Huntington stays on track in LIPA lawsuit despite cries for help

Huntington stays on track in LIPA lawsuit despite cries for help

The Northport power plant. File photo

Huntington town elected officials refused to entertain a request to hire additional legal help in its lawsuit against Long Island PowerAuthority, despite calls from Northport residents for help.

Huntington Councilman Gene Cook (R) offered a resolution at the June 5 town board meeting to hire Manhattan-based law firm Boies Schiller & Flexner LLP as additional legal counsel in the town’s pending tax certiorari case with LIPA and National Grid over the Northport Power Station as the case heads to trial in July.

“I believe this is a very needed law firm to hire at this point,” Cook said. “For the money that this law firm would [cost], it’s a whole lot less than the hundreds of millions we stand to lose.”

For the money that this law firm would [cost], it’s a whole lot less than the hundreds of millions we stand to lose.”
– Gene Cook

A request to hear and vote on a measure was shot down by a 3-2 vote, by Supervisor Chad Lupinacci (R), Councilman Mark Cuthbertson (D) and Councilwoman Joan Cergol (D).

“There are hundreds of thousands — millions of dollars at stake now in this case,” Lupinacci said. “Huntington has been fighting hard on behalf of the taxpayers. We will continue to use all legal options at our [disposal] to make sure LIPA and National Grid honor their contractual promises.”

LIPA filed a tax certiorari lawsuit against the town assessor’s office in 2010 seeking a 90 percent reduction in the tax assessed valuation of its Northport Power Station, and seeking repayment of all taxes it claims to have overpaid since 2010 — currently amounting to more than $550 million and growing.

Cook said the Manhattan-based law firm is one of the top litigation firms in the nation, although admittedly not specialized in cases related to power plants.

“We are losing a huge opportunity and it will hurt everyone out there by not doing this,” he said.

Several prominent Northport residents had pleaded with the town officials to support Cook’s resolution Tuesday afternoon including Northport school board trustee David Stein, who spoke as a private resident in support of the measure.

The army of attorneys, lobbyists and PR titans that we are against now requires an outsized army of our own.”
– David Stein

“LIPA and National Grid have brought in a veritable army of lawyers, lobbyists and [public relations] attack dogs,” Stein said, painting an image of a David-versus-Goliath fight. “The army of attorneys, lobbyists and PR titans that we are against now requires an outsized army of our own. And so, I urge you to engage the services of the biggest, best, brightest and most well-known in all of these areas now.”

Under Cook’s proposed contract, attorneys from Boies Schiller & Flexner would have been paid an hourly rate of not more than $1,650 an hour to assist the town’s current legal representatives from Lewis & Greer P.C. in determining a strategy and arguments for the upcoming trial. These accumulated attorney fees could not be bonded under state law, according to the town supervisor, but would have required dipping into the town’s capital reserves.

“If spending $1,650 were a silver bullet that would achieve something here, I would do it,” Cuthbertson said. “The law firm Cook would like to hire has absolutely no experience in tax certiorari cases that involve power plants.”

Lupinacci said he was willing to consider looking into other prominent litigation law firms which might be able to serve the town at a lower cost.

“Sometimes when [law firms] look at a municipality, they believe they are looking at deep pockets,” the supervisor said. “We have to do some outside the box thinking and leave no stone unturned.”

If spending $1,650 were a silver bullet that would achieve something here, I would do it.”
– Mark Cuthbertson

Northport Village Deputy Mayor Thomas Kehoe and Northport resident Tammy Topel both urged the Huntington town officials to take more aggressive action in light of additional information that has become public — spoken widely about by Cook — calling the Northport Power Station a hub through which natural gas lines and fiber optic networks for internet pass through.

“I believe these are misguided attempts to incorporate other aspects into the valuation process that just aren’t there,” Cuthbertson said. “It’s a red herring and unfair to the public.”

Cook vehemently disagreed with his fellow councilman in open debate.

The town is moving forward by pursuing help from its state elected officials, according to the supervisor, including scheduling a meeting with New York Gov. Andrew Cuomo (D) to garner his support for a resolution to the case. Lupinacci said the town still remains open to negotiations.

“We are always speaking with the other side to see if there is some kind of resolution, but we are probably not going to achieve a resolution that is going to be beneficial to the taxpayers of Huntington and to our students,” Lupinacci said. “We are prepared to take this case to trial.”