Judge rejects Oceanside Sanitation District lawsuit's restraining order

A state Supreme Court justice has rejected a restraining order that was part of a former employee's lawsuit against the Oceanside Sanitation District that sought to stop payments to an ex-supervisor and consultant.

Nassau County Supreme Court Justice Antonio Brandveen rejected the order because it would breach the contract of sanitation consultant Mike Scarlata, who is in the middle of a five-year, $240,000 contract, equaling a $48,000 annual consulting deal, according to court records.

Former sanitation worker Joseph Samoles filed the lawsuit earlier this month on behalf of taxpayers, seeking to recoup more than $800,000 in deferred retirement payments made to Scarlata and his son, Charles Scarlata, when they both retired from the district as supervisors.

Samoles' attorney, Austin Graff, withdrew his request for a restraining order after the judge's order when the district disclosed it was a separate consulting contract and the retirement payments had already been paid in full.

The lawsuit targets the Scarlatas, the district, its former attorney Jack Libert and three sitting district commissioners -- Joe Cibellis, Florence Mensch and Thomas Lanning. The sanitation board held a special meeting in executive session Thursday night to discuss the lawsuit but the board and its attorney did not report any action or comment.

State Comptroller Thomas DiNapoli audited the district last year and said the district should recoup the $800,000 in taxpayer funds that were improperly paid to the Scarlatas as part of their retirement package.

Mike Scarlata, 82, received $391,000 in deferred payments from 1998 to 2013, and Charles Scarlata, 47, received $421,353 from 2012 to 2013, each for agreeing not to retire early.

The district has taken no action to recoup the funds, but voted for its new attorney, Jared Kasschau, to review the comptroller's audit. Sanitation commissioners voted against hiring a special outside counsel.

The board suspended Scarlata from his consulting duties in June, but he is still collecting his monthly salary and still attends meetings as a member of the public.

Graff said he is still pursuing the lawsuit and has until Jan. 6 to amend the complaint. He said he will contend that payments should be stopped because Scarlata's hiring as a consultant bypassed the state's civil service commission.

"I understand the breach of contract, but are we more concerned with the breach or recovery of $800,000?" Graff said.

By John Asbury

john.asbury@newsday.comJohnAsbury

John Asbury is a breaking news and general assignment reporter. He has been with Newsday since 2014 and previously worked at The Press-Enterprise in Riverside, California.