Schnirman wants his $53,000 back

                                                                                   

Nassau Comptroller Jack Schnirman

After a state court judge refused to dismiss a $1.5 million lawsuit filed by the City of Long Beach against Nassau Comptroller Jack Schnirman, the former city manager is now going with the principle that the best defense is a good offense.

While the city alleges Schnirman committed fraud, conspiracy and breach of duty when he approved excessive severance and other payments to city hall insiders, including himself,  Schnirman countered in court papers last month that it wasn't his fault.

He laid the blame squarely on the shoulders of former City Attorney Rob Agostisi, who is also being sued by the city, and the city council itself.

As city manager, Schnirman contends, he relied on Corporation Counsel Agostisi's advice as well as past practices before approving the payments.

Schnirman, a Democrat,  served as Long Beach City Manager from Jan. 2012 through Dec. 2017. He took office as Nassau's elected comptroller in Jan. 2018, after receiving $108,000 in separation pay from the city.

A state comptroller's audit released in August, 2019 -- after angry citizens complained about the payments -- found Schnirman had approved $6 million in separation payments to 43 city officers and employees without city council approval. The total included $513,925 in payments to ten individuals over limits set in the city code.

It also found that Schnirman, without authorization, approved $229,494 in payments for unused leave to eight officers and employees who continued working -- including $128,457 to Agostisi.

And it concluded that Schnirman received nearly $53,000 more than allowed under the city charter, city code and his own employment contract.

Schnirman returned $52,780, after saying he had depended upon staff to calculate his separation payment. He never signed his termination pay sheets. 

In his court papers, Schnirman alleges that the City Council, despite being warned over the years by the state comptroller,  never acted to change how city officials determined payouts and never took action to restrict the city manager from paying more in benefits than stipulated in the city code.

Now, he said, the city seeks to make him "the scapegoat for the malfeasance, acts and omissions" of the city council.

Schnirman also contends that his City Council-approved employment contract granted him indemnification from any legal action, "groundless or otherwise" and wants the city to pay his legal fees and other costs. Indemnification basically offers protection from liability.

If the court agrees, he said, he wants the $52,780 he paid to the city returned to him, with interest from Sept. 2019.

The city's outside lawyer, John Gross, responded two weeks ago that Schnirman is not entitled to any compensation and is "barred by the doctrine of unclean hands."

Schnirman and Agostisi's cases were moved to Suffolk and are being heard by State Supreme Court Justice Joseph Santorelli.

Santorelli in July refused Schnirman's request to dismiss Long Beach's claims of breach of fiduciary duty, fraud, conspiracy to commit fraud and constructive fraud. He did deny the city's demand for an accounting and dismissed any claims for payments made to Schnirman before July 17, 2014, writing those "are barred by the six year statute of limitations."

Schnirman is represented by Richard Dolan of the Manhattan law firm of Schlam, Stone & Dolan.

Schnirman is not running for re-election this fall.