By DAN UHLINGER
Courant Staff Writer
The state Supreme Court has ordered the
release of $27.4 million to 70 municipalities that won a lawsuit in June
against the state trash authority.
But in lifting its temporary stay, the court refused for now to allow the towns
to pay about $8 million owed to their lawyers.
David S. Golub, lead counsel for the municipalities,
said the towns would finally receive their money after years of negotiations
and court actions filed against the Connecticut Resources Recovery Authority.
"Checks are going out to each of the municipalities today," Golub said Tuesday. "We are very pleased the Supreme
Court has allowed the distributions to go forward."
The awards range from $3.6 million to the city of
The $27.4 million being distributed now is part of a total award of $36.7
million, which includes lawyers' fees and interest.
Paul Nonnenmacher, a CRRA spokesman, said the
municipalities eventually would have split that sum if the matter had not gone
to court.
"That's easy for CRRA to say now," said Joseph Meaney,
another lawyer for the towns. "It's quite clear that without this lawsuit
CRRA would not have offered to pay the towns anything."
New
The towns were the ultimate losers in a $220 million failed agreement in 2001
between CRRA and Enron Corp. The authority loaned the money to Enron, which
stopped paying the money back a couple of months later when it filed for
bankruptcy.
Nonnenmacher said CRRA has recovered about $150
million so far in Enron's bankruptcy and in lawsuits filed against law firms
and banks that advised the authority in its dealings with Enron. He said there
are still some lawsuits pending against the banks.
Officials for New Hartford and Barkhamsted said they
were forced to file the lawsuit because CRRA refused to give the towns ironclad
assurances they would receive any money recovered from the lawsuits or Enron.
CRRA officials have refuted the officials' assertions.
In June, Superior Court Judge Dennis Eveleigh awarded the towns more than $35.8
million. The authority appealed the decision to the state Supreme Court and
refused to pay.
With that appeal still pending, Eveleigh recently ordered the distribution of
his award, plus interest that would have been used partly to pay the towns'
lawyers. The authority appealed that decision, too, to the Supreme Court.
In its decision Monday, the Supreme Court said it wanted to see an explanation
from Eveleigh of his decision before the towns' lawyers are allowed to receive
their fees.
Eveleigh on Tuesday responded that he rejected CRRA's
objection to the payment of lawyer fees because he believed it was done as a
delay tactic.
Contact Dan Uhlinger at uhlinger@courant.com.