001
GERALD A. VERGILlS*
KENNETH M. STENGER
ALBERT P. ROBERTS
THOMAS R. DAVIS
LOUIS J. VIGLOTTI
JOAN F. GARRETT*'"
VERGILIS, STENGER, ROBERTS & DAVIS, LLP
ATTORNEYS AND COUNSELORS AT LAW
1136 ROUTE 9
WAPPINGFRS FALLS. NEW YORK 12'i90
(X4'i) 29X- 2000
OF COUNSEL:
KAREN MacNISH
FAX (H-I:;) 29H-2H-I2
IYGAL ASSISTAN'j:
AMY E. DECARLO
MARIA L. JONES
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l'Illail: inrO(rt,,:-;rp.l'olll
CI.OSING COORDINATOR:
SUSAN E. CAFFINE
KEVIN T. McDERMOTT
ANGEL I. FALCON
ANTHONY M. DEFAZIO'H,
JAMES P. HORAN**.I
PAUL J. HAGGERTY
I:"DiviiTTED T0 PR/\CTiCE
POlJGHKEEPSIF OFFICE
'76 MAIN MALI.
POUGHKEEPSIE. NY 1260 I
(845) -152-1046
IN NY & FLA.
NEWBURGH OFFICE
299 N. PLANK ROAD. SUITE 106
NEWBURGH. NY 12550
(R45) 567-:mn
"ADMITTED TO PRACTICE
IN NY & CONN.
""ADMITTED TO PRACTICE
11\ NJ
August 30, 2007
Sedore & Company, CPA
2678 South Road
Poughkeepsie, New York 12601
Attention: MS.Linda Hannigan
Re: Town of Wappinger
Pending or Threatened Litigation
File No.: 12951.0060
RECE~\'\-~ ,
SEP ,~ 2007
TOWN CLERK
Dear Ms. Hannigan:
Pursuant to the letter request dated June 20, 2007, from Joseph Ruggiero, Supervisor of the Town
of Wappinger, the following is the status of material Pending or Threatened Litigation, Claims
and Assessments against the Town of Wappinger, as known to the best of my knowledge through
August 28, 2007.
PENDING OR THREATENED LITIGA nON
(Excluding Un asserted Claims and Assessments):
I hereby report that as of the date of this letter, there is only one (1) material Pending or
Threatened Litigation matter in which the Town of Wappinger may be named as a party. This
matter is discussed below. With respect to Tort actions, please be advised that there are claims
pending against the Town which are being defended by the Town's insurance carriers. I am
unaware of the exact number, nature, status or probability of success with respect to any of these
actions except as listed below.
Additionally, Tax Certiorari proceedings are handled by attorney, Emanuel F. Saris, Esq., with
offices at 4419 Albany Post Road, Hyde Park, New York 12538, and it is my understanding that
he will submit a separate opinion regarding same.
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0:\ Wappinger\ Town Board\PendingLitigation(.0060)\083007 letter to Sedore. doc
Last Revised 09/13/07
Claim of Schulte, Roth & Zabel. LLP
This is a claim for legal fees in connection with the successful appeal of the Absolute Properties
Management, Inc. v. Town of Wappinger law suit commenced in United States District Court for
the Southern District of New York. The outstanding balance claimed by the Schulte firm is
$391,122.66. The claim has been negotiated downward to $300,000.00, however, the Town
Board has yet to accept this reduced fee. The Town Board objects to the amount ofthe bill
because the total bill exceeded the estimate of fees provided by Schulte before the firm was
retained. It is anticipated that this matter will be resolved amicably and will be paid by serial
bonds over a five (5) year period.
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March v. Town of Wappinger
This is being defended by Grant Street Construction, Inc. and PRK Drilling & Blasting, Inc., the
Town's contractor and sub-contractor. The insurance companies for the aforementioned
contractors are defending this policy. In my opinion, there is no financial exposure whatsoever to
the Town. This matter will not be reported further.
Alpine Improvements, LLC v. Town of Wappinger (Challenging Benefit Assessment)
This matter has remained dormant for over five (5) years and I deem it abandoned. It will not be
reported further.
Joseph Boyce v. Town of Wappinger (Notice of Claim)
This matter has been settled and General Releases exchanged. It will not be reported further.
Clayton Industries, Inc.
This action is time-barred and will not be reported further.
In the Matter of Certain Disciplinary Charges Preferred by Joseph Ruggiero, Supervisor v. Linda
A. Tasadfoy
All litigation has been decided in favor of the Town. The matter will not be reported further.
Board of Managers of the Pavilion Condominium v. the Town of Wappinger
The action is now time-barred and will not be reported further.
I know of no other claims or actions pending or threatened, brought or anticipated to be brought
against the Town.
UNASSERTED CLAIMS AND ASSESSMENTS
This letter includes matters that existed as of December 31, 2006 and, in addition through the date
of this letter, August 30,2007.
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0:\ W appinger\ Town Board\PendingLitigation(. 0060)\083007 letter to Sedore.doc
Last Revised 09/13/07
.
The undersigned knows of no other unasserted claims or assessments considered to be probable
of assertion and/ or if asserted, would have a possibility of an unfavorable material outcome.
However, in the course of performing legal duties for the Town of Wappinger with respect to a
matter recognized to involve an unasserted possible claim or assessment that may call for
financial statement disclosure, and I have formed a professional conclusion that the Town should
disclose or consider disclosure concerning such possible claim or assessment, as a matter of
professional responsibility to the Town of Wappinger, I will so advise the Town and will consult
with the Town concerning the question of such disclosure and the applicable requirements of
Statement of Financial Accounting Standards No.5.
There are no other potential liabilities or loss contingencies that are required to be disclosed or
accrued in the financial statements, other than the abovementioned matters.
There are no other potential liabilities or loss contingencies which in my professional judgment
are required to be disclosed or accrued in the financial statemc'lts. All contingent liabilities set
forth above are as of the date of this correspondence. The scope of this letter includes litigation
commenced against the Town to present, except as noted above.
To the best of the knowledge of the undersigned, there are no actions that have been commenced
against the Town, or threatened to be commenced the Town, nor are there any actions pending
which would subject the Town to any monetary payment or financial loss, except as above stated.
OTHER MATTERS
The amount that the Town of Wappinger was indebted to my firm for services and expenses as of
December 31,2006 was $20,676.10.
The undersigned knows of no other un asserted claims or assessments considered to be probable.
Very truly yours,
VER.. GI~LI~;~i~~~.;;..3~.~#DA v~: LLP
,/ . tt~,-" 1.(_ ,2/ .t~e' '-<....-/
ALBER p, ROBERis~L .
APRldlb
cc: Hon. Joseph Ruggiero, Supervisor
Hon. John C. Masterson, Town Clerk
Emanuel F. Saris, Esq,
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0:\ Wappinger\ Town Board\PendingLitigation(.0060)\083007 letter to Sedore.doc
Last Revised 09/13/07