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Thread: Taxpayers Association lawsuit

  1. #1
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    Taxpayers Association lawsuit

    Following is article from Buffalo news regarding "Lancaster Taxpayers Association" members suing Town Supervisor and Town Board members for $15,000.

    Gotta wonder if it makes sense for a Taxpayers Association to file suit, knowing that, the Town, in the long run, will have to pay the legal fees. (Which will be more than the amount they are suing for).
    How can this possibly be good for the Town??

    ________________________________

    TOWN OF LANCASTER
    Lawsuit against town could cost taxpayers
    By NIKI CERVANTES
    News Northtowns Bureau
    3/5/2004
    A lawsuit that seeks $15,000 from the personal pockets of Lancaster Supervisor Robert H. Giza and most of the Town Board could end up costing taxpayers a significant chunk of change, too.

    The suit is related to a new headquarters for Lancaster police.

    Paul Weiss, the attorney representing the residents who filed the suit, said the attorney representing town officials appears to be dragging his feet on the matter.

    For that reason, Weiss is asking the court to ensure his fees are paid by the town - or even the town officials themselves.

    That could "easily" amount to at least $10,000, Weiss said.

    "He isn't returning my calls," Weiss said of Christopher Trap, the attorney who is representing Lancaster in this matter.

    Trap did not return calls by The Buffalo News for comment.

    At issue is a suit filed late last year over a study on the best location for a new station for the newly merged Lancaster town and village police forces.

    Although town officials favored the former Colecraft manufacturing plant on Walden Avenue, the Village Board asked them to first study Village Hall and other options.

    The two boards each chipped in $7,500 for a feasibility study by Trautman Associates.

    The flap - one of many that erupted last summer during the tense race for supervisor between Giza and Lancaster Village Mayor William Cansdale - began when it was later learned the town already had entered into a purchase agreement with Colecraft.

    Village trustees and other critics of the Colecraft site contended the study was a way of tricking them into not launching a permissive referendum aimed at stopping the project.

    Giza has denied the allegations repeatedly, insisting the Colecraft contract was public knowledge and that, at any rate, it had a clause that would have allowed the town to bow out if the study showed another site was better.

    In August, the Village Board voted to sue the town to get its $7,500 back. However, Cansdale said the trustees subsequently decided not to go to court.

    "The cost (of going to court) would have outweighed the benefits," he said.

    The suit now facing the town was filed in November by Gary Howell, Daniel Beutler, Jeff Davis, Henry Gull and Donald Symer - all harsh critics of town government.

    It is against Giza and Town Board members Mark Montour, Ronald Ruffino and Donna Stempniak. It alleges they are personally liable for wasting municipal funds and seeks $15,000 in damages from them.

    Other problems related to the suit have cropped up for the town as well. The town's insurer, Coregis Insurance Co., has refused to defend the officials in the case. As a result, the board voted in January to hire the law firm of Bouvier and O'Connor to represent the town.

    The firm is charging the town a discounted rate of $145 an hour for partners, $135 for senior associates, $125 for associates and $75 for other services, according to a January letter from the firm to Town Attorney Richard Sherwood.

  2. #2
    Tony Fracasso - Admin
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    Buffalo, New York, United States
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    Why is the tax payer paying thier legal fees?

    Why isn't the town using at least thier own attorney?

    WHy would they do a study after purchasing the building?

    What is the point of merging if it made the building to small to work from where they have to go spend millions to referbish a old building. Why couldn't they just build an inexpensive steel frame building? It's just more for the tax payer to pay for.

  3. #3
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    The Buffalo News article stated: "The town's insurer, Coregis Insurance Co., has refused to defend the officials in the case. As a result, the board voted in January to hire the law firm of Bouvier and O'Connor to represent the town."

    It seems quite apparent that the town's own insurance company (Coregis) would not stand behind the expenses of the lawsuit or compensation determination because they felt the town entered into an improper contract with the village to have a study (feasibility study for the Colecraft building) on a project (purchase of the Colecraft building) that they had already purchased.

    The town acted in bad faith and the insurance company acted as they should have - denial to support coverage for an egregious act. The town hired another firm to sue Coregis for all expenses resulting from the litigation.

    If the town was unable to recoup the expenses from the insurer, wouldn't it be fitting to see the town board members be responsible for paying the litigation fees and possible suit damages - instead of the taxpayers? Impossible, but just hoping that could be the case!

    pudge

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