Lawsuits put finances in focus in Lake Lure mayoral race

Pritchett seeks reelection as the town defends an insurance-related case

Mayor Carol Pritchett is seeking another term as Lake Lure faces a lawsuit from its municipal insurance pool, adding financial uncertainty to a town still recovering from Hurricane Helene.

Her challengers are write-in candidates John Edmonds Kozma and Kathy Tanner.

Kozma is personally named in two legal matters: A business case in SC and a small claims case in NC, but records show he has not been served in either case.

The town's insurance-related lawsuit names the town, addressed to Pritchett as Mayor, and a claims-management company.

For Pritchett, mayor since 2019, the campaign places her administration’s handling of recovery, infrastructure and public information before voters.

The Interlocal Risk Financing Fund of North Carolina, acting through its administrator, the North Carolina League of Municipalities, sued Lake Lure and Sedgwick Claims Management Services Inc. on Sept. 17 in Wake County Superior Court.

The docket lists claims involving contract, indemnification and money owed. The complaint and 10 supporting exhibits were provisionally filed under seal, leaving the amount sought and the specific allegations unavailable in the available public records.

An exhibit index identifies two emails concerning “looking at the dam.” That reference does not establish whether the dispute involves dam repairs, insurance coverage, claims handling or another issue.

The town has not issued any statement about the pending lawsuit, first reported on Oct. 13, when town council discussed it during closed session following their regular meeting.

The case adds an unresolved financial question to Pritchett’s reelection campaign. At the Oct. 1 candidate forum, she defended the town’s recovery planning and funding efforts. Tanner and Kozma called for greater transparency and public participation, with dam and sewer infrastructure among the central issues.

Pritchett’s public statements about Helene also have drawn scrutiny.

Kozma has accused opponents and their supporters of “twisting the facts” on Facebook.

“Accountability means asking specific questions and following through,” he said in a campaign statement discussing the Lake Lure dam.

Kozma’s campaign has proposed reviewing town assets, including their costs, revenue and liabilities. He has invited registered Lake Lure voters to meet with him on Oct. 22 at the Moose and Goose at the Lake Lure Inn.

Tanner, the other write-in challenger, outlined her plans at the candidate forum. (According to a review of the NC Judicial Branch's available public records, she has no known legal issues.)

The Rutherford County Republican Party has endorsed Kozma in the nonpartisan race. Pritchett and Tanner are registered unaffiliated.

Election Day is Nov. 3. Election information is available through the North Carolina State Board of Elections.