The Sackets Harbor Fire Company Inc. may be beset by personal squabbles, but its problems are not severe enough to warrant the dissolution of the corporation, a state Supreme Court judge has ruled.
Judge Hugh A. Gilbert has denied a petition brought by some members of the corporation to dissolve it in an attempt to establish a separate fire company, according to documents filed Thursday at the Jefferson County Clerk's office.
The breakaway members of the corporation's Station 2 sought a court order to dissolve the nonprofit corporation and receive some of its firefighting equipment in an effort to create a separate fire company, at Sulphur Springs, known as the town of Hounsfield Fire Department.
The corporation's board of directors passed a resolution Sept. 27 approving the transfer of assets. The resolution, signed by James L. Lawrence Sr., James L. Lawrence Jr. and Edward L. Mereand, also stated that the corporation is so divided by internal dissension that its dissolution was necessary.
Nineteen members of the corporation brought action Feb. 22 in Supreme Court seeking dissolution. They argued, in part, that because of the dissension, dissolution would be beneficial. The petition also alleged that some directors or "members in control" looted or wasted corporate assets and perpetuated the corporation for personal benefit.
Judge Gilbert disagreed, stating he found no basis for the claim that any of the directors or members ran the corporation for their own gain. He determined, instead, that the corporation is intended to benefit the general public by offering fire services and fire protection.
"If there be a benefit to an individual member it would be the sense of satisfaction in providing such a valuable public service," he wrote. "We likewise find no evidence that the current directors or any members in control, if there be the latter, have otherwise acted in an illegal, oppressive or fraudulent manner."
In referencing "current" directors, Judge Gilbert draws a distinction between the makeup of the board at the time the dissolution petition was filed and now. While the action was pending in court, a new slate of directors was named.
The new board voted 3-2 in April to rescind the September resolution to dissolve the corporation. Judge Gilbert wrote that, based on the resolution's rescission, it appears "there is no viable current request for dissolution by a majority of the directors of the SHFC."
"In other words, as far as the current executives of the SHFC are concerned, it should remain business as usual," the judge said.
James Lawrence Sr., a member of Station 2 for more than 40 years, had not heard about the judge's decision as of Thursday afternoon, but said there are "still options" available to the members looking to form a separate company.
"Right at this time, I can't tell you," he said of the members' next possible move. "Nothing's concrete yet; let's leave it at that."
Board President Mark L. Farrington could not be reached for comment. Sackets Harbor Mayor Michael R. Kinnie said he was "very happy" with the court's decision and that the village board will discuss at its next meeting what steps it needs to take next.
"The fire department is one of the most important, if not the most important, organizations in our community," Mr. Kinnie said. "It's been our view all along that it makes sense economically, and for safety and for efficiency, to keep the fire department together. It is very important that we all work together and that the fire department stays together."
Judge Gilbert's ruling may not end litigation over the fire company's split. The state attorney general's office had brought action to force the removal of five of the company's officers for alleged breach of fiduciary duty.
Judge Gilbert dismissed that action Aug. 18 after ruling that the proper legal documents were not filed by the attorney general, but a spokesman for the attorney general has said the case will be refiled with the appropriate paperwork.