Freehold Township settles litigation with utility, residential developer


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FREEHOLD TOWNSHIP — Municipal officials in Freehold Township have authorized a settlement agreement regarding the payment of electrical services at the Freehold Pointe residential development.

On Nov. 22, members of the Township Committee authorized the settlement of litigation in a matter involving Freehold Township, Jersey Central Power and Light (JCP&L) and Centex Homes, LLC.

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Centex Homes is the developer of Freehold Pointe, East Freehold Road, according to a resolution. Electric service at the homes in the development is provided by JCP&L.

In 2004, Centex Homes entered into a developer’s agreement with Freehold Township regarding its obligations at Freehold Pointe, including streetlights, according to the resolution.

In January, JCP&L filed a complaint against Centex Homes in state Superior Court for the non-payment of electric service related to Freehold Pointe. According to the complaint, Centex Homes owed JCP&L $20,832 and the utility company was seeking a judgment in that amount.

In September, in response to the JCP&L lawsuit, Centex Homes filed a third party complaint against Freehold Township in which it alleged the township was responsible for the payment of the electric service.

The third party complaint asserted JCP&L’s utility bills were entirely related to the streetlights at Freehold Pointe and, under the terms of the developer’s agreement, Freehold Township was responsible for the payment of all streetlights at Freehold Pointe.

The complaint alleged Freehold Township breached the developer’s agreement by not paying for the electric service.

According to the Township Committee’s resolution, representatives of Freehold Township, JCP&L and Centex Homes wanted to settle the dispute among themselves to avoid the time and expense of further litigation.

Under the terms of the settlement, Freehold Township will pay $5,000 to JCP&L and Centex Homes will pay $10,000 to JCP&L in exchange for a full and mutual release of any and all claims associated with the provision and payment of electrical utility services for the Freehold Pointe development, according to the resolution.

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