GREENWOOD TWP— The 2016 decision by the Minnesota Association of Townships to drop Greenwood’s liability insurance coverage is still creating problems for the township. The township’s current private liability insurer, Western World, notified the township earlier this month that it would no longer cover costs associated with a retaliation complaint filed by fire department member Jeff Maus several months ago. Maus’s complaint alleges that the township’s decision not to hire him for an open assistant fire chief position was in retaliation for an earlier complaint he had filed with OSHA regarding safety issues in the department.

The fire department had posted the opening internally (to current members) and received two applications. In Maus’s complaint, he noted he was not asserting that he was more qualified than the other applicant, but was questioning the process for the hiring, and whether his past history of questioning fire department policies and safety procedures played a part in the final decision.

MATIT had terminated the township’s liability coverage in 2016, in response to concerns over legal claims relating to township officials and employees who had filed charges against the township, including claims made by Maus and another by the previous town board chair John Bassing relating to release of public records. The township is still insured through MATIT for other township needs.

At a special meeting held on Nov. 26, current board chair Mike Ralston noted they were still waiting for more information on the decision, and exactly what costs the township will need to cover. The deductible on the policy is $10,000.

Ralston noted that as far as he is aware, the investigation into the complaint by the Department of Labor and Industry has been completed, as has the investigation by the township’s insurance company-appointed attorney. He said the final report was expected to be released soon.

The town board did pass a motion to hire attorney Molly Ryan, from the Meagher and Geer PLLP Firm, who had worked on the claim for Western World insurance, to represent the township in any further matters required. They noted that since she was familiar with the case, it would not make sense to have their regular township attorney take over. Ryan will charge the township $235 per hour or $200 per hour if the work is being done by an associate.

Ralston said the township’s regular attorney, Mike Couri, was also looking into the language of the township’s insurance contract with Western World to determine whether or not Western World’s decision to stop covering the claim was legal. The language of the insurance policy does state specific exclusions relating to claims that arise from wrongful employment acts relating to firefighting authorities, but the board noted they had covered the issue so far.

Ralston said the board needed to get this claim cleared, and then reapply for inclusive coverage from MATIT.

“We have proven we can get insurance in the private world,” he said. “That should work in our favor.”