Federal Lawsuit Against Brevard County Clerk Dismissed

By Tyler Winik // April 15, 2014

Clerk Continues To Assert Loan Done By Needelman, BlueGEM, Harr and HP Was Illegal, Unconstitutional

Earlier today, U.S. District Judge Charlene Edwards Honeywell approved a U.S. Magistrate Judge’s February 19, 2014 Report and Recommendation that Hewlett-Packard Financial Service’s (“HP”) lawsuit against the Brevard County Clerk of the Circuit Court (“Clerk”) for non-payment of a $6.1 million loan be dismissed on jurisdictional grounds, allowing HP to refile its action in state court.

Former Clerk Mitch Needelman entered into the $6.1 million loan after losing the primary election in 2012 to fulfill the funding of a scanning contract that led to the arrests of Needelman, Matt DuPree and BlueGEM CEO Rose Harr. BlueGEM was a direct recipient of $5.7 million of the loan.

Caruso, Swerbilow & Camerota, P.A. (“CSC”), BlueGEM, and Harr were also parties to the suit. Claims against CSC included malpractice related to their advice to Needelman and HP surrounding the transaction and claims against BlueGEM and Harr included fraudulent inducement and misrepresentation in negotiating the transaction.

The Clerk continues to assert that the loan done by Needelman, BlueGEM, Harr, and HP was illegal and unconstitutional and the Clerk will continue to defend that position should HP refile its claim in state court.

See Related Story: Needelman Investigative Summary Released By FDLE