The chancellor observed that while Armstrong isn't subservient to the mayor by charter, the county and Jacobs are his clients. And because they've called on him to drop the lawsuit, it's time for him to drop the lawsuit, he wrote.

Knoxville — If Knox County's mayor wants the law director to drop a suit over deputies' pension benefits, then that's what needs to happen, a Knox County chancellor has ruled.

Knox County Chancellor John Weaver issued an opinion Friday in an ongoing dispute between Knox County Mayor Glenn Jacobs and Law Director Bud Armstrong.

Jacobs, who was in Saudi Arabia Friday appearing in a WWE wrestling match as his character Kane, said in a statement he was "very happy" with the decision, saying he thinks Chancellor Weaver made the right ruling.

"I believe the Law Director Armstrong was acting in what he believed was the public's best interest, but there are better ways of resolving this issue without resorting to an expensive and divisive lawsuit," he said. "The Chancellor's ruling defines a path of resolution for this lawsuit and sets a precedent for how Know County proceeds with litigation in the future. I'm glad to have this in place now and am excited to move forward."

Attorney Herbert S. Moncier, who represents Knox County Capt. James Carson and a group of current deputies in the court fight, said his clients were pleased with the opinion.

"They're pleased not only for themselves and the people of Knox County, but it looks as though the mounting attorneys fees are going to be put to a halt," Moncier said.

Moncier said the case is set for a Monday hearing at which it could be formally dismissed.

Armstrong had sued deputies and the county pension board over whether deputies could get credit for unused vacation time in their pension compensation. Jacobs called this fall for Armstrong to drop the lawsuit and said he'd worked out a settlement with the pension board over the question of pension benefits.

More: Commission tells law director to drop suit

On Monday, Weaver held a hearing over the question, promising to follow up with a written ruling.

The chancellor observed Friday that while Armstrong isn't subservient to the mayor by charter, the county and Jacobs are his clients. And because they've called on him to drop the lawsuit, it's time for him to drop the lawsuit.

In Knox County, the law director's position is elected. That's a rarity in the state and a reflection of the county's home rule governance. Typically in Tennessee, county law directors serve as chief legal counsel in an appointed role.

The mayor also is an elected position.

"Here, the client, Knox County, Tennessee, acting through its mayor and commission, have instructed the Knox County law director to discontinue this action," Weaver wrote. "Accordingly, ... this court determines and declares that the Knox County law director no longer has the authority to continue with the prosecution of this case."

Jacobs said he objected to the county essentially suing itself. He said the action had cost more than $600,000 in legal bills already.

The mayor also questioned just what authority Armstrong had to independently bring a lawsuit.

At Jacobs' urging, Knox County Commission agreed 7-1 in a non-binding resolution last month to call on Armstrong to drop the lawsuit.

Armstrong said he was merely seeking clarification of a legal question over whether the time off could be credited as part of a deputy's pension benefits.

Armstrong hired outside counsel to represent him. About a half-dozen retired deputies were sued, and current deputies joined in the action to get clarification on what they were due.