9/7/07 - Judge: County Moose Lodge contract valid

(As published by Cortland Standard, Corey Preston reporting)

A state Supreme Court judge ruled Thursday that the county breached a valid contract when it voted in January to void its agreement to purchase the Moose Lodge on south Main Street.

Judge Philip Rumsey found that the county — when legislators initially voted in favor of purchasing the Moose Lodge for $250,000 in December — entered into a binding contract, and that the subsequent cancellation of that contract in January was not legal without the Moose Lodge’s consent.

The ruling does not address how much the county will owe the Moose Lodge for the breach of contract.

However, based on another purchase offer received by the Moose Lodge after the county backed out of the deal for $200,000, attorney Russ Ruthig said that $50,000 plus interest and court expenses would likely be amenable to his client.

From the county’s standpoint, Rumsey’s decision is harbinger for two other cases related to the south Main Street land deal, in which nine parcels were involved at a total cost of $894,000.

A case against the county, in which the owners of Robbins Vending ask for the county to proceed with the agreed-upon $300,000 purchase of two parcels at 159 Main St., is awaiting argument in Rumsey’s court.

A third potential suit looms from property owner Annamaria Maniaci who filed a notice of claim against the county in June, but has not yet filed suit.

Maniaci wound up selling her home for $9,000 more than the county had agreed to pay, however she claims the county’s retreat from the original deal cost her $13,000 in various expenditures, and is asking the county to pay the $4,000 difference.

Legislature Chairman Marilyn Brown (D-8th Ward) said that Rumsey’s ruling “opens the door” for similar rulings on the other legal actions against the county.

“If we breached a contract, the others have to be breached too, I would think,” Brown said.
Brown, while she said she was concerned about the rising legal costs to the county, said she agreed with Rumsey’s decision.

In a press release issued this morning, Brown questioned County Attorney Ric Van Donsel’s “performance and legal advice” to the Legislature.

Brown said, through the press release, that she had approached Van Donsel prior to the January meeting at which the purchase was revoked, and told him that, once the sellers had been notified, she felt the Legislature could not reconsider.

“I went to his office and told him that, but he was basically saying the Legislature can do what they want to do,” Brown said. “Now we’re stuck in this legal battle, and he wants to appeal the judge’s decision, but I want to know at what point this is going to end? How much money do we have to spend fighting this when the judges’ ruling is perfectly clear?”