001
GERALDA. VERGILIS*
KENNETH M. STENGER
ALBERT P. ROBERTS
THOMAS R. DAVIS
LOUIS J. VIGLOTTI
JOAN F. GARRETT**
VERGILIS, STENGER, ROBERTS & DAVIS, LLP
ATIORNEYS AND COUNSELORS AT LAW
1136 ROUTE 9
WAPPINGERS FALLS, NEW YORK 12590
(845) 298-2000
FAX (845) 298-2842
LEGAL ASSISTANT:
AMY E. DECARLO
CLOSING COORDINATOR:
SUSAN E. CAFFINE
www.Ysrp.com
e-mail: info@ysrp.com
POUGHKEEPSIE OFFICE
276 MAIN MALL
POUGHKEEPSIE, NY 12601
(845) 452-1046
NEWBURGH OFFICE
299 N. PLANK ROAD, SUITE 106
NEWBURGH, NY 12550
(845) 567-3783
KAREN P. Mac NISH
KEVIN T. McDERMOTT
ANGEL I. FALC6N
ANTHONY M. DEFAZIO
JAMES P. HORAN
. ADMITTED TO PRACTICE
IN NY & FLA.
.. ADMITfED TO PRACTICE
IN NY & CONN.
November I, 2006
Sedore & Company, CPA
2678 South Road
Poughkeepsie, New York 12601
RECEIVED
NOV 2 1 2006
TOWN CLERK
Attention: MS.Linda Hannigan
Re: Town of Wappinger
Pending or Threatened Litigation
File No.: 12951.0060
Dear Ms. Hannigan:
Pursuant to the letter request dated August 30,2006, 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 November I, 2006.
Please be advised that the undersigned was originally appointed attorney to the Town of
Wappinger, effective January 1, 1990, and has been subsequently reappointed yearly thereafter
until present.
PENDING OR THREATENED LITIGATION
(Excluding Unasserted Claims and Assessments):
I hereby report that as of the date of this letter, there are some material Pending or
Threatened Litigation matters in which the Town of Wappinger was named or is expected
to be named as a party. 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 ofthe exact number, nature, status or probability of success with respect to any of these
actions except as listed below.
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0:\ Wappinger\Town Board\PendingLitigation(.0060)\ll 01 06 letter to Sedore. doc
With respect to Tax Cel1iorari proceedings, Emanuel F. Saris, Esq., formerly of this firm, with
offices at II Market Street, Poughkeepsie, New York 12601, has been retained by the Town to
defend Tax Certiorari actions and he will submit a separate opinion regarding same.
March v. Town of Wappinger
This is an action brought against the Town as a result of blasting operations conducted in
connection with Wappinger Sewer Transmission/Treatment Improvement Area Phase 3A. The
contractors were Grant Street Construction, Inc. and PRK Drilling & Blasting, Inc. The Appellate
Division, 2nd Judicial Department authorized the late filing of a Notice of Claim. By Contract, the
general contractor (Grant Street) and the blasting contractor (PRK Drilling & Blasting) were
required to name the Town as an additional insured under their insurance policies. The Town is
being defended by the contractor's insurance carrier and it is my opinion there is no exposure to
the Town.
Alpine Improvements. LLC v. Town of Wappinger (Challenging Benefit Assessment):
As noted in previous correspondence, of May 2002, the Town was sued by Alpine Improvements,
LLC, challenging the Benefit Assessment Formula for the Tri-Municipal Sewer
Transmission/Treatment Improvement Area Phase 3A Improvements. In my opinion letter dated
July 18,2003, I provided a detailed analysis of the lawsuit. It has remained dormant for four
years.
Joseph Boyce v. Town of Wappinger (Notice of Claim):
This matter has been settled and General Releases exchanged.
Clayton Industries. Inc.
As noted in my previous opinion, it is my opinion that any potential claim is now time-barred.
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 is over.
Absolute Property Management. Inc. v. Town of Wappinger
This case has resulted in a decision by the United States District Court for the Southern District
resulting in an award of $60,392.38 in favor of the Plaintiff, and a further award for attorney's
fees in the sum of$391,831.92. The matter is on appeal to the 2nd Circuit Court of Appeals and
the matter is awaiting oral argument.
In my previous opinion letter, I indicated that I did not expect an unfavorable outcome and while
a judgment was, in fact, rendered against the Town, it is my professional opinion that the
judgment will be set aside on appeal. I respectfully submit that the Judge who rendered the
decision against the Town made material reversible errors of fact and law and for those reasons it
is my professional judgment that the decision will be reversed on appeal.
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Board of Managers of the Pavilion Condominium v. the Town of Wappinger
In my report of October 5,2005, I noted that a Notice of Claim was served against the Town. It is
my opinion that the action is now time-barred.
I know of no other claims or actions brought or anticipated to be brought against the Town.
UNASSERTED CLAIMS AND ASSESSMENTS:
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 calI 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 wi\l so advise the Town and wiII 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 statements. AII 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 ofthe 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.
Very truly yours,
VERGILIS, STENGER, ROBERTS & DAVIS, LLP
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ALBERT P. ROffERTS ...... ',....-'-'
APR/so
cc: Hon. Joseph Ruggiero, Supervisor
Hon. John C. Masterson, Town Clerk
Emanuel F. Saris, Esq.
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