Solicitors from Luzerne and Lackawanna counties say they’re interested in discussing a settlement of their dueling litigation over the region’s Triple-A baseball franchise.
The counties disagree over which should keep $7.3 million, or half of the $14.6 million paid when the New York Yankees and Mandalay Baseball Properties bought the franchise through their joint SWB Yankees LLC in 2012.
Luzerne County filed its suit against Lackawanna in 2010, arguing it is entitled to half the proceeds due to the wording in a 1986 agreement when the two counties purchased the franchise for $1 million each. A franchise is a claim to own a minor league team, and this one is occupied by the Scranton/Wilkes-Barre RailRiders.
The 1986 agreement says the two counties shall share equally in the distribution of “any such proceeds” if the franchise is sold after the Lackawanna County Multi-Purpose Stadium Authority receives up to $345,000 for its cost to bring the franchise here.
Lackawanna, which later filed its own suit against Luzerne, has maintained Luzerne isn’t entitled to any proceeds and owes Lackawanna millions of dollars for baseball stadium repairs and construction.
The 1986 agreement was hastily completed and means Luzerne County should receive net proceeds after stadium repairs — not gross proceeds, Lackawanna County has said.
In response, Luzerne County has said it never had a legal or contractual obligation to fund the stadium because Luzerne was not involved in the facility or franchise operations and profits. Lackawanna County countered that the franchise would have been taken away without stadium repairs.
The subject came up during Luzerne County Manager C. David Pedri’s recent public forum, when citizen Brian Shiner asked what’s happening with the suit.
Pedri said the litigation is still in the discovery stage, with some depositions completed.
“I truly believe the county has a strong case in that matter,” Pedri said.
The manager said he’s optimistic the litigation will come to a head in 2017 and hopes Lackawanna County would discuss a “reasonable” settlement that he could bring to the county council for its consideration.
County Chief Solicitor Romilda Crocamo said last week the county will reach out to Lackawanna County.
“A significant amount of discovery has been completed, and we are at a point where we will attempt to negotiate in good faith,” Crocamo said, stressing her office has been in “constant communication” with the Pittsburgh-based firm Murray, Hogue and Lannis representing Luzerne County.
Lackawanna County’s general counsel, Donald Frederickson, said his county has had a “good working relationship” with Luzerne County in other areas and is open to settlement discussions.
“Lackawanna County looks forward to working with our neighbor to the south in a friendly and amicable way,” Frederickson said. “We’d like to resolve this litigation if we can. Government against government is not good because it costs the taxpayers money.”
Frederickson said he believes his county has a “solid case” seeking reimbursement for stadium costs.
“Their suit wants half of the sales price of the team. Ours then wants half of the cost to keep the team here, and our half far exceeded theirs,” he said, citing a total $60 million tab tied to the PNC Field baseball stadium in Moosic. “Bringing the team here is one thing, but you have to keep it here.”
Luzerne County officials have said they would place any windfall from the litigation into a reserve to reduce the county deficit, which auditors pegged at $9.4 million the end of 2015.
