The Clay County Commission has failed to remove Clay-Roane PSD board member Melissa Postelwait from her position.
The clay prosecutor has dropped the official action regarding her removal.
The removal effort followed accusations against Postelwait regarding her misuse of PSD funds and slapping fellow PSD board member Susan Beard.
The court action was filed on behalf of the commission by Prosecutor Jim Samples. Postelwait has challenged the commission that they cannot remove her from the PSD position.
Reports still indicate Postelwait has not paid back funds which she reportedly advanced herself.
Postalwait, 28, has been found guilty of battery for the incident with Beard, who represents Roane County.
Following a trial before Clay Magistrate Jeff Boggs, she was fined $200 plus $153.50 in court costs and sentenced to 30 days in jail.
Her jail sentence was suspended in lieu of proof that she had completed an anger management course.
The slapping incident took place in April after a PSD meeting in Clay. Postelwait was apparently upset when Beard questioned her about board finances.
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