Litigation » Lawsuit Bankrupt Kentucky Town

Lawsuit Bankrupt Kentucky Town

October 7, 2015

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Hillview, Ky. has plead bankruptcy, and says one multi-million dollar lawsuit is to blame. Hillview became the first city since Detroit to file for chapter 9 protection. The dispute goes back to a 2002 deal that allowed the trucking school to use a 40-acre, city-controlled tract for a heavy equipment training program. School officials put $1.5 million worth of equipment on the site to train 277 students in the first year. Hillview officials proposed to buy the school, but city leaders resisted. Truck America sued in 2005, and city leaders evicted them, prompting litigation. A jury awarded the trucking school $11.4 million in August 2012. Its lawyers are preparing to challenge the city’s request to use bankruptcy. “We don’t think they ever seriously tried to raise taxes or negotiate other debts,” said the trucking school’s attorney.

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