The public will have to wait to learn more about bankruptcy options and other alternatives for the Social Development Commission to manage its debt.
Members of the SDC board had discussed potentially meeting Wednesday to listen to a presentation by attorneys from Foley & Lardner LLP on the viability of different bankruptcy pathways for the anti-poverty agency. That meeting never materialized.
The law firm was originally scheduled to present during the SDC board meeting on Oct. 15, but that virtual meeting was postponed after only three members were present, which was not enough to make a quorum.
A new meeting date has not been posted publicly yet.
SDC provided services aimed at fighting poverty that included tax assistance, weatherization and job training for years before halting operations amid financial turmoil two years ago.
Here are more updates on where the organization stands now.
TriShulla lawsuit dismissed
A lawsuit filed against SDC by TriShulla LLC, an information technology company, was dismissed on Oct. 15, according to court documents.
TriShulla claimed that SDC owed about $472,000 in outstanding payments for various services it was contracted to provide, including creating a software platform and mobile app.
Though the case had summary judgment hearings scheduled a number of times this year, the court agreed to adjourn the matter while the parties discussed a resolution.
At an August summary judgment hearing, Milwaukee County Circuit Judge Timothy Witkowiak created a deadline of Oct. 2 for the parties to file new documents or indicate that they wanted to move forward, otherwise the case would be dismissed.
At a Sept. 17 board meeting, Jorge Franco, SDC’s interim CEO and board chair, said the organization was in negotiations with TriShulla to get the outstanding liability down to $207,000, and that he was pleasantly surprised at the firm’s willingness to negotiate and talk through things.
NNS reached out to Franco and to William Morgan, an attorney with law firm Murphy Desmond S.C. who represented TriShulla in the case, to ask whether a resolution had been made or whether claims could be filed again, but did not get responses.
New request filed in wage claims lawsuit
Milwaukee County Circuit Court Judge Kevin Martens scheduled a summary judgment hearing at 10 a.m. on Wednesday, Dec. 16 in the Wisconsin Department of Workforce Development’s lawsuit against SDC. That lawsuit claims unpaid wages and benefits are owed to former SDC employees.
Michael Morris, assistant attorney general for the Wisconsin Department of Justice representing the Department of Workforce Development in the lawsuit, filed documents on Oct. 7 requesting the court to grant a summary judgment of $370,658 for the payment of outstanding wages owed to SDC’s employees.
At a status conference Monday, Morris said the parties had reached an impasse in negotiations.
“There’s nothing that’s going to back off SDC from paying those people when it gets resources to do so, including their personal time off,” Franco said at the Sept. 17 board meeting.
Board down to six commissioners
Commissioner Michael Harris resigned from the SDC board on Oct. 15, according to Milwaukee Public Schools, the third board member departure in the past week.
Harris, chief of staff and interim deputy superintendent of operations for MPS, was appointed by the district to serve on SDC’s board last May.
“I remain committed to the mission of serving Milwaukee County residents living in poverty, and I am grateful for the opportunity to have served,” wrote Harris in an Oct. 15 letter to SDC’s board secretary, Peter Fetzer, and others.
In an Oct. 16 letter addressed to Franco, MPS Superintendent Brenda Cassellius said the school district remains committed to the well-being of its students and families, including those living in poverty, through its own programs and partnerships.
“Please be advised that Milwaukee Public Schools does not intend to designate a successor commissioner at this time,” she wrote.
Two other commissioners, Pam Fendt and Richard Diaz, left the board last Tuesday and their appointing agencies have said they have no plans to fill the seats on the board amid management and governance concerns.
The board is now down to six commissioners, a third of its intended size of 18, according to the SDC bylaws and city and county ordinances.
Jonathan Aguilar is a visual journalist at Milwaukee Neighborhood News Service who is supported through a partnership between CatchLight Local and Report for America.
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