Final Approval of $10M Settlement Over Delinquent Scranton Garbage Fees Confirmed
The class-action lawsuit against the City of Scranton, Pennsylvania, regarding garbage fees has reached a significant milestone. On Thursday, Lackawanna County Court Judge James Gibbons granted final approval for a $10 million settlement that resolves the dispute over these fees.
The lawsuit, initially filed in 2019 by plaintiffs Mark Schraner and Mari Carr, challenged the penalties imposed on Scranton residents who were either late or failed to pay the city’s garbage fees for specific years. Judge Gibbons had previously given preliminary approval to the settlement in April, and the recent hearing was convened to address any objections. Remarkably, no formal objections were raised before the hearing, and no individuals came forward during the hearing to contest the settlement.
During the hearing, plaintiffs’ attorney Patrick Howard, based in Philadelphia, expressed confidence in the fairness of the settlement for the affected class of plaintiffs, stating, “We’re all here in agreement that this settlement should be approved.” Judge Gibbons echoed this sentiment, commending the handling of the case by both legal teams, remarking, “This was handled very well by counsel on both sides.”
Under the terms of the settlement
The City of Scranton has agreed to disburse $2.5 million to refund approximately 70% of the penalties, fees, and interest incurred by residents who paid overdue garbage fees between September 12, 2016, and December 31, 2020. Additionally, the city has committed to forgiving $7.5 million in penalties, interest, and costs associated with municipal liens placed on property owners who failed to pay their delinquent fees between September 12, 2012, and December 31, 2020.
The settlement also includes provisions for legal expenses, with $833,250 allocated for plaintiffs’ attorney fees and $7,725.69 to cover litigation costs.
In a separate but related lawsuit filed in 2016 by Adam Guiffrida, who challenged the city’s annual $300 garbage fee as excessive, Judge Gibbons held an additional hearing. In this case, the proposed settlement involves the city depositing $405,000 into a settlement fund, of which $385,000 will be earmarked for partial refunds to approximately 5,900 residents who participated in the lawsuit and paid garbage fees from 2014 to 2018.
The city will also contribute an extra $20,000 to cover administrative expenses related to the fund. For their legal representation, attorneys Patrick Howard and Moosic attorney Paul Batyko, who jointly represented Guiffrida, are seeking $115,500 in attorney’s fees and $110,083.32 in costs.
These settlements mark important resolutions in the ongoing legal disputes surrounding Scranton’s garbage fees, providing financial relief to affected residents and addressing long-standing concerns over fee assessments.