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Silver Golub & Teitell served as court-appointed lead counsel in a certified class action for 70 Connecticut municipalities to recover for losses sustained as a result of a quasi-public trash authority’s improper dealings with Enron Corporation. The plaintiffs alleged they suffered damages in the form of increased costs when Enron defaulted on a $220 million loan made by the Connecticut Resources Recovery Authority (“CRRA”) to Enron.

Plaintiffs’ complaint alleged that the CRRA’s loan to Enron was illegaland that the expenditure of funds was an ultra vires act on the part of the CRRA. Plaintiffs further alleged, inter alia, that that CRRA breached a fiduciary duty which it owed to the municipalities, and that CRRA breached its duty of fair dealing and good faith. SGT’s prosecution of the matter on behalf of the class resulted in a judgment of over $40 million after trial (believed to be largest award ever rendered and upheld in Connecticut against a public entity).

The case was Town of New Hartford, et al v. Connecticut Resources Recovery Authority, No. UWY-CV-04-0185580S and was brought in Connecticut Superior Court, Judicial District of Waterbury before Hon. Dennis G. Eveleigh.

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David S. Golub


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