New trial date over $500,000 snub

Borough, its redeveloper partner to face a jury on Dec. 2

Rendering of the Block 419 redevelopment project, with Emerson ambulance superimposed.

EMERSON—The long-awaited trial between Emerson and its downtown redeveloper over a $500,000 payment for deeded property has been postponed to Dec. 2 at 9 a.m. in Superior Court, Hackensack.

Attorneys for Emerson and Emerson Redevelopers Urban Renewal (ERUR) gathered at the Bergen County Courthouse on Nov. 4, ready to begin the jury trial. However, ERUR’s attorney, Joseph Fiorenzo of Sills Cummis & Gross, requested a delay to ensure jury availability for the duration of the trial, expected to take up to three weeks. 

The court granted the request, citing potential scheduling issues due to Election Day and Veterans Day.

Construction appears not to be in progress in April 2024 at the Block 419 Emerson Station project, which is at the heart of lawsuits. John Snyder photo.
Construction appears not to be in progress in April 2024 at the Block 419 Emerson Station project, which is at the heart of lawsuits. John Snyder photo.

Filed nearly 4 1/2 years ago, the case, BER-L-003359-20, has faced numerous delays and complications, including a last-minute request from ERUR’s counsel to be relieved due to non-payment. This request was denied on Oct. 31, and the motion was withdrawn on Nov. 1, solidifying the trial’s new start date.

Borough attorney John McCann previously estimated that the trial could last one to two weeks. Emerson is represented by Brian Giblin of Giblin Gannaio in Oradell.

The lawsuit claims ERUR failed to pay $500,000 for an ambulance property deeded to them by the borough.

The case has seen renewed attention amid reports of financial troubles for ERUR’s principal, Jack Klugmann, owner of Accurate Builders. ERUR faces a $1.4 million lawsuit from an Emerson Station subcontractor over unpaid invoices, an $8 million mortgage foreclosure lawsuit that recently settled in Kenilworth, and approximately $10,000 in unpaid 2023 taxes on 129 Kinderkamack Road, leading to a tax lien sale on Oct. 1.

Jack Klugmann, president and CEO of Accurate Builders in Lakewood, is fighting its client, the Borough of Emerson. Photo via accurate-re.com.

In response to Pascack Press inquiries, Klugmann emailed on Oct. 31, saying, “Sills Cummis is a great firm, and we understand the need for their filing [to seek dropping Klugmann over unpaid invoices, and adjourning the original trial in anticipation of his not having representation.]”

He said, “We’re in the process of a much larger recapitalization. Due to ongoing litigation, our new lender is requiring assurance that we have a viable project and that we’re in the right regarding our lawsuits with the town.”

Klugmann added, “The refinance is taking longer than expected with multiple moving parts. Sills Cummis could not proceed with the trial until we conclude the closing, at which time they would be made whole.” 

He emphasized, “We intend to continue the lawsuits and seek all damages due from the municipality.”

Minutes later, Klugmann noted, “We paid Sills a lot of money a couple weeks ago.”

See also: