No need for a trial, Rural Hall says. Town asks court to simply rule that Megan Garner settlement was invalid.

The Town of Rural Hall has filed a motion asking a judge to rule that the nearly $150,000 settlement agreement that the town’s former manager negotiated is invalid without any need for a trial on the matter.

Randy James, the interim town attorney, filed the motion Aug. 24 in Forsyth Superior Court. The town has previously filed a lawsuit against former Town Manager Megan Garner, who is now the city manager for Graham in Alamance County.

In what is called a motion for summary judgment, James argues that a Forsyth County judge should rule in Rural Hall’s favor because the town maintains there is no substantial dispute about the facts and says it is entitled to a ruling in its favor as a matter of law.

“In this case it is undisputed that the Settlement Agreement did not contain the preaudit certification because a budget amendment funding the Settlement Agreement was never presented or approved by the Town Council,” James said.

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June Allison, one of Garner’s attorneys, said Tuesday, “We are aware it’s been filed and we will respond in due course.”

This is the latest in a legal dispute that has been brewing since late last year, when the town filed a lawsuit against Garner. The legal drama began after an Oct. 21, 2021 meeting when Garner, Town Attorney D. Barrett Burge and three council members — John McDermon, Ricky Plunkett and Jesse Stigall — all abruptly resigned. The resignations took place after the three council members approved a nearly $150,000 settlement agreement, or severance package, for Garner, who accepted a job as Graham’s city manager the next day.

James argues in the complaint that the agreement should be considered invalid because it violates the terms of Garner’s employment contract and runs counter to the requirements of state law.

Garner, the lawsuit said, never got the money because the town’s transaction limits would not allow the transfer of the money into Garner’s accounts.

In an amended lawsuit filed in December, James alleged that Garner violated the town’s ethical rules by having an affair with the town’s former fire chief, Andy Marshall. Andy Marshall’s ex-wife, Stacy Marshall, filed an alienation of affection lawsuit in Forsyth Superior Court against Garner, accusing Garner of ruining her marriage by having an affair with Andy Marshall.

Garner has denied all allegations, including that she had any sexual relationship with Andy Marshall, and filed a counter complaint, saying that she negotiated the settlement agreement to escape rampant personal and sexist attacks on her character in violation of her civil rights. The amount of the settlement agreement was not made public until she filed her written answer to the lawsuit. No official disclosed the amount of the settlement agreement until February, when Garner filed her written answer to the lawsuit. That’s despite state law saying that a settlement agreement approved on behalf of a public official cannot be made confidential.

Garner has alleged in court papers that the town breached a duty of good faith and fair dealing when town officials refused to pass a budget amendment and place a stamp on the agreement certifying that it was pre-audited.

And even though the town alleges that it had grounds to fire Garner, she disputes that in court papers, saying that she brought Rural Hall into compliance with the federal Family Medical Leave Act, balanced the town’s checkbook, reduced the town’s reliance on overtime, revised the town’s personnel policy and used a consulting agency to determine appropriate levels of pay for certain positions in the town.

No hearing has been set for the motion for summary judgement. There is other litigation that is still pending, including a lawsuit filed by Garner against Council Member Susan Gordon, alleging that Gordon spread false and defamatory information about Garner.

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