Luzerne County approves litigation settlement funding

Luzerne County Council approved funding to cover a litigation settlement Monday — a move necessary to avoid legal ramifications expected to occur the following day.

Payment was required because council had voted in September to pay $585,000 toward the $650,000 purchase of a residential property on Susquehanna Avenue in West Pittston owned by Richard and Kimberly Hazzouri to settle 2018 litigation filed by the couple.

This litigation argued West Pittston did not adhere to requirements in a flood buyout program funded by disaster recovery assistance channeled through the county community development office after record 2011 Susquehanna River flooding, preventing the Hazzouris from participating in the program.

The real estate closing is scheduled for Tuesday, and county attorneys warned council last week the plaintiffs would likely file a motion to enforce the settlement if council failed to allocate the funds necessary to proceed with the closing.

Six council members had voted last week to reject a transfer from the county’s reserve to cover the settlement, with some raising concerns about reducing the reserve: Stephen J. Urban, Gregory Wolovich Jr., Carl Bienias III, Kevin Lescavage, John Lombardo and LeeAnn McDermott.

Urban had suggested using funds from vacant positions instead of the reserve, but the administration had said it would need time to research the amount of funds available and cobble together all the budget transfers that would be necessary.

Instead, council decided Monday to transfer the $585,000 from the county community development office in addition to $17,189 to cover closing costs associated with the transaction.

Eight of the nine council members participating in Monday’s meeting approved the community development transfer: Bienias, Lombardo, McDermott, Tim McGinley, Chris Perry, Robert Schnee,Wolovich and Kendra Radle.

Urban voted no, saying the plan to use community development funds was not publicly communicated a full 24 hours before the special noon meeting. Council members Brian Thornton and Kevin Lescavage were not in attendance.

In addition to the $585,000 county contribution, the county’s insurance carrier is paying $50,000 toward the settlement, council’s resolution says. West Pittston’s insurance carrier is kicking in $15,000.

After acquisition, the county plans to sell the property hoping to recoup money spent on the settlement and return the property to the tax rolls. The opportunity to purchase the property will be publicly advertised, officials said.