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    Thursday, April 25, 2024

    East Lyme officials, developer to have mediation session today

    East Lyme — The town is going before a court-appointed mediator today in its ongoing litigation, currently in U.S. District Court, with New England National, the company that has developed land near Darrow Pond. 

    Representatives at the mediation session in Bridgeport will include at least the first selectman, two members of the Board of Selectmen and two members of the Board of Finance. 

    The longstanding legal dispute began more than a decade ago, when the company claimed in bankruptcy court that the town over-valued the assessment of its land in the vicinity of Darrow Pond. 

    Six years ago, the town and New England National signed a compromise agreement; however, in 2010 the developer claimed in a court proceeding that the town did not uphold several terms of that agreement. A year later, the developer filed a second complaint that the town failed to supervise some of its employees, among other charges. The federal bankruptcy court said it lacked jurisdiction over the 2010 adversary proceeding and dismissed it, and also granted in part a motion to dismiss the second proceeding. 

    According to court documents, the court granted a request by the developer to continue the proceedings, with additional claims, in U.S. District Court. Part of the ongoing litigation has been dismissed, while another proceeding has been referred to a special master. 

    First Selectman Paul Formica said at Wednesday’s Board of Finance meeting that he had chosen a representative of each political party from the finance board and the selectmen to attend the nonbinding mediation scheduled by a federal judge. 

    Some Board of Finance members raised questions on how the members were chosen and the process for updating the board and including it in the court case. They asked if additional finance board members could attend. 

    After discussion in which Formica said the board could change the attendees if it wished and raised the issue of whether a quorum of finance board members at the mediation session would qualify as a meeting under the Freedom of Information law, he consulted the attorney representing the town on the matter. He was advised that the other members could attend. 

    Formica said the board would be included in executive sessions if anything resulted from the mediation. 

    k.drelich@theday.com

    Twitter: @KimberlyDrelich

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