Ocean Springs will pay $107,500 to settle Psycamore lawsuit - WLOX.com - The News for South Mississippi

Ocean Springs will pay $107,500 to settle Psycamore lawsuit

The Ocean Springs Board of Aldermen has agreed to pay $107,500 to Psycamore House for denying the mental health clinic the right to open in Ocean Springs. (Photo source: WLOX) The Ocean Springs Board of Aldermen has agreed to pay $107,500 to Psycamore House for denying the mental health clinic the right to open in Ocean Springs. (Photo source: WLOX)
OCEAN SPRINGS, MS (WLOX) -

We now know how much the City of Ocean Springs will pay Psycamore mental health clinic to settle a four year old lawsuit.

After years of legal wrangling, the Ocean Springs Board of Aldermen has agreed to pay $107,500 to Psycamore House for denying the mental health clinic the right to open in Ocean Springs. That's about a quarter of the amount the clinic owners demanded in the lawsuit.

Here's how the city will fund the settlement. Half of the amount will be covered by the Mississippi Municipal Services, which covers the cities liability insurance.

We're told that liability insurance premiums will not be affected.

The other half will come from the city's reserve fund, which has a balance of approximately $900,000 and will not affect the city's general operating budget.

This all started in 2011, when the board of aldermen denied Psycamore a permit to operate a psychiatric clinic in a historic building on Iberville Drive.

The Mississippi Supreme Court ruled in 2013 that Ocean Springs was wrong to deny a certificate of occupancy, and the Department of Justice said the action by the board was a violation of federal law.

The city settled a previous claim with the owner of Psycamore for more than $400,000.

Legal fees for the city in this case have amounted to approximately $90,000 since 2011.

The final agreement in this latest settlement will be filed in federal court in January. The $105,000 payment from the city will settle all outstanding claims by Psycamore.

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