The attorneys for Miami Lakes Mayor Pizzi are asking the town to pay them for the costs of his reinstatement cases before they consider pursing the town’s insurance carrier for the legal expenses from his federal bribery trail.
The latest development of the ongoing attorney’s fees dispute comes three days following the October 6 regular Town Council meeting, when council members took action on fighting two lawsuits brought by the Pizzi and his attorneys who are seeking $3.2 million.
“If the town pays for my reinstatement fees, my attorneys would drop that case and consider suing the insurance company to get the money for the criminal trial expenses,” Pizzi told The Miami Laker during an exclusive interview.
According to a letter written to Miami Lakes by one of Pizzi’s lawyers, David Reiner dated October 9, they are willing to resolve the legal dispute in which the town would first pay them for the legal costs for his reinstatement cases.
They are asking for $653,000 for the reinstatement court cases.
"Once that is done, we agree to meet with you and discuss how we can assist in going after the insurance company to recoup Mayor Pizzi's legal fees in the defense of the criminal action, which he is entitled to under Florida law," Reiner said in the missive.
Facing two lawsuits and the rejection by the insurance company which refuses to cover the mayor’s legal expenses, his attorneys are demanding Miami Lakes pay for his trial cases and the town was forced to hire a law firm to fight the litigation.
As the legal costs pile up for Miami Lakes, the burden may fall on the town’s taxpayers, but Town Attorney Raul Gastesi said the city doesn’t have a choice in an effort to settle the legal costs wrangle.
“We have two lawsuits to defend,” Gastesi told lawmakers at last week’s regular Town Council meeting. “If we don’t, we will default and Pizzi’s team of attorneys will win and we will have to pay $3.2 million.”
Lawmakers, on a 6-0 vote, tapped the Lydecker Diaz Law Firm to represent the town in the lawsuits; Pizzi recused himself from the discussion and the vote citing a conflict of interests.
But he returned for the dialogue of the subsequent town attorney’s report on his litigation against Miami Lakes, as the heated debate reaffirmed the tension between Pizzi and council members since he got his job back in April.
Gastesi said the town’s insurance carrier denied coverage for the legal costs because the criminal case was not a “damaged claim” and one insurer is suing the other.
“They alleged he committed illegal acts and denied coverage,” Gastesi said.
Pizzi said his attorneys should be paid since the town fought against his efforts to be reinstated and bankrolled $460,000 to pay former Mayor Wayne Slaton’s legal fees to keep him in office.
Gastesi said the law firms were hired to defend the town charter, in which a special election was called for residents to pick a new mayor since Pizzi had more than two years left on his term when he was arrested.
Pizzi, however, quoted state law which allows a suspended elected official to return to political office if acquitted of any charges in criminal court.
“The Third District Court of Appeals said the opposite of what you are saying,” Pizzi told Gastesi. “They ruled that the town’s charter was read improperly and the courts mandated my return.”
Following the insurance company’s refusal to cover the mayor’s legal expenses, council members urged Pizzi and his attorneys to seek other alternatives that wouldn’t cost taxpayers.
“Please, I urge you to go against the insurance company and let the residents off the hook,” said Councilmember Frank Mingo. “You say you are not suing the town and residents, and I will not vote to give you one cent of our taxpayers’ money.”
Pizzi said his lawyers are seeking a resolution without any red tape and aggravation.
“I hope we can get past the politics of this issue and let’s focus and resolve this solution, a speedy resolution on a reasonable amount,” he said.
To attenuate the load on the taxpayers, Gastesi said he asked Pizzi’s attorneys to sue the people responsible for bringing him to face justice and the town of Medley.
Pizzi was Medley's town attorney where the federal sting was also conducted by the federal government and two FBI informants, who widened their net to nab Pizzi in a bribery and kick-back scheme that also brought down Sweetwater Mayor Manny Marono in 2013.
“I was told ‘no’ each time,” Gastesi said. “I have made every effort to convince his attorneys to go after the people who were responsible for his indictment.”
Gastesi indicated Pizzi’s team of five lawyers, including Ed Shohat, Ben Kuehne and David Reiner, are each seeking an average of $680 an hour for their work on his criminal trial and reinstatement cases.
He said the criminal trial constitutes the bulk of the legal costs.
“Twenty one percent of the fees are for the reinstatement cases,” said Gastesi.
Gastesi said the Lydecker Diaz Law Firm has three offices with 85 attorneys and ample resources to deal with the two lawsuits simultaneously.
“We need a team with those resources,” Gastesi said.
Council members were reluctant to spend more money on legal fees but must fight the mayor’s litigation in hopes of sparing taxpayers from economic hardship.
“If we could avoid this we would,” said Councilmember Ceasar Mestre. “But we must face reality and the reality is we have a lawsuit filed against Miami Lakes residents. And if we don’t defend it properly, we are going to be writing a check.”
Miami Lakes residents told Councilmember Nelson Rodriguez not to pay for the costs of the mayor’s federal bribery trial. “I asked them how much money to settle for and they said don’t give him anything,” Rodriguez said. “They said it’s a criminal case and that’s my dilemma.”
Councilmember Tony Lama said the $3.2 million in attorney fees is shaking Miami Lakes to its core.
He said more beautification projects may be put on hold and the town could’ve used the legal expenses to fund the senior classes for an entire fiscal year.
“This is having a real impact on the town,” he said. “The added costs is taking away from our residents who just want to enjoy their community.”
Councilmember Tim Daubert summed up his feelings on the legal costs dispute.
“I will not spend one penny of the taxpayers money on the lawsuits,” he said.