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The city is paying Louderback and Caupp for the legal fees they incurred while defending against allegations leveled by their fellow council members in 2015.
The accusations were that Louderback and Caupp violated the city’s charter when they decided to invest in a potential development on the former Kmart property as well as accept employment opportunities with the developer.
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The project never happened, and the Ohio Ethics Commission cleared the pair of any wrongdoing in August 2016.
According to OEC’s decision, Louderback and Caupp did not accept the positions offered by Creative Entertainment Concepts, and through the investigation, no evidence was found that Caupp and Louderback participated as council members on matters the developer may have had before the city during the time the parties discussed potential employment.
According to the settlement, Louderback and Caupp were paid $72,500 to cover legal costs. In return, the city and anyone currently or formerly representing or employed by the city are no longer liable for any claims.
The agreement stipulates that Louderback and Caupp acknowledge that the payment “shall not be construed as an admission of liability and is solely paid to preclude litigation expense.”
The agreement further requires that the parties involved do not talk about the settlement other than to say “the matter has been resolved” or “the matter is over.”
Xenia City Spokesman Lee Warren said there is a non-disclosure agreement on the case and that the city “turned it over to the insurance company to address.”
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The agreement comes following a demand letter sent by Louderback’s and Caupp’s attorney in October 2016, after the Ohio Ethics Commission determined they did nothing wrong.
According to the letter, Brannon demanded the city make a public apology and nullify, withdraw and seal any action taken against his clients.
Brannon listed a series of claims of injuries to his clients, including Caupp losing a re-election bid, Louderback dropping to fourth after being the top vote-getter previously, as well as emotional distress, invasion of privacy in their business lives and legal costs that amounted to more than $80,000.
“They have suffered greatly in their business, political and personal lives as a result of the political witch hunt,” Brannon’s letter reads.
After being cleared in the ethics probe, Louderback said, “The only thing we’re guilty of is trying to invest in our community.”
“Had the city council not went on a witch hunt, city management also, I honestly believe there would be an entertainment center over there,” Louderback said at the time.
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