Attorneys hope to resolve lawsuit that seeks to recoup Scranton school district funds

Jan. 13--Scranton School Board members will soon discuss a possible resolution to a lawsuit filed by a city resident seeking to recoup money lost due to the board's alleged mishandling of district finances.

Board President Katie Gilmartin and member Tom Schuster said they believe the board would be amenable to Paul Catalano's offer to drop a lawsuit he filed against the board if it assigns its right to seek payment from the district's errors and omissions insurance policy to him.

Catalano wants to try to recoup money taxpayers lost due to the board's alleged negligence in paying $4 million in questionable fuel surcharges to the district's busing contractor, DeNaples Transportation, and for failing to monitor payments to the district's former fleet manager, Daniel Sansky, who pleaded guilty last year to overcharging the district for vehicle repairs.

Catalano had to seek court permission to take the action because he is not a member of the school board.

Catalano's attorney, Michael Mey of Dunmore, filed a similar lawsuit against Scranton's nonuniform pension board in 2017 that sought to recoup about $3 million in double pension payments to 35 retirees. That lawsuit, filed by city Councilman Pat Rogan and Angela Sulla, a former clerical union employee, was dropped in December 2018 after the pension board agreed to assign to them the right to seek payment from an insurance company.

Catalano's suit named nine people who were on the school board at the time the payments were made -- Robert Sheridan, Robert Casey, Cy Douaihy, Paul Duffy, Robert Lesh, James Timlin, Mark McAndrew, the late Carol Oleski and Schuster. Schuster is the only defendant still on the board.

Mey said he hopes new board members will realize his offer is a "win, win" situation for the board and taxpayers.

"The fact of the matter is most of these people did not have any involvement in the matters," Mey said of current board members. "If they have the ability to obtain a recovery on the part of taxpayers, what's the down side of that?"

Schuster and Gilmartin said the board has not met recently to discuss pending litigation. They expect to do that soon and believe members will agree to the offer since it won't cost the district any money.

"The last time we had (an) update, I thought that was the direction the district was going," Schuster said.

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