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Millcreek School Board approves $5,000 retainer to pursue $75,750 judgment against Cornerstone Technologies
Summary
The Millcreek Township School District won a $75,750 default judgment in federal court against Cornerstone Technologies Inc. and its owner; the board approved a $5,000 retainer to Georgia counsel to attempt to enforce the judgment where the company is located.
The Millcreek Township School District board voted to approve a $5,000 retainer to Georgia counsel to pursue enforcement of a $75,750 federal default judgment against Cornerstone Technologies Inc. and owner Bruce Mansour.
The judgment stems from the district's sale of technology equipment to Cornerstone, which the district says defaulted on payment. Solicitor and finance staff told the board they had attempted to contact the company about settlement but received no response. Because the company operates in Georgia, the board was advised the district must file the Pennsylvania judgment in Georgia before collection actions can proceed.
Solicitor materials attached to the agenda recommended retention of local counsel in Georgia. The board moved and approved a resolution authorizing the retainer agreement and the $5,000 payment for the firm identified in the packet. The roll call showed the motion carried with one dissent recorded during the committee vote (Vince cast a nay during finance committee discussion) and the board later approved the resolution at the regular meeting (vote recorded as aye with Vince nay).
Board members and staff noted practical limits to collection: after the judgment is registered in Georgia, collection tools available there would determine whether assets could be levied. The solicitor said contingency-fee representation was unlikely given the company's history and the size of the judgment, and recommended the retainer as the necessary next step.
Finance staff and an IT staff member explained the district's process for disposing of surplus technology: the district solicited bids and accepted the higher bid from Cornerstone to recycle the equipment. The district said it considered donation and other options but policy and the School Code require attempts to sell assets that carry value. The district will file the Pennsylvania judgment in Georgia and engage the Georgia firm to attempt to execute on the judgment.
The board's action authorizes the district to proceed with the next phase of collection efforts but does not guarantee recovery of the full judgment amount.
The matter was identified as litigation discussed in executive session earlier in the evening; the board placed the retainer resolution on the regular meeting agenda and approved it there.
