INDIANAPOLIS (WLKI)- Governor Mike Braun and former Indiana Utility Regulatory Commission Chairman Andy Zay have reached a settlement resolving Zay's lawsuit over his removal from the commission.
According to FOX59 and CBS4, the state will pay Zay $625,000 under the agreement. The settlement includes $185,000 for lost wages, $140,000 for attorney fees and $300,000 for other costs. The agreement values $485,000 of the total as wages and benefits Zay could have received by remaining on the commission through March 2030.
Zay, a former Republican state senator, filed the lawsuit against Braun and other state officials after he was removed from the IURC. Braun appointed Indianapolis City-County Councilman Joshua Bain to replace him.
Braun's administration alleged Zay misused campaign money to purchase custom scarves and ties for IURC employees. An affidavit filed in the case alleged Zay told commission employees the branded accessories were purchased with campaign funds at a total cost of $3,090.11.
The administration also alleged Zay refused to meet with members of Braun's team to discuss the financial concerns.
Zay disputed the circumstances surrounding his removal. His complaint argued he was not given an opportunity to respond to the allegations and did not learn the administration's stated reason for removing him until it was reported by the media.
The lawsuit also challenged Braun's legal authority to remove an IURC member and sought Zay's reinstatement to the commission.
Neither party conceded its allegations or admitted violating the law as part of the settlement. The case was resolved without prejudice, allowing Zay to bring another lawsuit against Braun in the future.
Braun announced the agreement Saturday and described it as a mutually acceptable resolution. He thanked Zay for his decade of public service and said the settlement would allow those involved to move forward.
Zay said he remained proud of his work on utility affordability and reliability during his time in the Indiana Senate and on the IURC. Although disappointed that he would no longer serve on the commission, Zay said resolving the dispute was in everyone's best interest.