District mulls lawsuit appeal

March 11, 2006

By PAT LITOWITZ
plitowitz@ncnewsonline.com

The New Castle Area School Board will decide the next course in its legal battle with the New Castle News.

While that's taking place, school officials are looking into how the district will pay for expenses associated in the case -- if it is forced to do so.

The dispute is an offshoot of a September 2004 lawsuit involving the district and two families over the district's uniform policy. While a settlement was eventually reached, neither party provided information to the public.

U.S. District Judge Arthur J. Schwab then ordered the agreement sealed. Citing the state's Right to Know Law, News publisher Max Thomson sought details of the settlement.

In August, News attorney James Manolis filed suit against the district. Senior Judge Michael Wherry ruled in favor of The News. The newspaper also won attorney's fees, which amount to $8,683.25, and approximately $200 in court costs.

While solicitor Charles Sapienza initially said the district would appeal, it is the school board's decision as to whether the case will move to Commonwealth Court. Sapienza is expected to discuss the district's options in executive session Monday during the board's monthly work session.

"I don't have enough information about the steps that have occurred other than what I read in the paper," board member Donna Donati said yesterday. "I'll ask attorney Sapienza to bring me a summary report.

"I like to research things."

The board's vice president, Peter J. Yerage, said he is not sure what action he would like to see the district take. Another board member, Charlotte Sheffield, said she could not comment on the matter.

Business manager Joe Ambrosini said he is determining if the district's insurance carrier, the Pennsylvania School Boards Association Insurance Trust, will provide coverage under its errors and omissions policy. The M & M Insurance Group, located on Wilmington Avenue, is the district's local agent.

This is the same policy the district used to pay the families in the school uniform settlement.

The district must pay a $5,000 deductible for each claim it makes. In the case of the uniform lawsuit, the district owed for two deductibles.

"The claim has been submitted, and the determination on this has yet to be made," Ambrosini said.

At issue for the insurance carrier is whether the case with The News constitutes a new claim or falls under the uniform lawsuit. Another possibility is that no coverage exists.

If that is the case, the district would pay The News' entire legal expenses in addition to court costs.

Board member Philip Conti wants the district to resolve the dispute.

"I'm not interested in spending any more taxpayer money on a case the district lost," he said. "If I can be assured it will be a slam dunk for the school or in the event the district loses the case that the board, administration and solicitor cover the additional legal costs, (then we can appeal)."