A resolution to the pending lawsuit against the Mohave County Fair Association may be reached this year if the county’s governing board accepts a proposed settlement offer next week.
Before 2021, the Fair Association managed fairgrounds operations for nearly 35 years, receiving a $25,000 annual stipend for property maintenance. Following the county board’s decision to reclaim fair management, discrepancies in fair revenues handling by the organization were uncovered.
On Aug. 17, Mohave County filed a lawsuit against the Fair Association, citing breach of contract, conversion, and unjust enrichment. The county board is expected to consider and potentially accept an offered out-of-court settlement from the organization on Monday.
This decision may be made in a closed session at the board’s upcoming meeting in Kingman, permissible under Arizona statute for ongoing legal disputes. Details of the Association’s settlement agreement remain undisclosed by Mohave County Chief Civil Counsel Ryan Esplin, pending approval. If approved, the details will be made public later this month through court filings.
Background:
The Mohave County Fair Association managed Kingman’s fairgrounds since 1987 through an annual lease. Complaints about the organization’s management led to county staff taking over in 2022. Investigation into fair revenues revealed potential discrepancies of up to $71,208 in the Association’s accounts.
County officials had difficulty accessing financial records, only obtaining them six months after terminating the lease. Despite not managing the fairgrounds in 2022, the organization’s bank accounts decreased from $231,630 to $160,421.
County’s Claims:
Mohave County is pursuing damages for breach of contract and conversion. They allege the Association failed to surrender fairground revenues after the lease termination, seeking damages for unjust enrichment. The county also requests the Fair Association cover court costs and attorney’s fees.
Settlement Offer:
Prescott-based attorney Nancy Hargiss-Tatlock, representing the Fair Association, noted ongoing overhead costs in an Aug. 21 email to Esplin. The email expressed the organization’s willingness to settle for $85,000, along with a $20,000 Employee Retention Credit under the 2020 CAREs Act. Tatlock indicated the Fair Association’s intention to dissolve after the legal proceedings’ conclusion.
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