Yadkin County and the town of East Bend are scheduled to go to trial early next year over the ongoing water dispute between the two entities.
The two parties met in a Yadkin County courtroom on Friday for a status review hearing with Judge Michael Duncan presiding.
As part of the proceedings, attorneys for both the town of East Bend and Yadkin County gave opening statements describing the events that lead to the legal dispute.
Andy Fitzgerald, an attorney representing East Bend, began by describing the history of the situation where the wells supplying water for East Bend were no longer usable and the town reached out to the county for assistance. Fitzgerald said the county “answered the call” and for that they were grateful.
This process began in 2012 and lead to an agreement signed in 2013 between the town and county as Yadkin County moved forward with constructing a waterline connecting East Bend to the water system in neighboring Forsyth County. That waterline began operating in 2018.
Fitzgerald said the price terms of the initial contract were “unambiguous.”
The price, however, did need to change, according to attorneys representing Yadkin County, as the county was not able to secure the 40-year USDA loan they initially thought they would have for the cost of constructing the line.
Bradley Wood, an attorney representing Yadkin County, acknowledged that the town was in “an impossible situation” in regards to their water, hence the county stepping in to build the new waterline. He explained that the county had expected a 40-year loan that did not pan out and the county now has debt service of around $208,000 per year on a 20-year loan from the state.
The county has to break even on water, Wood explained. Due to the change in financing the project, Wood said that county leaders had explained to the town the need to increase its water rates, but offered a million dollars towards subsidizing the increase for four years. That subsidy ended in 2024.
In October of 2024, a letter from the county to the town indicated that water would be shut off to the town if they did not pay the outstanding amount owed following the end of the subsidy funding. It was at this point East Bend began legal proceedings, beginning with an injunction, to stop the water shut off. The town since then has continued to pay the rates indicated in the initial contract, while the county insists it should be paid at a higher rate to cover the debt service for building the line.
Yadkin County Attorney Edward Powell said that it was “made clear” to East Bend town leaders that the rates would increase after the four year time frame of the subsidy.
After attorneys for both sides gave their recaps of the situation, Judge Duncan also reviewed some of the facts of the case. Duncan then shared his thoughts with both groups, encouraging them to consider settling the lawsuit without having to go through a jury trial.
Duncan said a jury trial would be a “pressure cooker” for all involved. He also noted the expense of attorneys, and court fees, the time needed for jury selection, the possibilities of a mistrial.
Duncan warned about the “repercussions” of a trial and how it could tear apart people and communities.
East Bend Commissioners Neal Nichols, Kurt Held, Earl Norman, Martin Hauser, and Mayor Larry Adams attended the court proceedings. For Yadkin County, Commissioners David Moxley, Frank Zachary, Cliff Collins, Ricky Oliver were present, as well as County Manager Michael Silverman, clerk to the board Tanya Gentry and Finance Officer Lindsey Cearlock. Both parties were dismissed by the judge to hold closed sessions in separate spaces for discussion.
When they returned to Judge Duncan later, there was no additional open discussion. The trial which had been slated for Oct. 5 was continued to a January 2027 date.