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Olsen settles with City for $49.5K

by Phil Johnson
| November 18, 2014 11:24 AM

After years of squabbling, one mayoral election decided by a handful of votes and the expenditure of tens of thousands of dollars on legal fees, the matter of City Councilman Allen Olsen’s residency is settled. The City of Libby agreed to pay most of Olsen’s defense fees Thursday after both sides met with a mediator. Olsen settled to receive $49,500 of what he said is a $67,000 bill. 

Libby Clerk Glena Hook said the settlement will cost the City of Libby a deductible of $750 to its insurer, Montana Municipal Interlocal Agency (MMIA). The insurer will be responsible for the rest of the settlement amount.

While Olsen is still sore about losing Libby’s race for mayor by 14 votes, he said he felt happy and relieved with the settlement. Considering a clause in the agreement that requires all parties to “speak totally in favor” of the settlement, it was no surprise to hear Roll say he too was happy to have the matter behind him.

“There will be no appeal. This case is completed,” Roll said, adding that MMIA would not have backed the city had it appealed District Judge James Wheelis’ ruling that dismissed the city’s suit against Olsen. The potential for a major bill for the city to foot was too great of a risk for future legal wrangling, Roll said.

“You never win in a courtroom, lawyers win,” Roll said.

The battle about Olsen’s residency brewed for years. A councilman since November 2011, Olsen faced his stiffest challenge when Libby City Attorney James Reintsma filed a lawsuit challenging Olsen’s residency less than two weeks before the Nov. 5, 2013 election. The suit was dropped six days after it was filed, but ultimately revisited before Wheelis. 

Roll questioned Wheelis’ ability to provide an unbiased ruling, citing concern about a conflict between Reintsma and Wheelis. According to Roll, Wheelis was reprimanded for not offering rulings in a timely manner after Reintsma filed a formal complaint. Roll said he and Reintsma discussed the city attorney’s relationship with the district judge before filing the suit. Reintsma told Roll that he was sure the relationship was amicable. 

“If I could go back, I would ask for a different judge,” Roll said.

Looking at what could have been, Olsen said he feels he should be Libby’s mayor.

“Down in my gut, I believe it was true-blue elections fraud,” Olsen said. “I believe Doug Roll should do the honorable thing and step down. He will not.”

Given Bill Gates’ bank account, Olsen said he would have continued with his countersuit. He had a December date in Wheelis’ court.

The settlement was unanimously approved during Monday’s meeting of the City Council. That action gives the City 10 days to pay Olsen in full.