On Wednesday, October 15, 2025, Law.com reported that a judge in Pennsylvania recused himself from a $4.7 million breach of contract lawsuit between Lackawanna County and its jail health care provider, Correctional Care Inc. (CCI). The recusal, by Judge Terrence R. Nealon of the Court of Common Pleas for Lackawanna County, comes after CCI requested the entire bench’s recusal due to a fellow judge’s prior involvement in the case.
Judge Nealon’s order, dated October 10, stated that the testimony of Judge Andrew J. Jarbola, who assisted in the contract’s creation in 2009, could create an appearance of bias. Judge Jarbola, along with several other judges, including Michael J. Barrasse, Vito P. Geroulo, Margaret Bisignani-Moyle, James A. Gibbons, and Mark J. Powell, had been members of the county prison board during the contract’s timeframe. Judge Nealon stated that his recusal was necessary to maintain public confidence in the judiciary.
The lawsuit, initiated in July 2021, revolves around whether the salary of CCI’s president and chief medical officer, Dr. Edward J. Zaloga, should be classified as compensation or as reimbursable costs and expenses. CCI claims the county owes them $2.9 million in unpaid compensation and $1.8 million in outstanding costs and expenses.
According to Judge Jarbola’s testimony, Zaloga’s salary was intended to be treated as reimbursable costs, not compensation. John Siejk, counsel for CCI, argued that while costs and expenses were reimbursed, his client did not receive the compensation they were due.
Christopher Caputo, representing the county, countered that CCI did not claim non-payment of compensation until the county denied renewing their contract in 2021. The case also addresses COVID-19 payroll expenditure loans obtained by CCI and whether the provider owes the county credit from the loan.
Caputo stated that Judge Nealon’s recusal was not unexpected, but expressed concern that it would delay the summary judgment motions. He anticipates a delay of up to six months while a new judge is assigned to the case.
An oral argument on CCI’s motion for partial summary judgment and the county’s motion for summary judgment is scheduled for January 29, 2026.
Source: Law.com
