🔒Former executive director sues CT Port Authority

Evan Matthews, who resigned as executive director of the Connecticut Port Authority in October 2019, has filed a federal lawsuit against the agency claiming it breached his contract when it did not indemnify him against accusations that eventually led to his resignation. A Rhode Island resident, Matthews’ lawsuit was filed in U.S. District Court for the District of Connecticut on July 11 by his attorney, Robert J. Sullivan Jr. of Bridgeport. The lawsuit names the Connecticut Port Authority as the only defendant. Sullivan did not respond to a request for comment. The authority, a quasi-public agency, hired Matthews as executive director in August 2016. A document included with the lawsuit states that he would receive a salary of $150,000, be eligible for a bonus of an unspecified amount and be reimbursed up to $15,000 for moving expenses. As executive director, one of his responsibilities was to oversee the “then-$93 million redevelopment of New London’s State Pier,” the lawsuit states. While the pier project was ongoing, the complaint continues, “an individual who, by his own admission, had been financially unsuccessful and needed a source of income” approached the authority and proposed an idea to participate in the project that would benefit him financially. The individual, who is identified in documents submitted with the lawsuit as Kevin Blacker of the Noank section of Groton, became disgruntled when the agency “did not express interest” in his proposal, according to court records. Blacker subsequently “began a campaign of disparagement of the CPA, the pier project and plaintiff,” the lawsuit claims, adding that Blacker’s criticisms were published by “certain media outlets.” The result was “a significant political spectacle of scandal with respect to the pier project,” it states. The authority, located in Old Saybrook, was criticized for its purchasing practices and faced both state and federal investigations of its operations, staff and board members. It has also been criticized for the ballooning cost of redeveloping the State Pier into an offshore wind hub, which saw the initial budget of $93 million grow to more than $300 million. Matthews’ lawsuit states that as the criticisms against him grew, “an illusion of … cost overruns, financial irresponsibility, corruption, impropriety, and self-dealing in pursuit of the project was created and targeted particularly” at him. The lawsuit claims the “accusations and insinuations” directed at Matthews were without merit, but due to “intensified” media coverage and growing public criticism, the authority placed Matthews on administrative leave on July 12, 2019. “The highly publicized removal of (Matthews) from his position as executive director of the CPA scapegoated him, unfairly cloaking him with the stain of wrongdoing,” the lawsuit states. The suit notes that Matthews was required to respond to two sets of discovery subpoenas issued by the state Office of the Attorney General; was “subjected to an interview with the (FBI)”; and was compelled to both respond to a complaint filed against him by the Office of State Ethics; and to testify before the state legislature’s Transportation Committee. As a result, the suit states, Matthews hired legal counsel to assist him, incurring “fees and costs” exceeding $75,000. The lawsuit states the authority’s bylaws include a section entitled “Indemnification” that “requires indemnification of … officers and employees subjected to such proceedings, whether threatened, investigative or actually filed.” The bylaws also state that any authority officer who successfully defends against a legal action or related claim will be reimbursed for reasonable expenses, including attorneys’ fees. A separate section allows the authority to buy insurance to indemnify officers and employees. The lawsuit states that Matthews, through his attorney, issued a demand to the authority seeking “indemnification of his attorneys fees and expenses” on May 11, 2022. The authority rejected that demand. On March 23, 2023, Matthews became aware “of the potential processing of (his) indemnification claim for payment” by the authority’s insurance carrier, the lawsuit states. Months of correspondence between Matthews and the carrier followed through July 11, 2024, the suit states, adding that Matthews “was led to believe that certain indemnification payment(s)” were going to be made by the carrier. “To date, no such payments have been made,” the lawsuit states. It adds that the state Attorney General has announced the formal closing of its investigations, and Matthews “was not found liable for any wrongdoing.” Neither state Attorney General William Tong nor the Connecticut Port Authority responded to requests for comment. The lawsuit accuses the authority of breach of contract for failing to indemnify Matthews and to hold him harmless by paying his attorneys’ fees and expenses. It cites damages in excess of $75,000. The suit also accuses the authority of breach of the implied covenant of good faith and fair dealing. The lawsuit seeks damages in an amount exceeding $75,000 plus interest for the legal expenses, as well compensatory damages and “such other and further relief as the court deems just and proper.” The lawsuit seeks a jury trial.