City Of Lawrenceburg Approves Deal To Settle ProMaxima Case

Monday, August 31, 2020 at 11:37 AM

The deal was approved last week after years of trying to recoup the funds.

(Lawrenceburg, Ind.) – The City of Lawrenceburg is getting a significant amount of money back after a check was mistakenly sent to the wrong company many years ago.

It was March 2, 2015, when a check for $375,547.97 was sent from the City of Lawrenceburg to a company called ProMaxima. The money was intended for Proximo.

City attorney Del Weldon explained at a special Board of Works Session last week that ProMaxima was in the City’s database because the City had bought some gym equipment from them for the Lawrenceburg Police Department.

“When the check was originated on the computer system, someone accidentally clicked ProMaxima instead of Proximo,” said Weldon.

When the prior administration found out the money was sent to the wrong company, they immediately demanded repayment. ProMaxima declined to repay but agreed to make payments of $2,500.

They would make two payments before the City of Lawrenceburg filed a lawsuit in 2017.

“When it became apparent that the money would not be repaid, we had filed a lawsuit in 2017 but we ended that lawsuit or asked for the judge to make a ruling in our favor in 2019,” said Weldon. “Then we domesticated that in the state of Texas. We have a law firm working for us there. We have an opportunity now to settle this lawsuit for a payment.”

A motion to settle was approved last week and the City is set to receive $470,000 from ProMaxima. The settlement will resolve the matter in it’s entirety.

“It’s taken awhile, but we’ve come out ahead on this,” said Mayor Kelly Mollaun.

The money, which came from the MDF fund, is expected to go right back where it came from.

It seems like a very simple matter but it has not been. I’d just like to thank Del for sticking with this,” said councilman Tony Abbott. “And actually for the first time that I can think of, we got more money than we asked for.”