To All Delegates and Members

October 10, 2000

UPDATE RE: “SECTION 1127" LAWSUIT

On May 12, 2000, we reported to you that New York Supreme Court Judge Stanley L. Sklar had granted the PBA’s Motion to Intervene on behalf of the non petitioners in the case of Ganley et. al. v. Guiliani et. al. (i.e., the “Section 1127" case involving former members of the New York City Transit and Housing Police Departments). Since our last report, in or about July 2000, Judge Sklar directed the intervenors to file petitions in the case.  Subsequently, the parties entered into settlement discussions.

Over the past few months, the PBA has discussed the parameters of a possible settlement with the City. Specifically, the City introduced the possibility of settling the case under the following conditions: (1) payment of all monies withheld from the date of the merger; (2) two years of “simple interest” (i.e., not compounded); (3) payment within sixty-days of executed agreement; and (4) executed agreements between the City and all intervenors. Upon receipt of the City’s tentative offer, the PBA polled the membership regarding the offer and discovered that there was overwhelming interest in settling the case in accordance with the above listed terms.

In mid-September, the PBA, in an effort to discuss formally our position regarding settlement, contacted the Corporation Counsel’s office and pressed them on their offer. When asked by the PBA to provide a timetable for settlement, Corporation Counsel refused to agree to any timetable and indicated that we should go to court, where we potentially could receive zero interest. No further discussions with the City have taken place.]

With settlement discussions apparently at a standstill, the PBA has decided to file its Petition and Motion for Summary Judgment. Based on our reading of the Court of Appeals decision, there are no factual issues to be decided and the intervenors are entitled to judgment as a matter of law. Therefore, a Motion for Summary Judgment is the most expedient mechanism available to resolve the matter.

We appreciate your continued support and patience and understand your frustrations. In addition, we recognize that rumors and misinformation have exacerbated the situation. Accordingly, we implore you to listen to updates from your Trustees and disregard reports from the misinformed.

Fraternally,

Patrick J. Lynch
President