Judge Orders CRRA To Set Aside $70 Million


NEW HARTFORD – The judge in the case between the Connecticut Resources Recovery Authority and the 70 towns in its Mid-Connecticut Project has issued a "pre-judgment remedy" statement ordering the trash-recovery agency to set aside $70 million to ensure funds are available should CRRA lose the case.

Waterbury Superior Court Judge Dennis G. Eveleigh ruled Feb. 22 that "there is probable cause for the court to find that CRRA has engaged in an illegal loan" and "that CRRA has been unjustly enriched to the detriment of the municipalities by its actions."

The judge, who issued the pre-judgment on the plaintiffs’ behest, made it clear that this ruling should not be "confused with a final judgment in the case."

He also issued a gag order to both sides, who are now working on preparing their final written briefs.

Mediation sessions held last month were largely unsuccessful. The dispute will have to be settled in court.

The issue centers on the CRRA’s ill-fated 2001 trash-for-energy deal with Enron. Following the Texas energy giant’s collapse, which cost the CRRA an estimated $220 million, the quasi-public waste-recovery authority raised tip fees for the 70 towns in its Mid-Connecticut Project.

The towns have argued that they have lost $63.3 million thus far as a result of the raised tip fees, and stand to lose another $6.6 million over the next five years if nothing is done to correct the imbalance.

Representatives for the 70 towns are suing the agency to recover the lost tip fees, and further charge that the CRRA has used funds recovered in other settlements to pay down its own debts instead of reimbursing the towns themselves.

In 2005, the CRRA was able to get back $111 million by selling off assets. Then, in December 2006, the New York law firm of Hawkins, Delafield & Wood LLP settled with the CRRA, agreeing to pay $21 million to help reimburse the 70 Mid-Connecticut Project towns. But New Hartford Selectman Bill Baxter said in January that, despite having a sizeable surplus, the CRRA failed to return any of those funds to the towns.

"There was admission in court that they didn’t return $25 million in surpluses," he said. "We also know that $38 million was taken out of reserves when the initial Enron deal went sour. What was taken from the towns in raised tip fees over the last four to five years should be returned."

It seems the final decision will have little or nothing to do with whether or not it is determined that the CRRA intentionally wronged its member towns.

"A lower court has held that the plaintiffs’ claims of breach of fiduciary duty and unjust treatment do not require any finding of intentional misconduct," Judge Eveleigh wrote Feb. 22. "The court finds that there is probable cause to find that the CRRA had a fiduciary relationship with the municipalities of the Mid-Connecticut Project."

Baxter said he expects a final decision to be rendered this spring.

Latest News

Robert J. Pallone

NORFOLK — Robert J. Pallone, 69, of Perkins Street passed away April 12, 2024, at St. Vincent Medical Center. He was a loving, eccentric CPA. He was kind and compassionate. If you ever needed anything, Bob would be right there. He touched many lives and even saved one.

Bob was born Feb. 5, 1955, in Torrington, the son of the late Joseph and Elizabeth Pallone.

Keep ReadingShow less
The artistic life of Joelle Sander

"Flowers" by the late artist and writer Joelle Sander.

Cornwall Library

The Cornwall Library unveiled its latest art exhibition, “Live It Up!,” showcasing the work of the late West Cornwall resident Joelle Sander on Saturday, April 13. The twenty works on canvas on display were curated in partnership with the library with the help of her son, Jason Sander, from the collection of paintings she left behind to him. Clearly enamored with nature in all its seasons, Sander, who split time between her home in New York City and her country house in Litchfield County, took inspiration from the distinctive white bark trunks of the area’s many birch trees, the swirling snow of Connecticut’s wintery woods, and even the scenic view of the Audubon in Sharon. The sole painting to depict fauna is a melancholy near-abstract outline of a cow, rootless in a miasma haze of plum and Persian blue paint. Her most prominently displayed painting, “Flowers,” effectively builds up layers of paint so that her flurry of petals takes on a three-dimensional texture in their rough application, reminiscent of another Cornwall artist, Don Bracken.

Keep ReadingShow less
A Seder to savor in Sheffield

Rabbi Zach Fredman

Zivar Amrami

On April 23, Race Brook Lodge in Sheffield will host “Feast of Mystics,” a Passover Seder that promises to provide ecstasy for the senses.

“’The Feast of Mystics’ was a title we used for events back when I was running The New Shul,” said Rabbi Zach Fredman of his time at the independent creative community in the West Village in New York City.

Keep ReadingShow less
Art scholarship now honors HVRHS teacher Warren Prindle

Warren Prindle

Patrick L. Sullivan

Legendary American artist Jasper Johns, perhaps best known for his encaustic depictions of the U.S. flag, formed the Foundation for Contemporary Arts in 1963, operating the volunteer-run foundation in his New York City artist studio with the help of his co-founder, the late American composer and music theorist John Cage. Although Johns stepped down from his chair position in 2015, today the Foundation for Community Arts continues its pledge to sponsor emerging artists, with one of its exemplary honors being an $80 thousand dollar scholarship given to a graduating senior from Housatonic Valley Regional High School who is continuing his or her visual arts education on a college level. The award, first established in 2004, is distributed in annual amounts of $20,000 for four years of university education.

In 2024, the Contemporary Visual Arts Scholarship was renamed the Warren Prindle Arts Scholarship. A longtime art educator and mentor to young artists at HVRHS, Prindle announced that he will be retiring from teaching at the end of the 2023-24 school year. Recently in 2022, Prindle helped establish the school’s new Kearcher-Monsell Gallery in the library and recruited a team of student interns to help curate and exhibit shows of both student and community-based professional artists. One of Kearcher-Monsell’s early exhibitions featured the work of Theda Galvin, who was later announced as the 2023 winner of the foundation’s $80,000 scholarship. Prindle has also championed the continuation of the annual Blue and Gold juried student art show, which invites the public to both view and purchase student work in multiple mediums, including painting, photography, and sculpture.

Keep ReadingShow less