By Dawn De Busk

Staff Writer

NAPLES — The mediation deadline was moved six months later, putting on hold for another half year the process for the Town of Naples to have a letter of credit honored.

The letter of credit is the promised funding to cover the cost of the remaining infrastructure work for a subdivision referred to as Brandy Pond Crossing.

The mediation deadline was moved from June 30 to Dec. 30, according to Naples Town Manager John Hawley. 

“The June 30 date has come and gone, and no mediation between the town’s attorney or Coastal Realty’s attorney took place. I received notification on June 30 that our attorney filed a motion for continuance, moving the deadline from June 30 to Dec. 30,” he said. 

Bankruptcy Attorney Bruce Hochman, of Eaton Peabody, is representing the Town of Naples. He communicated with Hawley on June 30, and again this week. 

“I had to file another extension to avoid having the court potentially issue an order for not complying with the previous order. I did so merely to extend the time in which medication needs to occur. As we have discussed, mediation is not likely to resolve our dispute so I am ‘kicking the can down the road’ while I wait on Chris Branson to resolve his client’s claim with the developer,” Hochman wrote on June 30.

Lawyer Branson “is negotiating with Jeff Bennett who represents the developer, Paul Hollis. If you know either Jeff or Paul, you know that is tough sledding,” the town’s lawyer said.

Hochman phoned Branson on June 29 “to see where things stand but he was out of the office. Thus, I filed the motion seeking more time,” he said.    

On Monday, Hochman e-mailed Hawley, saying, “I have been waiting on the promised call from Chris Branson, but it has not yet arrived.”

“Yes, the delay is because Coastal and Hollis have not been able to resolve their disputes,” he said.

“As you may recall, the issue was that we could not hand-deliver the Irrevocable Letter of Credit ‘in hand’ due to COVID. Chris Branson has not denied that the ILOC is valid or served. He is claiming they have no money to pay it. I will press Chris to stipulate to judgment since there is no defense,” Hochman said. 

“The waiting has been in order to hopefully have Coastal have funds to pay,” he said.

Hawley updated the Naples Board of Selectmen on the legal issues stemming from the incompletion of the subdivision.

“As you can see, the delay is because Coastal and Hollis are not able to resolve their dispute,” he said. “We don’t have a fight in this game because we weren’t partners. We have to go after the developer — depending on who is responsible.”