EMERSON, N.J.—A federal lawsuit filed against Emerson and Mayor Danielle DiPaola by Emerson Redevelopers Urban Renewal (ERUR), alleging the borough caused delays that raised project costs and stalled affordable housing, was dismissed April 22 by a U.S. District Court judge on summary judgment, the mayor announced at the April 22 council meeting.
“We are happy with the outcome,” Mayor DiPaola said, noting that the case was dismissed—“which is good news.” She told Pascack Press, “This is a clear win for the borough. We couldn’t be happier with the judge’s decision to throw out the case. It shows how frivolous the case was from the very beginning.”
The summary judgment in Emerson’s favor means the judge found that none of ERUR’s allegations against the borough or DiPaola met the legal standard to proceed.
The news of the victory in the five-year-old suit was shared in a brief, minute-long announcement at the 28-minute mark of the council meeting. DiPaola also noted the ruling in her “Mayor DiPaola’s Meeting Report” summary of the April 22 session. Officials said the redeveloper has 28 days to respond to the judge’s findings.
Borough Attorney John McCann did not comment publicly at the meeting but told Pascack Press on April 29, “This is a major win not just for the taxpayers, but for the mayor herself. The redeveloper’s case was frivolous, but the punishment was putting her [DiPaola] through the process, and she took the slings and arrows for the town.”
He added, “None of the [ERUR] allegations were true. This was done by the redeveloper and really speaks to the incompetence of the previous [mayor/council] administration. They didn’t vet the redeveloper, and that has caused nothing but ongoing problems for us to deal with.”
McCann emphasized that the federal court decision does not affect the borough’s ongoing case in state Superior Court, where Emerson is suing ERUR to recoup $500,000 the redeveloper promised in exchange for the deed to the borough’s ambulance property. ERUR later reneged on payment after Emerson missed a Dec. 31, 2019, deadline to submit plans, permits, and a potential site for the project.
McCann said the council may discuss the stalled Citizen Emerson Station development at its next meeting, noting the lack of visible progress at the site.
Asked about the project’s status, he said, “We are going to defend the taxpayers’ interests, and everything is on the table—including condemnation.”
The Borough Council voted on Nov. 12, 2024, to authorize McCann to file a breach of contract lawsuit. He said any future legal action may include a condemnation filing, pending mayor and council approval. The borough is planning to inspect the site to assess progress, permits, and the current state of construction.
In November, McCann said a new legal complaint against ERUR would focus on its alleged failure to meet contractual obligations, including submitting monthly progress reports and required documentation.
He noted the Citizen Emerson Station site, which was to include 147 apartments and 14,000 square feet of ground-level retail, has significantly increased in potential value since the project’s inception nearly six years ago.
Officials said that after a state Superior Court trial that began in December 2024 was postponed, local leaders have been awaiting guidance or a decision from retired judge Harry Carroll. The nearly five-year-old case—focused on the $500,000 in allegedly unpaid construction services—continues slowly through court negotiations and back-channel discussions with the redeveloper.
“We’re [mayor and council] going to be taking action very soon,” McCann said, noting that while the council authorized legal action last November, ongoing negotiations have so far delayed the filing.
Although a condemnation lawsuit remains a possibility, McCann acknowledged that it would be a costly process. The council has yet to formally discuss that option.