UPDATED with comment from Derby Corporation Counsel Joseph Coppola.
A path to a possible settlement offer has been cleared in the case of Ceruzzi Derby Redevelopment, LLC versus City Hall.
Background
Ceruzzi Redevelopment is suing the city for breach of contract, claiming Derby government caused them to waste roughly $4.5 million on ever-changing plans for downtown redevelopment.
The redevelopment area is the land between Main Street and the Housatonic River.
The city couldn’t make up its mind as to the type of development it wanted, the lawsuit claims — and didn’t hold up its end of the contract by finding a place to relocate existing businesses, among other things, the lawsuit states.
That stalled the project, as did the city’s problems coming up with cash to cover parts of the project.
Citing a lack of progress, the Board of Aldermen threw Ceruzzi off the project in December 2007 — an illegal act according to the lawsuit.
Derby officials have denied Ceruzzi’s claims and put the lack of redevelopment downtown on the LLC’s shoulders.
A message seeking comment Tuesday was left with Thomas Lambert, the attorney representing Derby in the case.
Joseph Coppola, the city’s corporation counsel, called the Valley Independent Sentinel Wednesday and said the city is waiting to see what the plaintiff asks for.
The contract between Ceruzzi and the city states the city is supposed to reimburse Ceruzzi for some services rendered when the two parties worked together.
However, the two sides thus far have been “way off” on what that dollar amount is, Coppola said.
The Latest
On Sept. 15, Judge Alfred J. Jennings, acting as a trial referee in the case, approved a motion first proposed by the plaintiffs in July.
It could clear the path for Ceruzzi to make an monetary offer to the city which, if accepted, would bring the case to a close.
Christopher Rooney, the attorney for Ceruzzi Derby Redevelopment, LLC said he has not discussed a settlement his client, Louis L. Ceruzzi, Jr.
However, Rooney said he has been hoping to settle the case for some time, but that Derby “has not been amenable.”
That being said, when and if Rooney will hunker down and come up with a settlement offer is not known. Whenever he does, Derby would have 30 days to respond.
“I’d assume we would make an offer at some point,” Rooney said.
The Procedure
The trial referee’s decision last week sets up a specific procedure Rooney will use to make the offer to Derby, if and when he chooses.
It’s something out of a B‑movie, but apparently the way certain cases work on the state’s “complex litigation“ docket in Stamford.
The “offer of compromise” (to me and you — the amount of money Ceruzzi wants to settle) goes into a sealed envelope — one that can not be seen by Judge John F. Blawie, the judge presiding over the case.
The contents of the envelope are not sealed from public inspection, and may be opened by any clerk and assistant clerk, according to court documents.
If Derby officials say they’re not interested in settling the case — and the city ends up losing the case — Ceruzzi would receive the amount of money cited in the envelope — plus interest.
How Much?
Rooney declined to name a price Tuesday.
However, in court documents, in addition to spending $4.5 million out of pocket, Ceruzzi Derby Redevelopment, LLC “lost profits in excess of $20 million.”
Ceruzzi Derby Redevelopment, LLC was a joint venture between Louis Ceruzzi, Jr., BVS Acquisition and Derby Partners, LLC.
If a settlement is not reached, the lawsuit is scheduled to proceed to trial in June.
