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By MICHAEL McNARNEY mmcnarney@leader.net
Tuesday, March 04, 2003 Page: 1A
WILKES-BARRE – Hotelier Tom Torbik says Mayor Tom McGroarty should pay him
more than $1 million because the mayor has damaged his personal and
professional reputation.
In a suit filed in Luzerne County Court of Common Pleas on Monday, Torbik
disputes McGroarty’s claims that he benefited as a hotel partner from a loan
used to help build the hotel.
Torbik also claims in the suit that McGroarty intruded into his private
personal life, making false statements concerning his private life.
The suit contains one count of defamation, one count of false light
invasion of privacy and one count of invasion of privacy, publicity given to
public life. Each count seeks more than $1 million in damages, interest and
costs.
A partner in the Ramada Inn at 20 Public Square, Torbik led City Council’s
appointed investigative committee that has accused the mayor of fumbling the
downtown call center and movie theater projects.
During the course of the probes, McGroarty has criticized Torbik
professionally and personally.
The mayor has alleged the Ramada Inn partner got a gift in regards to a
$1.6 million loan that didn’t have to be repaid.
Of a more personal nature, the suit cites newspaper articles in which the
mayor states: Torbik is not a moral man. “Mr. Torbik should become more of a
family man.” And “I wouldn’t want him to marry my daughter.”
As a result of such statements, Torbik suffered “significant harm to his
personal and professional reputation” and experienced “humiliation,
embarrassment and ridicule, mental anguish, emotional distress,” according to
the suit.
Driving back from the Pennsylvania Department of Transportation’s office in
Dunmore, McGroarty said Monday that anyone can file a lawsuit, adding he has
prevailed in other lawsuits against the city.
However, Torbik’s suit is filed against McGroarty alone. The city is not
named as a defendant.
The suit reads: “This is an action by Tom Torbik to recover compensatory
and punitive damages against Defendant McGroarty in his individual capacity
for false and defamatory statements concerning Plaintiff made by Defendant
McGroarty maliciously and in reckless disregard for the truth, and for the
intentional and malicious invasion of Tom Torbik’s privacy.”
Councilman Tony Thomas Jr. said the suit was another black eye for the
city.
“He (McGroarty) always opens his mouth and doesn’t think before he speaks.
He hurts people and he hurts people’s families,” Thomas said. “When you’re
doing the same thing to him, he cries.”
The mayor didn’t respond in detail to any of Torbik’s claims. When asked on
Monday about bringing his daughter, Jordan McGroarty, into the debate,
McGroarty responded by mentioning Torbik’s family.
“He might not want me to marry his daughter,” McGroarty said. “It’s
America.”
Torbik could not be reached for comment.
Much of the mayor’s criticism of Torbik stems from Torbik’s involvement
with the Ramada Inn, the hotel’s federal financing and the hotel’s
relationship with the neighboring Park N Lock North parking garage.
In 1979, the hotel’s owners got a $1.6 million federal loan, channeled
through City Hall, to build the 200-room structure. As part of the deal, the
hotel didn’t have to repay any of the loan until 1986, and could postpone
payments until 2011 if its “net cash flow is insufficient” to make the
payments.
From 1981 until 2002, according to the lawsuit, just $50,000 was paid on
the loan – something McGroarty has complained about.
The lawsuit states that Torbik was not a party to the terms of the
agreements “since he had no ownership or other interest” in the hotel at the
time “they were negotiated and executed.”
It wasn’t until Nov. 6, 1979 – four days after the loan deal with the city
had been signed – that Torbik became a limited partner in the hotel. And it
wasn’t until July 1989 that Torbik became a controlling partner.
According to the suit:
“McGroarty for personal reasons chose to refuse to cooperate with the
Investigative Committee apparently out of fear of what the committee might
discover in its investigation of the City projects and the City’s finances.”
On or about Sept. 9, 2002, McGroarty issued a “gratuitous and personally
vindictive Memorandum” that contained “false and defamatory statements”
about Torbik.
Among them:
“Wilkes-Barre Inn, Tom Torbik, received a $1.65 million loan in 1979 to
help construct the Ramada Hotel on Public Square.” (“This allegation is
false in that Tom Torbik did not receive any loan and was not a partner in The
Wilkes-Barre Inn at the time the loan was received.”)
“As part of the deal, Mr. Torbik was also given 130 free parking spaces in
Park N Lock North and an option to purchase the garage in the year 2029 for
$1.2 million.” (“Tom Torbik was not given anything for free and did not
receive an option to purchase the garage and he held no interest in The
Wilkes-Barre Inn …”)
The suit also calls false McGroarty’s written statement that appeared in
the Citizens’ Voice on Sept. 10, 2002:
“Mr. Torbik not only resents me because I publicly questioned his failure
to make loan payments to the City, and objected to the deal he got for the
Park N Lock North option, but he also owes a huge favor to my political rivals
on City Council for letting him off the hook and forgiving the loan. … City
Council effectively gave Mr. Torbik a $1.65 million gift from the taxpayers.”
Torbik’s attorney, Donald H. Brobst, practices law at Rosenn, Jenkins &
Greenwald.
Councilman Tom Leighton, who is running for mayor, said Torbik isn’t the
first person to talk about suing McGroarty for something the mayor allegedly
said – but is apparently the first person to do so.
Leighton said he would oppose any efforts by McGroarty to use city staff or
resources in his defense.
“He can’t utilize city resources if the city’s not part of the lawsuit,”
Leighton said. “It sounds like he’s on his own.”
Michael McNarney, a Times Leader staff writer, may be reached at 831-7305.