Judge grants preliminary injunction against Fontana Regional Library System

Swain County’s request for a preliminary injunction against the Fontana Regional Library System has been granted.

On May 12, the FRL board voted to distribute “surplus funds” to the three member counties — Swain, Jackson and Macon. Jackson officially left the system July 1. The funds, totaling about $1.3 million, needed to be verified by the executive director, finance officer or an independent auditor. The trustees were working on finalizing that process, along with shoring up some issues their attorney had noted.

The initial request for a temporary restraining order filed by Swain County was granted by Superior Court Judge Tessa Sellers on June 17.

The first claim in the Swain County lawsuit is that certain distribution-related actions anticipated by FRL run counter to the guidelines stipulated in the interlocal agreement that binds the library system and its member counties.

The second claim for relief seeks the imposition of a constructive trust, alleging that because the distribution violates the Interlocal Agreement, accepting or retaining the funding in question would “unjustly enrich” the recipient. 

The third claim maintains Swain County is entitled to “a declaration that the Defendant lacks authority to distribute the funds authorized by its formal Board action on May 12, 2026,” as well as “a declaration of the parties’ obligations and rights under the Interlocal Agreement.” 

On the morning of June 30, Superior Court Judge Steve Warren, of Buncombe County, published his order granting a preliminary injunction against FRL that bars it from taking action to distribute the funds.

Warren wrote that if the “proposed unequal distributions” occur before the court can sort out each party’s rights under the interlocal agreement, those monies could become comingled with other funds, making it difficult to recover should the court ultimately determine the fund distributions shouldn’t have occurred.

“Preserving and maintaining the funds in the FRL accounts pending judicial determination of the parties’ rights is necessary to prevent irreparable harm to Swain County and to maintain the status quo,” the judge wrote. “Further, the Court finds (1) there is probable cause that plaintiff will be able to establish the right it asserts, and (2) there is reasonable apprehension of irreparable loss unless interlocutory injunctive relief is granted.”