$1,000,000 in a lump sum payment.
That is the proposed settlement agreed to that the Town of Brookhaven will receive to settle a decades-old lawsuit that accused industrial waste company Covanta (now known as “Reworld) of dumping ash-waste it was not supposed to at the Town of Brookhaven dump in Yaphank.
The South Shore Press was able to access specific details of the settlement, which are found in the settlement agreement between Brookhaven and Covanta.
Covanta whistleblower Patrick Fahey claimed the waste being brought to the Town of Brookhaven dump was not what the company reported to the New York State Department of Environmental Conservation (DEC).
Fahey’s attorney submitted a letter to the court strenuously objecting to the $1,000,000 settlement, arguing that under the “New York False Claims Act” the Town of Brookhaven cannot legally enter into a settlement with Covanta. Fahey’s attorney believes the only legal party that can settle is New York State Attorney General Letitia James.
“The proposed settlement between Defendants and one Plaintiff is unauthorized. New York False Claims Act allows only the State of New York, not municipalities, to intervene at this advanced stage of litigation,” wrote Fahey’s attorney David Kovel from the Kirby McInerney law firm.
If a judge disagrees and approves the settlement, the Town of Brookhaven will receive one lump sum of $1,000,000.
The settlement agreement obtained by the South Shore Press and submitted to the Nassau County Clerk on June 4th was signed by Brookhaven Town Attorney Annette Eaderesto and Executive Vice President & General Counsel Covanta Holding Co. Thomas L. Kenyon.
It is now up to a judge whether or not the settlement is approved, and if the Town of Brookhaven has the authority to enter into the agreement.
The terms of the settlement agreement are as follows:
- Covanta denies all in connection with the Action and all allegations made WHEREAS, liability
against Covanta in the Action.
- The Town of Brookhaven has concluded that it is not a victim of fraud or "false Claims" law, or "reverse false claims" and has not suffered any damages.
- The Town of Brookhaven has concluded that this Action has never been, and continues not to be, in the best interest of the Town of Brookhaven and its residents.
- In an effort to avoid the time, expense, and uncertainty of litigation, the Town of WHEREAS,
Brookhaven and Covanta desire to resolve all claims and other disputes between them
- Covanta agrees to pay to the Town of Brookhaven a lump sump ayment of $1,000,000.
- The parties will not seek to recover from each other any portion of their costs, expenses, or attorneys' fees incurred.
- Covanta has denied, and continues to deny, any liability or fault arising out of or related to the claims.