City of New Orleans, Orleans Parish School Board back in court involving $90M negotiation

NEW ORLEANS (WGNO) — A $90 million legal battle continues in civil court between the Orleans Parish School Board and Mayor LaToya Cantrell’s administration involving a 2019 lawsuit.

Several motions were filed ahead of trial, being handled by Civil District Judge Nicole Sheppard.

“Talk to the city’s PR department,” said City of New Orleans attorney James Garner.

 The City of New Orleans Monday issued the following statement:
 
“All motions argued today during the hearing between the City and OPSB are equally important in relation to tomorrow’s trial. The City has a pending motion for a new trial regarding the order to pay $10M to the School Board. The City reserves any further comment until after rulings by the judge and/or a full trial on the matter.”

School board attorney Bill Aaron says over $100 million was diverted to other city agencies, money that should have gone to the schools.

“The constitution trumps any statutes that they have and that no money should be taken, whether it’s for pensions, whether it’s for collection fees, whether it’s for operation. The assessor, no money should be taken. It all should go to the schools, ” said Aaron.

Aaron plans to call several witnesses, including New Orleans Chief Administrative Officer Gilbert Montano, to testify.

He reiterated that Montano helped negotiate the settlement agreement last year, which states the school board would receive a $90 million payout starting with two $10 million installments.

However, in court, the city said its $10 million was not paid due to events like the terror attack on Bourbon Street and the recent jail escape.

The other $10 million from the city council also hasn’t been paid.

“Summer programs are affected by the lack of money, and other programs are affected. The school board met and basically took money from the reserve to cover. If we had gotten the money, they would have put a big dent in the projected shortfalls, ” said Aaron.

Aaron says he believes the court battle may extend beyond civil district court.

“This case is probably going up to a higher court, Fourth Circuit, and possibly Supreme Court, ” said Aaron.

Both sides are expected back in civil court ahead of the trial on Tuesday.

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