The Crockett City Council approved an engagement agreement with Eric O'Neil, PLLC to represent the city and its economic-development entity in the Woodrow J. Jones lawsuit (case number cited in the meeting as 25-015-3).

City staff told council members that the city's insurer, TML, denied coverage for this case because the complaint is a breach-of-contract claim, an exclusion in the insurer's coverage. That means the city must retain outside counsel and pay to defend the matter. Staff said the city has 20 days from service to file a response with the court.

City staff also explained that the city's charter contains an indemnification provision allowing the city to pay for defense of members who acted on behalf of the city or the EDC; however, TML's denial means the insurance carrier will not provide defense under this claim. The council discussed remedies such as bonding but staff explained bonding applies to money-handling or fidelity issues, not to this breach-of-contract lawsuit.

Under the motion approved by the council, Eric O'Neil, PLLC will prepare the city’s response and represent both the city and the EDC in the litigation according to the engagement agreement presented. A motion to approve the engagement was moved, seconded and the council approved it by voice vote.

No roll-call vote or fee schedule was read into the record during the meeting; staff indicated a copy of the engagement letter had been circulated to council members and a hard copy was available at the meeting.