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June 07. 2012 11:48PM

Elderly couple's headline-grabbing case is but latest

LONDONDERRY — The planned-unit development (PUD) ordinance seems to depend on a relationship of cooperation and trust between the town and the developer.

But developer Michael Kettenbach and Market Basket have a history of aggressive legal action to protect and further their interests. And that makes trust more of a challenge, critics say. Pillsbury Realty Development is headed up by Michael Kettenbach, who also leads the real estate acquisition and development arm of the Market Basket Grocery store chain.

In December, Kettenbach and his attorney, Ari Pollack, expressed concerns about how the Woodmont Commons application would be reviewed, including a requirement for the planning board to act on an application 30 days after it is filed.

But planning board member Tom Freda said timing was secondary to ensuring that the members had enough information to make an informed decision on the application.

“I mention that because of the repeated references by the applicant to ‘statutorily,’” said Freda.

Neighbors sue, win

Many Londonderry residents have read accounts of Kettenbach’s latest legal battle that ended last October when a jury in Suffolk Superior Court in Boston awarded Jerome Wodinsky, 84, and his wife, Bernadette, 69, $1.85 million, as well as interest and lawyers’ fees in a lawsuit originally filed by Kettenbach against the couple.

The Wodinskys live in a fourth-floor condo in a building in Boston that Kettenbach and his wife bought in 1996. The Kettenbachs wanted a single-family home and succeeded in buying out all of the other condo tenants except for the Wodinskys, who have lived in the building for 30 years.

The Kettenbachs made improvements, including a new roof which provided plenty of noise above the Wodinskys. An old elevator was ripped out and the replacement took eight months to install while the elderly couple climbed four flights to get to their apartment.

Kettenbach sent the Wodinskys a $200,000 bill for their share of upgrades. When the couple balked at paying, he sued them. The Wodinskys filed a countersuit, claiming they were being forced out of their home. They won.

Many people have heard at least bits and pieces of the long and convoluted legal saga among the Demoulas family over their chain of Market Basket grocery stores. Kettenbach, who married Frances Demoulas in the 1970s, was on the losing end of the battle that included a courtroom brawl, lawyers being disbarred and accusations of homes being wire-tapped.

Other court cases

In 2006, a Superior Court judge dismissed a lawsuit filed by RMD Inc., the real estate branch of the Market Basket chain, against a group of Tewksbury, Mass., residents who fought a proposal to expand a store and shopping plaza. The residents felt the expansion plan failed to meet Department of Environmental Protection guidelines for storm water drainage.

When a court dismissed their complaint, Kettenbach sued the group for legal expenses and lost. Six months later, Market Basket sued the group again, arguing the residents had been working with one of the grocer’s competitors to maliciously prosecute the company, causing delays and losses of $250,000. Judge Paul Chernoff disagreed and dismissed the suit, saying there was no evidence to support the grocery chain’s claim.

In Lowell, Mass., the Demoulas chain kept the city and a competitor tied up in court for five years with complaints about a proposal to build a Hannaford’s grocery story next to an existing Market Basket. Demoulas claimed Hannaford had failed to clean up environmental problems at the site, and that the project would overburden the neighborhood with traffic. Hannaford’s won permission to build after a four-day trial.

In Raynham, Mass., Demoulas fought the Planning Board’s decision to issue a special permit for a Walmart Superstore slated to go next door to a Market Basket. The company argued the town failed to enforce subdivision requirements and had not adequately addressed traffic problems. After generating mountains of legal bills, the Massachusetts Supreme Court ruled in favor of Walmart, which expects to open the new store sometime next year.

Property tax challenges

In the past, towns facing legal challenges from the grocery store chain have been reluctant to go to court, with community leaders openly admitting they depend on the tax revenue from the stores.

But the grocery store has also been to court to challenge their property tax bills.

In 2007, Demoulas requested and was granted a property tax abatement from the town of Seabrook. They also requested an abatement in Salem, but were unable to come to an agreement on the amount. Market Basket sued the town of Salem, arguing real estate taxes for their three stores were egregiously high. In 2011, Rockingham County Superior Court Judge Bruce Mohl agreed, and ordered the town to pay the grocers $600,000.

Kettenbach and Pollack did not return phone calls for comment.

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