The Madison Township board will schedule a special meeting to discuss options for reaching a settlement.
The case involves the estate of Emma Marvin and four other property owners who filed a lawsuit against the township after Madison and Adrian townships agreed to swap property in September.
The suit charges that the townships did not adequately notify property owners before approving the agreement. The agreement involves properties whose owners had petitioned to be annexed into the city of Adrian.
Attorneys for both sides spent several hours in a settlement conference yesterday before Judge Timothy Pickard discussing an offer forwarded by Madison Township officials. The township offered to put the agreement to a vote of the people affected if the city agreed to drop the annexation process.