Big week for small city: Nelsonville sues former councilman; voters reject city plan
NELSONVILLE, Ohio (WCMH) — Nelsonville continues on its regularly scheduled path toward abolishing its charter after a city-led ballot issue failed last week, and now the city is involved in a new lawsuit with a familiar face.
Last November, Nelsonville voters approved a citizen-led ballot initiative to abolish its city charter, the first city in Ohio to do so. Nelsonville City Council placed an adjusted amendment on the May ballot to grant the city more authority in facilitating the transition between governments. However, the measure failed on Tuesday, with 54% of residents in opposition.
Voter turnout was low, with the measure failing 235-201. Without the measure, Nelsonville officials said they worried they might not be able to set salaries or establish wards for the new government. However, some residents felt the motion intruded on voters' will, as it would have repealed and replaced the initial citizen initiative.
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Greg Smith, former councilmember and co-organizer behind the issue to abolish the city charter, sued the city over council's May ballot initiative but withdrew the case when he thought the measure would fail. This week, Nelsonville sued Smith for alleged fraud, flipping the script on a man who has sued the city several times.
'Nelsonville and Mr. Smith, you might say, have come a long way from where they began,' the complaint reads. 'Much of that story has already been told. But, now, finally, it's time to bring the story to a final close. To do that, Nelsonville has been left with no other choice than to seek judicial relief for the fraud Mr. Smith has perpetrated – and continues to perpetuate – against Nelsonville.'
Nelsonville is suing Smith and the 25 anonymous others on 10 causes and is demanding monetary relief:
Fraud
Fraudulent inducement
Constructive fraud
Breach of contract
Specific performance
Restitution
Anticipatory breach of contract
Civil conspiracy
Declaratory judgement
Injunctive relief
Nelsonville and Smith settled a previous court case in December 2023, agreeing to pay Smith $137,500 for several written promises. Under the settlement agreement, Smith was not able to sue about the same issue, waived his right to run for council again and agreed not to ask for any backpay.
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According to court documents, Smith emailed the city auditor on April 9, writing he had discovered he was unpaid for his work on council from December 2023 to February 2024. Nelsonville said it had no choice but litigation after Smith's 'demands.' However, Smith denied he violated the settlement, according to court records.
'You use the word demanded,' Smith wrote. 'I have not demanded anything, I asked public officials from my city to explain why a pay correction should not be made or cannot be legally made.'
Now, the city alleges the $600 would qualify as backpay, the latest request in what governing officials have dubbed a long conspiracy of fraud.
Nelsonville alleges Smith and 25 anonymous co-conspirators have plotted to manufacture different situations to sue the government and stir up political unrest to get money from the city. The 25 other alleged participants are only identified as John and Jane Does, but the city said it reserved the right to name them as litigation continues or as more information comes to light.
The complaint also alleges Smith conspired with fellow former council member Rita Nguyen to disrupt the April 14 council meeting. With or without co-conspirators, Nguyen did protest the meeting and was arrested and charged for the disruption. Watch the protest and arrest in the video player above.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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