Toole-linked case appeal withdrawn

WILKES-BARRE – An attorney for an insurance company that sought to overturn a $1.2 million arbitration award that was reportedly the basis of corruption charges against former judge Michael Toole has filed court documents terminating the case.

Michael Blazick, attorney for Erie Insurance Exchange, filed a document in Luzerne County Court on May 3 that discontinues the case against Richard Gazenski of Wilkes-Barre. The document does not indicate if the case was terminated because a settlement was reached or the insurer decided to drop the matter, however.

Erie filed a petition in January that sought to overturn a Dec. 18, 2007 arbitration award issued to Gazenski, arguing it was the product of fraud, corruption and misconduct. The petition was based on Toole’s guilty plea in December to charges relating to his handling of an uninsured motorist insurance arbitration claim.

Uninsured motorist arbitrations involve persons who seek to recover money from their own insurance company for injuries caused by another driver who had little or no insurance. Disputes over the amount of money due are settled by a panel of three arbitrators – one appointed by the plaintiff, one by the defense and a third, neutral arbitrator.

Federal prosecutors alleged Toole, through an intermediary, improperly communicated with an attorney to ascertain whom that attorney wished to have appointed as the neutral arbitrator. Toole, who had enjoyed free use of that attorney’s beach house, then appointed that person.

Prosecutors did not identify the attorney or case in question, but details contained in the criminal complaint led The Times Leader and other media outlets to identify the attorney involved as Harry Cardoni and the case as Gazenski’s.

Erie relied on those media reports in the petition to vacate the arbitration award. The petition alleged the selection of the neutral arbitrator was tainted, calling into question the fairness of the proceedings.

The court document filed by Blazick that ended the case is a generic form utilized by attorneys to discontinue a case for a variety of reasons. It does not indicate whether the case was settled out of court, or whether it was withdrawn for some other reason.

Neither Blazick nor his co-counsel for Erie, David Laigaie of Philadelphia, returned a phone message Tuesday seeking clarification.

Gazenski’s attorney, William Shehwen of West Chester, said he could not comment on the case other than to reiterate Gazenski was never accused of any wrongdoing.

In a previous interview, Shehwen questioned the strength of Erie’s case, noting that there was no proof that the Gazenski case was the basis of the charges against Toole, other than media reports that linked the two cases.