LAGRANGE – The legal battle involving the Town of LaGrange, (MHCM), and several other parties, including former LaGrange Town Councilman Al Rabasco and his business, Rabco Construction, has undergone a dramatic shift following a special meeting of the LaGrange Town Board on Monday afternoon. All parties, except Rabasco, have reached a settlement, putting an end to the litigation. MHCM is continuing its lawsuit against defendants Rabasco and Rabco Construction.
Originally, the Town of LaGrange sued MHCM, which was the contractor hired by the town to construct a new salt storage shed at the town’s highway department. MHCM was required by the town board, including then-Councilman Rabasco, to use plans and drawings provided by Lester Building Systems. MHCM complied and also used materials designed and manufactured by Lester, a Minnesota-based company. The local authorized dealer for Lester is Rabco Construction, owned by Rabasco.
The salt shed was completed in the first quarter of 2022. In April 2022, a warranty issue arose, and the lawsuit alleges that Rabasco failed to correct it, leaving the town with a building without a warranty. According to Ken Stenger, the lawyer for MHCM, Rabasco, a councilman at the time, had encouraged the majority of the town board not to pursue the warranty claim with Lester, but instead to sue MHCM. As a result, the town refused to pay MHCM and filed suit. MHCM then filed suit against Lester Building Systems, Al Rabasco, and his company, Rabco Construction.
The agreement says in part, “The Town of LaGrange shall release every defendant and third-party defendant, except Al Rabasco and Rabco Construction Corp.” The town agreed to pay MHCM $200,000, which is the balance due to the contractor. Day & Stokosa Engineering is paying the town $175,000, and Lester Building Systems is paying MHCM $35,000.
At Monday’s meeting, Town Attorney Shane Egan explained the settlement agreement to the council members, saying, I believe it (the settlement) to be in the best interest of the town, considering all of the factors and the amount of money the town has been spending on this litigation.” The town board unanimously agreed and approved it.
The town’s approval of the settlement has reduced the lawsuit to one between MHCM and Rabasco and his company, Rabco, which could go to trial in December.
MHCM attorney Ken Stenger on Monday night told Mid-Hudson News, “All of the parties involved in the construction of the Town of Lagrange salt shed have set aside their differences to settle this three-year-old controversy, with the exception of former Councilman Al Rabasco. Based on the evidence discovered during this process, my client believes that Mr. Rabasco used his political position to prevent this matter from being settled solely for personal reasons. The case continues against him and will go to trial in December.”
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