By Hank Russell
The Town of Riverhead received a decision rendered by Suffolk County Supreme Court Justice David Reilly regarding the lawsuit commenced by Calverton Aviation Technology (CAT) over the town’s decision to terminate the contract of sale with CAT for the sale of 1,643 acres at the former Grumman Property, also known as EPCAL (Enterprise Park at Calverton).
Reilly granted the town’s motion to dismiss 16 of 17 claims advanced by CAT against the town and the Riverhead Industrial Development Agency, including all claims for breach of contract and all claims involving allegations of fraud.
According to The East End Beacon, the town board terminated the $40 million sale of the 1,643-acre property to CAT in 2022, claiming the company was not qualified and eligible to develop the land. In January 2024, CAT sued Riverhead, claiming that the town “engaged in a scheme to evade Riverhead’s binding contractual obligation” and demanding that the town honor the contract.
The outlet further reported that CAT improperly influenced the IDA to “falsely find that CAT lacked such qualifications.” The IDA claimed that CAT lacked specifics in terms of how the project would be funded and what uses would be allowed, as well as how many people would be employed and what the environmental impacts would be.
“This is a WIN for the Riverhead taxpayers!” Supervisor Jerry Halpin said. “The 1,643-acre EPCAL property belongs to the Riverhead taxpayers and is literally our most valuable real estate asset. I look forward to exploring all ideas — big and small — and hearing from taxpayers about what they think would be the best fit for the future of EPCAL.”
Glenn Gruder, Jarrett Behar and Rebecca Sklar from Certilman Balin represented the town in this case.
“I am very pleased that the Court eliminated CAT’s poorly constructed claims and want to thank [the attorneys] from Certilman Balin for their extraordinary efforts and advocacy in representing the town in this case,” Town Attorney Erik Howard said. “Although one of CAT’s 17 claims survived the motion to dismiss, dismissal of the other 16 claims substantially limits the path to any of the relief sought by CAT. I look forward to further defending the town on the sole remaining claim and hope to achieve a swift resolution.”
CAT has the option to appeal the decision and must exercise that right within 30 days after the town formally serves the judge’s order to the company
Long Island Life & Politics has reached out to CAT and is waiting to hear back.