Freight Yard Attorneys File Motion to Begin CollectionsBy Tammy Daniels, iBerkshires Staff
02:14AM / Tuesday, September 01, 2015 | |
 The attorneys for Freight Yard Pub have filed a request to begin collections on damages from the Redevelopment Authority. |
NORTH ADAMS, Mass. — The Freight Yard Pub is asking a judge to allow it to make collections efforts for nearly $300,000 against the Redevelopment Authority.
The request comes in the wake of the City Council's rejection on Aug. 11 to help pay for the judgement against the authority.
The restaurant, operating as Bay State Hospitality Group Inc., won a Superior Court case last fall against the authority, a semi-independent governmental body that oversees Western Gateway Heritage State Park and certain sections of the downtown.
The Redevelopment Authority was found by a jury to have broken an "implied covenant of good faith" with the restaurant related its parking situation at the park during the reconstruction of the Hadley Overpass. Superior Court Judge John A. Agostini upheld a jury award of $300,000 against the authority earlier this summer.
The attorneys for Bay State filed a motion on Friday to set aside an intermediate judgement to dismiss the case made on July 1, when the city and Bay State were in the process of settling.
The authority, at the request of Mayor Richard Alcombright, approved a settlement on July 8 to pay the restaurant $287,574.89; the restaurant agreed to place a sum of $42,416.62 in escrow to secure one year's payment of rent.
Some $130,000 of the authority's $167,000 cash on hand would be used, with another $160,000 borrowed by the city. Alcombright had intended for the authority to enter into some type of payback mechanism to make the city whole.
However, the settlement was shot down by the council, which split 4-4 on the issue. An affirmative vote of six was required to authorize the borrowing.
Bay State's attorneys, Cohen, Kinne, Valicenti & Cook LLP, refer to the vote in their request for judgment.
"According, the settlement cannot be reached and Plaintiff seeks Entry of Final Judgment so that it may commence collection efforts."
The settlement figure approved by the authority on July 8 included the 12 percent interest accrual on the jury award through Aug. 1, as well as back rent owed by Freight Yard Pub.
The mayor said on Monday he was aware of the filing and was working with the Redevelopment Authority on a settlement plan that would not go through the city.
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