Village receives $1.25M payment for suit

Much like the construction work that prompted the lawsuit, Elm Grove has had to wait much longer than expected to put the finishing touches on its lawsuit with Michels Corp.

Tuesday, Elm Grove received a check from Michels for $1.25 million as part of a settlement in the case, ending a five-year litigation process.

In May, the Circuit Court of Appeals ruled that Elm Grove was entitled to attorney fees after an initial ruling left out specific damages for such costs.

This settlement dwarfs the $300,000 Michels was forced to pay to cover the cost of fixing the work the New Berlin construction company had done improperly in 2007.

In 2008, the initial lawsuit began with a $4 million breach of contract suit filed by the village and a $2.8 million countersuit from Michels that the village successfully settled in 2010.

After failing to get specific damages in connection with the attorney fees, Elm Grove had to raise stormwater rates to cover the costs. Village President Neil Palmer said if the village did get that money back, the village could return rates to previous levels, or at least lower them to more reasonable levels.

On the other hand, the village has the final say in where this new money will go since the utility rate hike has already been budgeted to cover the costs.

No official word has been given about change rates, nor has there been a decision made about where this influx of cash will be spent.