Court of Appeals rules En-Joie contract was valid

John Karedes

BY JUSTIN WALDEN Press & Sun-Bulletin ENDICOTT -- The 2 1/2-year legal dispute between the former manager of the En-Joie Golf Club and the Village of Endicott reached one climax Thursday with a ruling against the village. But don't expect the court battles to end soon. Court of Appeals Judge Victoria Graffeo wrote a unanimous eight-page opinion that says the March 2000 contract between former En-Joie Manager John L. Karedes and the village was valid and enforceable. The court agreed the contract Karedes had would hold, even after the trustees who approved it were voted out of office. Having lost one argument, the village would like to another chance to argue its case on different points. But whether the case will be retried is still up in the air. The Court of Appeals has returned the case to the state Supreme Court's Appellate Division. David M. Garber, a Syracuse lawyer representing the village in the case, said the village hopes to ask the Appellate Division to send the case back to trial in state Supreme Court in Broome County. But Garber said he's not sure if the Appellate Division will grant the village the chance to re-argue the case. If the case does go to trial again, Garber said, there may be questions of whether the March 2000 contract was granted based on favoritism. Meanwhile, Karedes' Norristown, Pa., attorney, John A. Gallagher, said the Court of Appeals' ruling strengthens Karedes' federal breach of contract lawsuit against Endicott. "We're thrilled beyond all words," Gallagher said. Karedes, 36, of Union wants the village to pay him the money he would have received under the contract, plus interest, Gallagher said. The original pact was for $200,000. "We believe John's owed some substantial damages," Gallagher said. The legal dispute between Karedes and the village began in December 2000, when Gallagher filed a petition in state Supreme Court asking the court to declare the contract valid. Colella never signed the March 2000 contract between Karedes and the village. Colella said Thursday he doesn't know how much the case has cost the village in legal fees. When asked for comment about Thursday's ruling, he turned and walked away from a reporter. Update: Karedeses agree to settle lawsuits Father, son will take cash payment, but won't get old En-Joie jobs back BY JUSTIN WALDEN Press & Sun-Bulletin ENDICOTT -- Two former managers at En-Joie Golf Club have reached a settlement with the village that will pay them less than half of the $850,000 they were demanding, an attorney representing the village said. The agreement with John and Louis Karedes will close a bitter, nearly three-year legal battle. John Karedes formerly managed the golf club; his father managed the restaurant there. Attorneys from both sides have agreed to the terms of the settlement. All that is needed is formal approval by Endicott's six-member board of trustees, said Stephen Helmer of Syracuse, Endicott's attorney. Trustees will likely approve the deal during a regularly scheduled meeting on Monday, Helmer said. The settlement makes no reference to either Karedes returning to work at En-Joie. That means John and Louis Karedes will not get their old jobs back, Helmer said. "The parties realized that it was time to move on," Helmer said. "There's going to be finality on each and every case between John and Lou Karedes and the village and Mayor (Michael E.) Colella." Legal wrangling between John Karedes and the village began in December 2000, when Karedes asked the state Supreme Court in Binghamton to force Colella to sign a contract that had been approved by the village board in March 2000. The dispute intensified when trustees and Colella terminated the pact in March 2001. The agreement will end two pending lawsuits by John Karedes, one a breach-of-contract suit in state Supreme Court and the other, in U.S. District Court in Syracuse, claiming defamation of character by Colella, and political discrimination and breach of contract by the village board. Trustees rescinded Louis Karedes' contract to run En-Joie's restaurant in January 2001. That prompted a lawsuit in state Supreme Court by the elder Karedes alleging breach of contract. Karedes had managed the club restaurant since 1963. A jury trial for damages stemming from Louis Karedes' breach-of-contract lawsuit was scheduled to start Monday. John Gallagher, the Karedeses' Norristown, Pa., attorney, previously said Louis Karedes was seeking $400,000 in damages. Helmer said he received a letter last Thursday from Gallagher, indicating settlement demands. The two sides worked on the deal by phone and fax this week, and lawyers put finishing touches on it Thursday, Helmer said. John Karedes wanted to settle for $300,000 and Louis Karedes was willing to settle for $550,000, Helmer said. While not releasing the final amount, Helmer said it's somewhat less than half of the combined $850,000 the two were demanding. The final settlement amount will be released during or immediately after Monday's meeting, Helmer said. Gallagher would not discuss specifics of the settlement or what led up to it. "We're extremely pleased with the settlement and we expect the board will approve," Gallagher said. Village attorney Camille Roach and Trustee Matthew Pasquale declined comment. Colella was out of the office and unavailable. Trustee Joan Hickey Pulse said Thursday she had not heard officially from village attorneys about the settlement. But she did express relief when told of the news. "We can't move forward while we're fighting the past," said Pulse, who is seeking the Democratic nomination to run for mayor this year. Colella is not seeking re-election. was scheduled to start Monday. John Gallagher, the Karedeses' Norristown, Pa., attorney, previously said Louis Karedes was seeking $400,000 in damages. Helmer said he received a letter last Thursday from Gallagher, indicating settlement demands. The two sides worked on the deal by phone and fax this week, and lawyers put finishing touches on it Thursday, Helmer said. John Karedes wanted to settle for $300,000 and Louis Karedes was willing to settle for $550,000, Helmer said. While not releasing the final amount, Helmer said it's somewhat less than half of the combined $850,000 the two were demanding. The final settlement amount will be released during or immediately after Monday's meeting, Helmer said. Gallagher would not discuss specifics of the settlement or what led up to it. "We're extremely pleased with the settlement and we expect the board will approve," Gallagher said. Village attorney Camille Roach and Trustee Matthew Pasquale declined comment. Colella was out of the office and unavailable. Trustee Joan Hickey Pulse said Thursday she had not heard officially from village attorneys about the settlement. But she did express relief when told of the news. "We can't move forward while we're fighting the past," said Pulse, who is seeking the Democratic nomination to run for mayor this year.

THE KAREDES CASE March 1997: Trustees approve a three-year contract with John Karedes, who started working at En-Joie in March 1996. Jan. 23, 2000: Karedes writes to Mayor Michael E. Colella asking to begin negotiations on his contract, which expires on March 15, 2000. March 13, 2000: Trustees approve a new four-year deal with Karedes. Colella refuses to sign it. Dec. 27, 2000: Karedes' attorney, John A. Gallagher, files petition in Broome County state Supreme Court, asking the court to force Colella to sign the deal or declare it valid without his signature. Dec. 28, 2000: Justice Patrick D. Monserrate issues restraining order preventing trustees from terminating Karedes' contract until Monserrate can rule on Gallagher's petition. Jan. 1, 2001: Three new trustees take office, significantly changing the composition of the board. Feb. 15, 2001: Monserrate rules contract is valid without Colella's signature. March 1, 2001: Trustees terminate the contract. Village files appeal of Monserrate's ruling to state Supreme Court's Appellate Division. March 13, 2001: Karedes leaves job. May 13, 2001: Karedes files breach of contract lawsuit in Supreme Court. Karedes asks court to award him at least $200,000 in lost wages and commissions from golf cart rentals. Sept. 7, 2001: Gallagher files a lawsuit in U.S. District Court that alleges breach of contract and political discrimination by the village. It also alleges libel against several local media outlets. Several weeks later, the state Supreme Court action involving the breach of contract is dropped. April 18, 2002: Appellate Division rules Karedes' contract is not valid. April 1, 2003: Court of Appeals hears Karedes' appeal of Appellate Division ruling. May 8, 2003: Court of Appeals rules in favor of Karedes. August 25, 2003: Village trustees approve the terms of the settlement.