaid residuals in class-action residuals... After the report is received, the court, unless it orders otherwise… shall direct the defendant to pay the remainder into the indigent person’s fund, unless the court orders otherwise.

“First, it is the court’s responsibility, not the defendants’, to dispose of the remaining funds. The city’s only responsibility is to comply with the court-ordered approved settlement of $1.8 million paid by the city,” which, Branham noted, is “a not insignificant” amount in a class-action case.

“So in our case, the court ordered that the money left over be paid to the two charities. We knew. The court is the one who is absolutely” in charge. “The city recommended those two charities. We didn’t get to purely select those. We had to discuss that with the plaintiff’s attorneys — and then the court decided whether they agreed on the two charities.

“The city doesn’t have the power to do anything with the money, other than what the court tells it to do.

“About $900,000 was left over from the settlement,” so it was divided in half, giving $450,000 to each group, Branham noted.

“The two charities — with the settlement divided equally — are the Asheville City Schools Foundation and council’s recommended CoThinkk (local entreneurship, etc.), which the vice mayor (Sheneika Smith) had an initial affiliation with it when it got started, but by the time the money was awarded to the group, she was no longer affiliated.”

After a brief pause, Branham added, “Just because someone had an affiliation with an entity, it doesn’t mean it’s not a good entity... The full City Council agrees with that....

“That suggestion was recommended to the plaintiff’s attorney... At no point, did the vice mayor have unilateral power to make” a decision on where (such as a specific charity) the money was to be paid. 

“Number one, the elected officials are empowered in any city to effectuate the policies that they so choose. In Asheville, you’ve got seven individuals who have their own minds.

“‘Politics’ exists in Asheville, as it exists in every corner of the country. Inherent in politics” is differences on issues. 

What’s more, Branham asserted, “As it pertains to this particular issue, the politics of it played very little role. This is a legal process. The judge is given the authority to make the final orders.” 

Upon questioning from the Daily Planet, Branham identified the judge in the case as Steve Warren.

“If you think the policies should be in a different direction,” then Branham said the process is to vote in candidates one favors to replace those one opposes.

“Another discrepancy that they (WNC Citizens for Equality in its press release) addressed is not correct. It is true that they (CoThinkk) do not have a nonprofit registration. They appointed Eagle Market Street as their fiscal agent,” Branham said in concluding the interview.