TimesLeader.com

Mediator to review W-B case

At issue is how much the city must pay for terminating Bob Kadluboski’s towing contract.

By Terrie Morgan-Besecker tmorgan@timesleader.com
Law & Order Reporter

WILKES-BARRE – Attorneys for the city and tow truck operator Bob Kadluboski are scheduled to meet with a mediator next month to try to reach a settlement regarding how much the city must pay Kadluboski for terminating his towing contract.

Kadluboski’s attorney, Bruce Phillips, has demanded $450,000, which would cover Kadluboski’s lost earnings as well as compensatory damages and attorneys fees. The figure is based in part on an economics expert’s report that determined Kadluboski lost $263,198 in gross receipts after the city terminated his contract in 2004.

An economic expert hired by the city disputes those earnings figures, pegging Kadluboski’s loss at $140,300, according to a copy of the report included in a court filing. That figure does not include potential compensatory damages a jury might award or attorneys fees that would be due Phillips.

U.S. District Judge James Munley on Monday issued an order directing both sides to meet with Magistrate Judge Thomas M. Blewitt on Jan. 13 to try to reach a settlement of the dispute.

In September, Munley ruled the city had violated Kadluboski’s right to due process when it terminated his contract without providing him a hearing to respond to criticisms of his performance.

Kadluboski, owner of City Wide Towing, had held the exclusive contract to tow vehicles – such as those involved in car crashes – that city officials ordered to be removed. The city terminated his services in 2004 after receiving numerous complaints, including that he was discourteous.

In his ruling, Munley said the city violated Kadluboski’s rights because it did not permit him to attend a hearing at which complaints about him were discussed. The city maintained Kadluboski was not entitled to due process rights because his contract stated it could be terminated by the city.

Munley’s ruling disposed of the factual issues, but did not address the amount of money Kadluboski is owed. That issue is to be decided by a jury at a separate hearing. If the mediation is successful, that hearing would not be held.

The city also has a motion pending before Munley, seeking his permission to appeal his ruling in favor of Kadluboski to the Third Circuit Court of Appeals. The city must seek the judge’s permission to appeal because his ruling was not considered a final ruling that ends the case.