Business owner faces potential insurance loss from sidewalk project defects

A landmark Main Street diner may lose its insurance in less than a month because of defects in recently installed sidewalks.

Hawley Diner owners Jim and Carol Swanick brought their concerns to a council meeting Wednesday night.

"My problem is that I'm going to lose my insurance in 20 days," Mr. Swanick said. "What is council going to do?"

In an Aug. 27 letter, insurance agent James Balaban informed the Swanicks that American Insurance Administrators Inc. reported to him "hazards" in the new sidewalks have caused people to fall and suffer injuries. Mr. Balaban reported the insurer requested the policy be placed "elsewhere immediately" or face nonrenewal in 60 days.

The Swanicks, who co-own Chick's Diner in Scranton, are two of several residents and business owners who have criticized the project. The sidewalks and curbing were installed by Leeward Construction. In October 2008, the 4-year-old project drew fire when construction stopped, leaving unfinished sidewalks on portions of Main Avenue through winter.

Borough officials are developing a punch list of issues found in the sidewalks.

"We've made it abundantly clear, we're not satisfied with the project," solicitor Robert Bernathy said. Mr. Bernathy also noted the contractor will not be paid until project issues are addressed. Councilwoman Mary Sanders said her biggest concern about the project is drainage issues.

For the Swanicks, the biggest concern is a loss of insurance. Mrs. Swanick said they had given Mr. Bernathy the letter from their insurance agent shortly after it was received. That letter, however, did not make it to council, and that is why the issue was brought to the table Wednesday night, she added.

The Swanicks on Wednesday provided copies of the letter to the council and members of the public. "We waited for the council's response and we got nothing," Mrs. Swanick said. "We're upset, because the council does not seem to be helping us."