Council approves $120K settlement for Methuen cop

METHUEN — City councilors voted 6-2 last night to approve a "full and final settlement" of $120,000 for police Officer Joseph Aiello.

Aiello, the former patrolmen's union president, sued the city, Mayor William Manzi and police Capt. Thomas Fram, claiming he was transferred out of the detective bureau as retribution because the union didn't endorse Manzi's 2007 re-election bid and because he cooperated with an FBI investigation of Manzi.

A civil trial in federal court ended in a mistrial in November when jurors couldn't reach consensus.

The city's attorneys and Aiello's attorneys later met for mediation. The court ordered judgment in favor of Aiello earlier this month, and Aiello was set to receive $15,000 from Methuen.

But a dispute erupted over whether the judgment required the city to pay Aiello's attorneys' fees.

City Solicitor Peter McQuillan said in court documents that Aiello's lawyers racked up a bill of $250,000 to $300,000.

Aiello's attorney, Hillary Schwab, wrote in a court document filed Friday that Aiello planned to seek attorneys' fees, litigation expenses and interest on the judgment.

"However, the parties have been negotiating a resolution of this matter and hope to finalize a settlement and to move jointly for the Court to enter an amended judgment finally resolving this matter" by today, she wrote.

"Even though it's tough to swallow, $120,000 is not $300,000," City Councilor Jennifer Kannan said last night.

McQuillan said the $120,000 includes the $15,000 that the city already agreed to give Aiello.

Councilors Jeanne Pappalardo and Pat Uliano voted against the settlement. Councilor Larry Giordano was absent.

Pappalardo said she couldn't vote without seeing the agreement first.

Pappalardo said Manzi was acting as a candidate for re-election, not as the mayor, at the time of Aiello's claims. She called the case an "unnecessary" cost for taxpayers.

Manzi declined to comment, deferring to McQuillan.

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