Lawsuit Over Incinerator Commences
Way back in 2010 we wrote about the City of Harrisburg’s real possibility of filing for Chapter 9 bankruptcy due to a series of intricate financial ties between the City, an independent authority, and a garbage incinerator.
The City did eventually enter Act 47 distressed status at the end of that year (language on cities being in a state of fiscal emergency was added to the statute to apply to Harrisburg, and now that language is in the statute to apply generally to all municipalities in fiscal distress). Under the terms of the law Harrisburg is slated to leave Act 47 in 2021.
But before that time arrives the Commonwealth, the Department of Community and Economic Development, the City of Harrisburg, and the authority have filed a lawsuit in Commonwealth Court against a collection of companies related to the charges of “…professional malpractice, fraud and unjust enrichment claims legal firms, financial advisors and engineers that convinced city officials to sign off on a guarantee of a risky retrofit project in 2003”. A news article states that the plaintiffs are suing for “…punitive damages, with interest” while another states that the damages being sought are not specific.