PennLive reported a federal judge ruled against the Harrisburg Authority in its multimillion dollar battle against CIT Capital in U.S. Middle Court related to the city's botched incinerator refit project.
According to the report, the authority and Dauphin County sued CIT Capital in an attempt to kill a $25 million borrowing secured for the incinerator project in 2006. The authority and the county claimed the deal was never properly approved as the deal was never brought before city council despite being sanctioned by Harrisburg’s former, Mayor Stephen R. Reed.
CIT counter-sued, claiming a breach of contract. In his decision, Judge John E. Jones III found that the authority is obligated to pay CIT and he issued a $19.3 million judgment in CIT's favor. Jones concluded there was no illegal activity involved in the CIT transaction, according to the report.