Scranton residents affected by delinquent garbage fee settlement to get notices in May

Apr. 10—SCRANTON — Notices about a proposed class-action lawsuit settlement that will refund or forgive most of the penalties and interest charged on delinquent garbage fees will most likely be mailed to affected Scranton residents next month.

Lackawanna County Judge James Gibbons met Monday with lawyers involved in the case to review the terms of the estimated $10 million settlement, which would resolve a 2018 suit filed against the city and Northeast Revenue Service, its former collection agency.

Gibbons indicated the court will schedule a hearing, probably in late August, to grant final approval of the settlement.

The lawsuit filed by city residents Mark Schraner and Mari Carr alleged the penalties, interest and costs assessed on delinquent trash fees were more than allowed by state law.

Under the proposed settlement, all residents who paid penalties, interest and costs issued against delinquent accounts between Sept. 12, 2016, and Dec. 31, 2020, would receive a "pro rata" refund of about 70% of those expenditures.

The city will earmark $2.5 million for refunds.

In addition, the city will forgive an estimated $7.5 million in penalties, interest and costs tacked onto municipal liens filed against property owners for trash fee delinquencies between Sept. 12, 2012, and Dec. 31, 2020. That will leave them responsible only for the accrued refuse fees.

Philadelphia attorney Patrick Howard, who brought the complaint on behalf of Schraner, Carr and other class members, told Gibbons the plan is to send postcards to affected city residents in May, notifying them of the settlement and giving them the option to opt out or object to the deal.

If they want to participate in the settlement, residents don't have to do anything more, he said.

The settlement will also be advertised in The Times-Tribune and The Citizens' Voice, and there will be a website with information, he said.

After Gibbons noted some residents may not have access to the internet, Howard said the postcard will contain a telephone number people may call.

Both Howard and attorney Gregory Graham, who represented the city and participated in Monday's hearing by telephone, told Gibbons they do not anticipate many objections to the settlement.

"We think this has been squared away quite well," Graham said.

The deal is separate from a proposed settlement reached in a second class-action lawsuit filed in 2016, by Adam Guiffrida that challenged Scranton's $300 annual garbage fee.

Under a tentative $385,000 settlement filed last week in the Guiffrida suit, more than 5,900 city residents would receive a partial refund of trash collection fees paid from 2014 to 2018.

Gibbons has scheduled a hearing April 21 to review the terms of that deal.

Contact the writer: dsingleton@timesshamrock.com, 570-348-9132