EMERSON—A former grant writing consultant hired in 2016 and again in 2017 on a six-month contract has filed a lawsuit against Emerson to recoup a percentage of nearly $1 million in grants that the borough was awarded following the consultant’s terms of service.
The lawsuit, filed on behalf of Capital Alternatives Corporation, Oradell, complains over breach of contract; breach of the Covenant of Good Faith and Fair Dealing; and unjust enrichment. The court case has been assigned to Superior Court Judge Robert M. Vinci.
The borough’s attorney, John McCann, retained by the borough to negotiate with the former consultant, claims that both grants were awarded in years following the consultant’s two contracts and not during its contracted periods of employment.
He said both claims were without merit as both grant writing contract periods had expired.
McCann said he would likely file a motion to dismiss the claims in Superior Court.
On March 15, the Borough Council approved a resolution that hired McCann to undertake negotiations with Capital Alternatives Corporation over its lawsuit.
Based on fee percentages claimed in the lawsuit that state 10% on the first $500,000 of grant funds awarded and 8% of any amount that exceeds $500,000, it appears the consultant believes it is owed approximately $86,900 in fees that were not reimbursed.
(We estimated the amount based on the consultant’s stated fees although no total amount is specified in the lawsuit.)
Filed in Superior Court in mid-January by Shafron Law Group LLC, Hackensack, the lawsuit seeks fees on two grants — one a federal transportation grant for $780,000 and one a state transportation grant for $145,000 for the Vivian Avenue Drainage Project — that amounted to a total of $925,000 for Emerson.
According to the suit, the $780,000 federal Department of Transportation (TAP) Transportation Alternatives Program grant awarded in 2018 was similar to a grant prepared by the consultant in 2016 that was not funded by the federal agency.
When the borough reapplied in 2018 using parts of the original grant application, they were awarded a grant. That original application (non-funded) was claimed to be for Parts II and III of the Emerson Downtown Redevelopment Project.
We asked how those funds were used but did not hear back by press time.
The second grant — also received in 2018 — was for $145,000 and was received the year following a short-term hiring of the grant consultant in 2017.