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Atlantic City mayor settles lawsuit filed by the entertainment director at Haven nightclub

A day ahead of trial, Atlantic City Mayor Frank Gilliam settled a lawsuit in a dispute over a $5,000 loan that also led to a brawl outside the Golden Nugget.

Atlantic City Mayor, Frank Gilliam walks to court  to face charges on assault from a fight outside the Golden Nugget in Atlantic City. The hearing took place at the North Wildwood Municipal Court in North Wildwood, N.J. Tuesday, January 29, 2019.
Atlantic City Mayor, Frank Gilliam walks to court to face charges on assault from a fight outside the Golden Nugget in Atlantic City. The hearing took place at the North Wildwood Municipal Court in North Wildwood, N.J. Tuesday, January 29, 2019.Read moreJOSE F. MORENO / Staff Photographer

ATLANTIC CITY — A day ahead of a scheduled civil trial, Atlantic City Mayor Frank Gilliam Jr. and Golden Nugget’s Haven Nightclub entertainment director, Meredith Godfrey, have apparently ironed out their differences.

Godfrey’s attorney, Michael Testa Jr., filed a notice with Superior Court that the lawsuit against the Democratic mayor had been settled. Testa would not disclose details of the settlement.

“There is a confidentiality agreement,” said Testa, who is a Republican candidate for state Senate in the 1st District.

Godfrey, who initially was represented by former Republican Lt. Gov. Kim Guadagno, was seeking repayment of a $5,000 loan to the mayor that she contended was for expenses to trademark an Atlantic City slogan he had been developing. (Gilliam is fond of saying the phrase “Why not A.C.?”)

A dispute over the loan was reportedly behind a brawl that broke out outside the Golden Nugget early last Nov. 11 between Gilliam and City Councilman Jeffree Fauntleroy on one side and employees of Haven Nightclub on the other.

The brawl, caught on surveillance footage, led to assault and harassment complaints being lodged in Municipal Court by three Haven employees against the two public officials. The charges against the mayor were dismissed. Fauntleroy pleaded guilty to blocking traffic.

Godfrey did not respond to a message seeking comment.

Christina Bevilacqua, a spokesperson for Gilliam, said the office would not comment “on anything not having to do with city business.” A call to Gilliam’s cell phone led to a recording that said the person was not accepting calls.

In a response filed to the lawsuit, Gilliam acknowledged knowing Godfrey but denied making any request for a $5,000 loan.

Gilliam has more serious legal problems pending. In December, the FBI and IRS raided his Atlantic City home and carted away computer equipment, cash, and other materials, reportedly in connection with campaign finance issues. No charges have been filed, and the FBI and IRS have made no public comments.