Date: November 15, 2007
Source: News Room
In the ongoing class-action suit against the Connecticut Resources Recovery Authority (CRRA) by its member towns over a loan to former Enron Corp., a state Superior Court judge recently issued a gag order citing "misleading and inflammatory communications." The order is to remain in effect until funds are paid out, including attorneys fees. 70 towns that are members of CRRA's Mid-Connecticut Project sued the agency in February 2006 over CRRA's failed $220 million loan to Enron. On June 19, Judge Dennis G. Eveleigh ordered CRRA to pay those towns $35.8 million. Less than 10 days later, CRRA appealed the ruling. In addition to attorneys' fees, the agency is facing huge costs to close its Hartford landfill next year. The towns are essentially suing themselves as they will ultimately pay the costs through higher fees; however, fees will likely increase to other CRRA member towns across the state. The state has recovered only about two thirds of the $220 million loan to the former Texas-based energy giant.
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