Register of Deeds asks commissioners to pay legal fees she incurred defending against their lawsuit

LACONIA — Belknap County Commissioners say that they have received a request from Belknap County Register of Deeds Barbara Luther that the county pay the legal fees she incurred after the county brought a legal action against her in October of 2011.

Commissioners say they have turned the matter over to the respective attorneys for the two sides to work out. Attorney Paul Fitzgerald represented the city in negotiations which led to a settlement in the dispute earlier this year, while Luther was represented by attorney Philip McLaughlin.

The dispute began in May of last year when the county's auditors issued what is known as a management letter which criticized three specific "material weaknesses" in the record keeping or handling of public funds as alleged in the lawsuit later brought by the commissioners against the registrar as a result of those findings.

The criticisms included the fact that at times a single individual controlled "all phases of a particular (financial) activity" and certain record keeping processes. The management letter did not allege or imply any actual wrongdoing by the registry staff but dealt with improving procedures in keeping with modern accounting standards.

When the parties and registrar could not agree on system changes to address the criticisms, the commissioners brought the lawsuit last October asking the Belknap County Superior Court to "order the (Registry) to conform with the recommendations of the management letter"

Extensive negotiations ensued and an August 27 statement released to the media from the county announced that the agreement between the two parties had been reached. The agreement allows the existing checking account used by the Register of Deeds to be continued and requires that any checks or withdrawals from that account be signed by the Register of Deeds and the Belknap County Treasurer.

It also established procedures for the daily handling of payments and operations at the office.

Commissioners said at the time that the settlement was consistent with recommended best accounting practices and removed a negative comment from the county audit.