NORTH ANDOVER — The town's attorney is asking the court to reinstate a $5,000 lawsuit against former School Committee Chairman Alfred Perry for unpaid health insurance payments after the case was thrown out earlier this week.
The case was dismissed in Lawrence District Court after the town's attorney, John Bryden of Andover, failed to show up to a hearing Wednesday.
But Bryden said he had called the clerk's office and informed them of a scheduling conflict — he was slated to be in Superior Court that day — and the message must not have been passed on to the right person.
The town was suing Perry for more than $4,700 in unpaid COBRA health insurance payments that built up last year after he left the committee.
"We have every intention of going forward with this if the court will allow the reversal," selectmen's Chairwoman Rosemary Smedile said. "That's why we hired an attorney. We want to recoup this money."
In an unrelated matter, Perry faces embezzlement, larceny and insurance fraud charges for allegedly bilking customers of his insurance company out of more than $28,000.
Perry, 56, stepped down in March 2007 as School Committee chairman and did not run for re-election.
He participated in the town's health insurance plan through COBRA after leaving his post.
COBRA is a federally mandated program in which employers continue to provide an ex-employee with health insurance for up to 18 months. The town pays for the health insurance and the former employee is required to reimburse the town for 102 percent of the cost of the premium.
Town officials allege that Perry paid his bills at first and set up a monthly payment plan, but stopped shortly after.
In a letter to the court dated Sept. 3, Perry admitted he needs to pay back the town.
"I currently am out of work and do not have any income to pay this claim," Perry wrote.
The Board of Selectmen discussed suing Perry back in Dec. 2007, but did not file suit until this summer.
"We waited and tried to get him to do the right thing," Smedile said. "Then we decided to come forward with the appropriate action."
The court had granted the town a $6,000 attachment on Perry's property on Aug. 21, offering the town some security while they pursue a judgment.
Perry's home at 548 S. Bradford St. is assessed at $1.05 million, according to records on the town's Web site.
Perry was arrested last week and arraigned on six counts of embezzlement by a broker, six counts of larceny over $250, six counts of misdemeanor insurance fraud by an insurance agent or broker, forgery of a check and uttering a false document.
The charges arise from a police investigation of Perry's now defunct Internet Insurance Agency, based on complaints from six customers who said they were cheated out of their money.
According to court records, Perry used $28,295 given to him by various clients to pay personal gas, telephone and credit card bills, while allowing his clients to believe they were insured.
