On Friday, the Supreme Court of the State of New York Appellate Division: Fourth Judicial Department released its decision that has at least an $840,000 impact to the city of Jamestown’s bottom line, all though the final financial implications could be much higher.

The latest decision is part of an ongoing legal battle involving the Jamestown Kendall Club’s collective bargaining agreement covering the years 2016 and 2017.

The long-awaited decision is the result of the Jamestown City Council voting in May 2019 to appeal a State Supreme Court decision that upheld an October 2018 arbitration ruling on the 2016-17 collective bargaining agreement (CBA) between the city and the Kendall Club. Among other things, that ruling provided a retroactive 2 percent increase in salaries for each of those two years for police officers.

In November 2018 the Jamestown City Council voted 7 to 1 in favor of challenging the initial arbitration ruling. State law requires an arbitration decision involving the police union to place a weighting factor of 70 percent toward the ability of a fiscally challenged municipality like Jamestown to pay. In challenging the arbitration process, the city felt it would be a violation of its fiduciary duty to comply the arbitration award, basing its argument on the award being in violation of the 70 percent state statute. The city’s legal argument was that the arbitration decision was “arbitrary and capricious” and did not take into account the serious financial challenges gripping the city.

The council’s decision to appeal to the Appellate Division came after Chautauqua County Supreme Court judge James Dillon ruled in April 2019 that that arbitration panel ruling on the matter would stand.

While still in office, former Jamestown mayor Sam Teresi had said the bottom-line impact would cost the city an excess of over $800,000 if the arbitration ruling where allowed to stand.

“To allow that decision to stand will have an $840,000 unbudgeted impact on the 2019 budget. And that impact is only for retroactive raises for 2016 and 2017. If that decision is allowed to stand, it could lay the groundwork for a similar retroactive payment with the fire union moving forward. And as well that $840,000 impact for the police union alone doesn’t take into account raises that might be received for 2018, 2019, and 2020 moving forward,” Teresi explained in March 2019.

The city does have an option to file yet another appeal and take the case to the New York Court of Appeals – the highest court in the state – if the council so chooses.

According to the calendar page of the State Supreme Court Appellate Division: 4th Judicial Department, attorneys Terence O’Neil from Bond, Schoeneck & King and Charles DeAngelo from Fessenden, Laumer & DeAngelo are scheduled to appear before the appellate division justices on Monday, March 30 to argue on behalf of their respective clients – the City of Jamestown and the Jamestown Kendall Club PBA.

The long-awaited showdown is the result of the Jamestown City Council voting in May 2019 to appeal a State Supreme Court Decision that upheld an October 2018 arbitration ruling on the 2016-17 collective bargaining agreement (CBA) between the city and the Kendall Club. Among other things, that ruling provided a retroactive 2 percent increase in salaries for each of those two years for police officers.

The council’s decision to appeal came after Chautauqua County Supreme Court judge James Dillon ruled in April 2019 that that arbitration panel ruling on the matter would stand.

• READ JUDGE DILLON’S DECISION

The city has long argued that it can’t afford giving officers the salary increase because it will have an impact not only on any reserve funding that has been built up, but also on all future expenses for the city. In addition they say the increase to the police union will also likely be applied to the 2016-17 Jamestown Professional Firefighters Association CBA, which is also still unsettled and has been awaiting the outcome of the police contract issue before being resolved. While still in office, former Jamestown mayor Sam Teresi had said the bottom-line impact would approach an excess of over $800,000 if the arbitration ruling where allowed to stand.

“To allow that decision to stand will have an $840,000 unbudgeted impact on the 2019 budget. And that impact is only for retroactive raises for 2016 and 2017. If that decision is allowed to stand, it could lay the groundwork for a similar retroactive payment with the fire union moving forward. And as well that $840,000 impact for the police union alone doesn’t take into account raises that might be received for 2018, 2019, and 2020 moving forward,” Teresi explained in March 2019.

The city is paying Bond, Schoeneck, and King $25,000 to handle the Appellate Division case.

Once arguments are made before the appellate division justices, they will then deliberate and deliver at some point later this year.

On Monday night the Jamestown City Council voted 8 to 1 in favor of appealing a recent State Supreme Court Decision that upheld an arbitration ruling on the 2016-17 contract with the Jamestown Kendall Club PBA and which provided a retroactive 2 percent increase for each of those two years for police officers. City Councilman Andrew Liuzzo (R-At Large) made the only “no” vote for moving forward on the appeal. He also voted “no” on initially challenging the arbitration decision in November 2018.

The city had up to 30 days to decide on whether or not it would challenge the Chautauqua County Supreme Court judge James Dillon decision after it was officially filed by the court on April 2.

• READ JUDGE DILLON’S DECISION

City officials have said that the city can’t afford the salary increase, saying it will have an impact not only on any reserve funding that has been built up, but also on all future expenses for the city. In addition they say the increase to the police union will also likely be applied to the 2016-17 fire union contract, which is also still unsettled and has been awaiting the outcome of the police contract issue before being resolved. Jamestown mayor Sam Teresi has said the bottom line impact would approach an excess of over $800,000 on the city after it was all said and done if the arbitration ruling where allowed to stand.

“To allow that decision to stand will have an $840,000 unbudgeted impact on the 2019 budget. And that impact is only for retroactive raises for 2016 and 2017. If that decision is allowed to stand, it could lay the groundwork for a similar retroactive payment with the fire union moving forward. And as well that $840,000 impact for the police union alone doesn’t take into account raises that might be received for 2018, 2019, and 2020 moving forward,” Teresi explained in March.

As a result of the city council’s action on Monday night the matter will now go before the Supreme Court Appellate Division, Fourth Department in Rochester.

The council also approved paying an additional $25,000 in legal fees to Bond, Schoeneck, and King to handle the Appellate Division case.

Last October a three-member arbitration panel ruled 2 to 1 that the city must provide a retroactive, 2 percent salary increase for all members of the Jamestown Kendall Club PBA for the years covering 2016 and 2017.

In November the Jamestown City Council voted 7 to 1 in favor of challenging that decision. State law requires an arbitration decision involving the police union to place a weighting factor of 70 percent toward the ability of a fiscally challenged municipality like Jamestown to pay. In challenging the arbitration process, the city council felt it would be a violation of its fiduciary duty to comply the arbitration award, basing its argument on the award being in violation of the 70 percent state statute. The city’s legal argument was that the arbitration decision was “arbitrary and capricious.”

On Monday, March 18, Hon. James H. Dillon ruled from the bench to deny the city’s motion to set aside the arbitration decision. The ruling came immediately after oral arguments were made by the attorneys representing the two sides. The Kendall Club was represented by attorney Charles De Angelo, from Fessenden, Laumer & De Angelo while the city was represented by attorney Terry O’Neil from Bond, Schoeneck & King.

Based on a court transcript made public this week, Justice Dillon said he felt that the 70-percent weighting factor statue was terrible,but also said it was still the law and he felt the arbitrators did follow it as required.

“This [arbitration] decision does indicate that the arbitrators took into account the 70 percent criteria, which is really a terrible statue but the legislature doesn’t care, nor does the Appellate Division care about my thought of that. Because frankly, my thought of that as a lawyer, exactly how do I present this and what do I expect from a judge on 70 percent as opposed to seventy-one, et cetera. But nonetheless, it is the law. But I think they took that into account,” Dillon explained.

Justice Dillon also said that there was evidence supported by all three arbitrators showing the statute was accounted for in the 2-1 split decision.

“I think you can see they took it into account not only in the majority opinion, but in the concurring and the minority opinion, which definitely mention it. So I can’t say — obviously, that it was considered. Otherwise you’d have nothing to dissent to… I think mathematically you can compute the cost of the arbitration from the information that I have received. So I think it’s there enough. I will at this point in time deny the motion to set aside the arbitration, confirm the arbitration, note your exceptions for the reasons you have well ably stated,” Justice Dillon explained to the attorneys on hand.

Following this week’s City Council Voting session, we asked Jamestown Mayor Sam Teresi his thoughts on the case now that the ruling had been made public.

Sam Teresi

“We were disappointed to a certain extent but, quite frankly, it’s not unusual that a lower court level like this, that they would just turn it over to the appeals court and allow the parties to deal with it before a five-member appellate division panel,” Teresi said. “On the one hand we were disappointed but on the other hand it wasn’t something that was completely shocking to us. Now its a matter for the city council and I, and our legal team, to determine what steps we may want to take next towards an appeal.”

The city spent $25,000 to challenge the arbitration and if it were to appeal Justice Dillon’s ruling, the matter would then proceed to the 4th Appellate Division in Rochester, likely costing the city more money. However, Mayor Teresi notes that if the city were to accept the decision, it will have a major financial impact moving forward.

“To allow that decision to stand will have an $840,000 unbudgeted impact on the 2019 budget. And that impact is only for retroactive raises for 2016 and 2017. If that decision is allowed to stand, it could lay the groundwork for a similar retroactive payment with the fire union moving forward. And as well that $840,000 impact for the police union alone doesn’t take into account raises that might be received for 2018, 2019, and 2020 moving forward,” Teresi explained.

While Judge Dillon made his decision from the bench, he still provided a formal, written decision and sent it to both parties. Once that is done, the city will have 30 days to decide if it wants to accept the arbitration panel’s decision or appeal to the higher court in Rochester.

As WRFA reported in February, a similar scenario also played out recently with the city of Plattsburgh, NY and its fire union. There, the city challenged an arbitration ruling, arguing it failed to follow the 70-percent statue. A Supreme Court upheld the arbitration ruling and it was eventually appealed by the city to the state appellate division, which also eventually upheld the lower court’s decision.

Last October the three-member arbitration panel ruled 2 to 1 that the city must provide a retroactive, 2 percent salary increase for all members of the Jamestown Kendall Club PBA police union for the years covering 2016 and 2017.

• READ COMPLETE ARBITRATION RULING

–

• RELATED: State Law Required City to Participate in Arbitration with Police Union, Also Provided Opportunity to Challenge

In November the Jamestown City Council voted 7 to 1 in favor of challenging the arbitration decision. The city claims the arbitration panel didn’t follow proper state guidelines when determining the salary increase and considering the financial position of the city. As a result, it is asking the court to vacate the decision.

The arguments will take place in Chautauqua County Supreme Court with Hon. James Dillon presiding. The Kendall Club is being represented by legal counsel from Fessenden, Laumer & De Angelo while the city will be represented by Bond, Schoeneck & King.

Judge James Dillon denied Sealand Waste LLC’s summary judgment June 11, deeming a 2007 Waste Disposal law in the town of Carroll unconstitutional for being arbitrary and capricious.

Similarly, Dillon also denied the town’s motion for summary judgment to dismiss the complaint of the law.

However, while the 2007 Waste Disposal law remains in effect, the three causes of action from Sealand waste are still pending and may require a trial to reach a verdict. Those three causes include criticisms of the 2007 law being a substantive due process violation, regulatory taking of property without compensation, and being arbitrary and capricious.

A Sealand waste official believes a verdict from Dillon could have been reached at the hearing on June 11. Instead, the denial from Dillon will likely move the case to trial.

The legal battle dates back over a decade when a new landfill was in the planning stages of development on the Jones-Carroll Landfill property, located on Dodge Road in Carroll.

The approval by the board comes after it had initially denied a special-use permit application last November, although that was quickly overturned by Supreme Court Justice James Dillon.

The board – along with several residents – have said they were concerned with the car lot opening for a couple of reasons. Some cite safety concerns because it is near a busy intersection, while others question the location being the best spot for a dealership. However, Justice Dillon states the board couldn’t deny the permit based on concerned residents.