Winsted selectmen approve lawsuit settlement

WINSTED —  During an executive session at a special meeting of the Board of Selectmen on Monday, April 3, the board unanimously voted to approve a settlement in an almost three-year court case involving retired police officers Robert Davidson and Timothy O’Connor.

According to Town Manager Robert Geiger, the details of the settlement will be made public if and when the attorney representing Davidson and O’Connor approves the settlement.

The lawsuit was filed by the two in the Judicial District of Litchfield on Aug. 13, 2014, by Attorney Rachel M. Baird of Torrington.

It was filed against both the town and former Town Manager Dale Martin.

However, because Martin resigned from office on Nov. 18, 2015, in order to accept the position of city manager of Fernandina Beach, Fla., he was removed as a defendant in the lawsuit.

 Lawsuit details

According to the lawsuit filed by Baird, which is available on the state’s court database website, Davidson served as a full-time officer with the Police Department and retired on June 30, 2006, after 26 years.

O’Connor served as a full-time officer with the department for 26 years until he retired on March 13, 2012.

Both were members of the United Public Service Employees Union Cops Unit #330 and contributed to a retiree’s insurance fund during their employment, with O’Connor contributing $520 semiannually and Davidson contributing $500 semiannually.

In the lawsuit, Baird wrote that, since their retirement, both O’Connor and Davidson received benefits through the insurance fund.

 Centrella’s involvement

Baird wrote that the fund is controlled by the town’s finance director.

“Town Manager Martin informed [Davidson and O’Connor] on Oct. 28, 2013 in a written notice addressed to ‘all affected retirees’ that ‘due to the lack of funds as determined and documented by the Town of Winchester Finance Director’ insurance fund benefits would cease on Dec. 31, 2013,” Baird wrote. “[The notice] represented that the finance director had determined and documented that the insurance fund was depleted with an ending balance of $0.”

The finance director at the time Martin wrote the memo was Robin Manuale, who worked for the town from March 2013 to 2014.

Previously, the finance director for the town was Henry Centrella.

In January 2014, Centrella pleaded guilty to five charges of larceny in his appearance at Litchfield Superior Court.

In April 2014, Judge James Ginocchio sentenced Centrella to 20 years in prison, suspended after 11 years and five years probation.

He also has to repay at least $2.7 million to the town of Winchester.

Centrella was the finance director for the town from 1977 until he was fired in January 2013.

In the lawsuit, Baird cited several times from 2010 to 2013 when union president Michael Roy obtained financial reports on the status of the fund from Centrella.

“Town Manager Martin told Roy in November 2013 that in his opinion the town owed the insurance fund $96,000 because the day after Centrella showed Roy the insurance fund bank statement, Centrella removed $96,000 from the insurance fund to the town’s general fund,” Baird wrote.

Centrella was placed on administrative leave by Martin in November 2013.

Baird then cited several times during a period from April 2010 to December 2013 where the insurance fund’s bank statement showed several withdrawals and deposits.

 Claims made in lawsuit

Baird made a claim of breach of contract by the town as the first count of the lawsuit.

“The defendants breached the 2008 [union contract] by terminating the plaintiff’s insurance fund benefits when the insurance fund has $18,717.22 available for the plaintiffs’ coverage,” Baird wrote. “The plaintiffs have suffered damages and irreparable harm in loss to healthcare, out-of-pocket costs for healthcare, expenses of healthcare premiums and emotional distress.”

Baird also made claims of breach of fiduciary duty, unjust enrichment and ultra vires acts by the town (in legal terminology, ultra vires refers to acts outside the town’s authority).

 Lawsuit request

In the lawsuit, Baird asked for a permanent injunction compelling the town “to provide benefits to the plaintiffs for the expenses and costs of their healthcare equivalent to the benefits they received on and prior to Dec. 31, 2013, and at the same cost to the plaintiffs.”

Baird also asked for a temporary injunction compelling the town to compensate Davidson and O’Connor ‘s healthcare expenses and costs since Dec. 31, 2013, along with monetary damages and attorney fees and costs.

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