After three years in litigation, a Settlement Agreement has been reached between the cities of Teague and Fairfield.

Both parties signed the agreement earlier this month, which mutually releases both parties from seekings costs or attorneys’s fees.

The Civil Suit was initially filed by the City of Teague in September of 2018.

At issue was what the City of Teague believed to be breaches of an interlocal agreement and facilities agreement between the two cities regarding management of funds from the Texas Department of Criminal Justice.

The original lawsuit alleged that the City of Fairfield had misused and misappropriated special revenue funds, and the City of Teague sought monies they believed were due under the agreements.

A joint statement was issued last week regarding the Settlement:

“The cities of Teague and Fairfield are pleased to announce that after a lengthy mediation with a former Texas Supreme Court Justice, that all claims and counter claims are being dismissed against each other. Teague is being released of liability on the TCEQ water and wastewater permits. The cities look forward to a stronger working relationship with each other.”

The Settlement Agreement & Mutual Release was signed by Fairfield City Secretary Misty L. Richardson and Fairfield Mayor Kenneth Hughes on September 14, 2021.

The document was signed by Teague City Secretary Theresa Bell-Prasil and Teague Mayor Pro Tempore Jerry Ballew on September 22, 2021.

Both parties are obligated to file necessary court documents withint ten business days of the effective Agreement.