Insurance company launches lawsuit against Ciavarellas in Hanover Area transportation case

Sep. 21--The insurance company that paid $234,621 to Hanover Area School District in compensation for a dispute with a transportation contractor launched civil action against the contractor, according to court records.

Attorney Richard Polachek, of Polachek Law Firm, P.., filed a one-page praecipe for summons in Luzerne county Court of Common Pleas this week. The praecipe is essentially the first step for a civil suit. It offers no particulars other than the names of the parties involved.

In this case, Polachek, of Wilkes-Barre, is filing on behalf of American Alternative Insurance Corporation of Princeton New Jersey. The praecipe lists the insurance company as "subrogee" of Hanover School District. A subrogee is the person or entity assuming legal rights to attempt to collect a claim of another party, the subrogor, after paying that party's expenses arising from claims against a third party.

The action is filed against Frank J. and Dorothy Ciavarella individually, also doing business as "Star Transportation" of Hanover Township.

The case centers on Hanover Area's claim that Frank J. and Dorothy were overpaid for one year of special education student transportation, an error discovered during a state audit. The district claimed the overpayment was about $250,000 for one year, and the contractors refused to repay any of the money despite months of negotiations.

The insurance company agreed to cover the cost, giving the district $243,621. While that officially took Hanover Area out of the legal mix, district officials predicted the insurance company would attempt to recoup the expense. The praecipe doesn't expressly say that's what the suit is about, but the parties involved as well as the use of the term subrogee leave little doubt.

Frank J. and Dorothy Ciavarella are the parents of school board Member Frank Ciavarella, who was board president at the time the overpayment was discovered. He stepped down as president but did not heed calls by some to resign from the board, and continues to serve.

The board initially suspended then-Superintendent Bill Jones with pay Feb. 5 after the overpayment was discovered, and the two sides inked a separation agreement in May, paying Jones $65 per day for 182 sick/personal days, providing health insurance until Jan. 14, 2021, and paying $480.77 per day for 35 vacation days.

Reach Mark Guydish at 570-991-6112 or on Twitter @TLMarkGuydish

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