The ongoing dispute between the Lorain City Schools Board of Education and CEO David Hardy Jr. will not be settled by a state mediator after the Board rejected the request to settle outside of the courtroom.

Following the refusal, Hardy wrote a letter to district employees announcing the mediation meeting between the two sides that would have been overseen by the Ohio Supreme Court’s Government Conflict Resolution Services was cancelled. The meeting was scheduled to determine how the treasury situation would be handled in the aftermath of the restraining order filed by the Board.

The restraining order is part of a lawsuit against Hardy. The issue stems from the ongoing contract dispute between Lorain and South Euclid-Lyndhurst schools. Recently, Lorain Treasurer Josh Hill submitted his resignation, which should have allowed him to accept the same position with South Euclid-Lyndhurst. Hardy accepted Hill's resignation, but the school board did not. The restraining order was filed to bar Hardy from letting Hill officially resign. It also stops Hardy from other lawful CEO duties.

Hardy explained in his letter that the restraining order prevents him from paying the district’s 900 employees, but a day after the letter was sent the board’s attorney said that employees must be paid under state law. Hardy then issued another letter to district staff that stated, "Despite this stalemate in the mediation process, I do not foresee an adverse effect in regards to your scheduled, September 13th pay period.”

It is believed that the board’s refusal to attempt mediation is in response to Hardy issuing his letters.