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Published March 28, 2008 10:23 pm - LAMAR, Mo. — Officials of the Barton County Electric Cooperative say they are willing to drop a lawsuit against the co-op’s former CEO if he will pay up the $112,000 he was ordered to hand over in a binding arbitration hearing.
Cooperative officials say they will drop suit if ex-CEO pays up
By Greg Grisolano
ggrisolano@joplinglobe.com
LAMAR, Mo. — Officials of the Barton County Electric Cooperative say they are willing to drop a lawsuit against the co-op’s former CEO if he will pay up the $112,000 he was ordered to hand over in a binding arbitration hearing.
But if he does not, they say they will push the lawsuit, which seeks substantially more money.
Bobbie Jeffries, the co-op’s current chief executive officer, said that’s the message they want former CEO Jim Fanning to hear.
“Barton County agreed in good faith to submit to binding arbitration,” she said. “We expected payment March 6 and haven’t received it. Mr. Fanning is not honoring his agreement.”
Fanning was ordered to repay more than $112,000 to the co-op after a binding arbitration hearing in late January.
The co-op was seeking the return of more than $183,000 after an audit last year stated that nearly $300,000 in member funds were used to pay for improvements to the home of Fanning and his wife, Cheryl.
The co-op’s board of directors initially signed off on a work order for improvements to the home, including a Smart Home technology system, valued at more than $113,000. Several other purchases, including appliances, entertainment equipment, and plumbing and bathroom fixtures, according to records, were invoiced to the co-op by the Fannings.
Board President Douglas Haile said the board held a special meeting on March 6 to decide whether to pursue litigation, and that board members voted unanimously to do so.
“We felt like we had to assure ourselves he’d pay what we’d won,” he said.
When reached for comment Friday, Fanning said he is prepared to repay the co-op in full, on the conditions it will provide his attorney with invoices for the items in question and a release from the suit.
“We’ve got the money to take care of it,” he said. “All we’re asking for is the documents and the release, and we’re ready to go.”
Fanning said he initially offered to make payments to the co-op, but its officials insisted on having the money in lump sum.
“Trying to come up with the money on such short notice, we had to do some things to make it happen,” he said. “I’m not saying it was difficult; we stand ready to pay.”
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