Hermann Area Chamber of Commerce has outstanding bills totalling $15,803 owed to a Union attorney for a lawsuit filed in 2007 against two Gasconade County Commissioners by two private citizens on behalf of their fellow county residents.

Prior to court proceedings Tuesday in Franklin County, Tom Loraine, attorney for those commissioners — Jerry Lairmore (Southern District) and Max Aubuchon (Northern District) — subpoenaed billing records from attorney David Baylard for the hearing before Circuit Judge Cynthia Eckelkamp. At issue July 1 was how much Lairmore and Aubuchon would be paying in legal fees to plaintiffs Sandra Lackman and Matthew Penning after Eckelkamp ruled in May in favor of their lawsuit against the commissioners individually. Eckelkamp ruled they should each repay $20,506 plus interest for the two-year period following midterm pay raises in 1999.

During an approximately 50-minute hearing in Union, Lairmore said Loraine successfully argued Baylard’s fees should be considerably lower than the more than $15,803 still owed, according to a May 15, 2008, bill his firm issued to the Hermann Area Chamber of Commerce. That bill, along with 10 more dating back to April 2007, show Baylard billed the Hermann chamber a total of $24,142.59. Of that total, the billing statement show the chamber had already paid Baylard $8,338.75. Bills presented by Baylard to the defendants date back to research services rendered from Jan. 26, 2007 — a month before the lawsuit was filed.

Lairmore said Eckelkamp issued a summary judgement Tuesday releasing the county commission as a governing body from any liability in the matter.

“There’s no liability whatsoever in our official capacity as a county commission,” said Lairmore. “The county didn’t do anything wrong.”

He also noted the county would not be responsible for any legal fees awarded to the plaintiffs. The  commission’s legal fees will be reimbursed by its insurance carrier.

Eckelkamp had previously ruled Lairmore and Aubuchon could not expend county funds for their own personal defense. The county commission was, however, forced to pay legal fees since the lawsuit filed by Lackman and Penning named the commission as a defendant including Presiding Commissioner Ron Jost. Penning, of Hermann is running as a Republican candidate in the August Primary for Northern District Commissioner against Aubuchon.

Baylard had sought a “motion to quash” the subpoena for his billing records to the chamber. But, as Lairmore said, without those records there would be no accurate way for the court to determine what he and Aubuchon actually owed.

Lairmore said an Aug. 1 hearing is scheduled to resolve the issue. He said he and Aubuchon were told the final amount they owe will be considerably less than the $15,803.84 currently owed to Hermann’s chamber. “The most we’ll be accountable for is between $3,200 and $3,600,” said Lairmore. “The (Hermann) chamber will be out $20,000. It’s kind of a bad day for them. Sandra Lackman and Matt Penning got them (the chamber) into something they shouldn’t have been a part of.”

In a letter to the commissioner’s attorney, Baylard wrote, “what I have been paid in this case has come by way of donations which were made through the Hermann Chamber of Commerce (although the Hermann Chamber of Commerce was not my client).”

Minutes from Hermann chamber meetings dating back to early 2006 call for a campaign to seek donations for legal defense of issues related to the county courthouse and issues related to actions taken by the county commission.

A chamber “Courthouse Fund” newsletter issued this spring, obtained by The Republican from a chamber member, refers to Baylard’s services noting: “He simply asks that each month the fund the citizens have established may payment toward the legal fees to show continued support of the effort. Please remember that Mr. Baylard has asked that the Commissioners repay his legal fees if Judge Eckelkamp rules in our favor on the Overpayment of Salary Issue. The fund we have established would then be reimbursed for that portion of the bill.” It continued noting “additional funds are urgently needed to see these suits to legal resolution.”

A goal of $25,000 was set. Chamber minutes from April 10, 2008, show an apparent change of attitude among its membership related to this lawsuit.

“It was felt that we need a disclaimer that states the Hermann Chamber of Commerce is not a participant in any litigation or actions,” the minutes read. “We are simply serving as a holder of funds for this effort of concerned citizens. The word “Escrow” should be inserted before the wording “Courthouse Fund” to help support the disclaimer. It was also felt that we needed to omit anything that pertained to the lawsuit that pertained to the repayment on the overpayment of salary for Aubuchon and Lairmore. That is a personal lawsuit and has nothing to do with the Chamber’s concerns. The escrow Courthouse fund owes Baylard money but there are no funds to date available for payment. It was also felt that we should include the “disclaimer” on the letter used for tax purposes sent to the people who contributed.”