(Spencer)– The Iowa Supreme Court has issued a ruling that overturns a previous ruling handed down by a district judge in a case involving Mediacom and Spencer Municipal Utilities.
Mediacom contends SMU did not properly finance the start-up of its municipal communications utility, and is taking the matter to court. SMU contends it did nothing illegal.
Spencer City Attorney Don Hemphill says the Iowa Supreme Court ruling has to do with a “discovery issue” in the pending lawsuit. A district court judge had ruled previously SMU does not have to turn over marketing and financial information Mediacom was requesting. Mediacom contested the ruling to the state supreme court, which Wednesday overturned the district court judge, saying a hearing should have been held prior to the judge rendering a decision.
Hemphill says the Iowa Supreme Court ruling means one of two things could happen now: Mediacom could renew its request for the information from SMU in Clay County District Court. SMU would then either turn over the requested information to Mediacom, or present a better case to the District Court Judge as to why they don’t have to divulge the information.
After that, Hemphill says the District Court will finish up the “discovery phase” of the case, which will include additional depositions from witnesses. A trial would then get underway in Clay County District Court on whether or not SMU properly financed and established their communications utility.
Hemphill is representing the city of Spencer in the case. Local attorneys Steve Avery and Dick Montgomery are representing SMU.
(Story from Danielle Hitchings of sister station KDWD Hot 100 in Spencer.)
