Lawsuit between three Herkimer County municipalities and the county settled

By WKTV News

HERKIMER COUNTY, N.Y. (WKTV) - A lawsuit between three Herkimer County municipalities and the county has been settled after nearly seven years of litigation.

The lawsuit was initiated by the villages of Herkimer and Ilion and the Town of Frankfort, against Herkimer County over the operation of the Workers' Comp self-insurance plan.

Last week, a final judgment was made awarding the county damages and interest totaling $6 million.

When the worker's comp self-insurance plan ended, Herkimer County created what was called "an abandonment plan," which allowed the municipalities to pay a withdrawal fee or pay their share on an annual basis.

Several municipalities sued.

The county then allowed them the option to pay just 75 percent of their withdrawal fee, and all but three did - the villages of Herkimer and Ilion and the Town of Frankfort.

Earlier this year, the county settled the lawsuit, getting approximately $4 million.

The new figure is $6 million, including interest.

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