A potential settlement has been reached in a federal lawsuit filed against Lansford Borough by a part-time police officer.

The suit was filed by Gilbert Diaz, who worked as a borough officer for six months in late 2024 and early 2025, claiming he was deprived of due process when removed the schedule.

Named as defendants, individually and in their respective borough roles, were former Mayor Hugh Vrablic, police Sgt. Shawn Nunemacher, Councilmen Joseph Butrie and Jack Soberick and former council members George Gilbert and Jennifer Staines.

Both sides met Thursday in Scranton and notified the court that a settlement has been reached, prompting U.S. District Judge Karoline Mehalchick to issue an order staying all actions in the case and marking the matter closed.

The parties have a 60-day window to reopen the case, if the settlement falls through.

Council President Joe Genits said he wasn’t allowed to comment on the settlement agreement until after council meets in executive session Wednesday to discuss it.

Council could act upon the agreement on Wednesday as well, he said.

According to the suit, Diaz was working 40-plus hours a week as an officer under former Police Chief Kyle Woodward, who left the post effective April 1, 2025.

Diaz applied for the open position of police chief and later learned that Nunemacher, who now serves as officer in charge, was “agitated” over Diaz seeking the job, which Nunemacher felt “was his for the taking,” the suit said.

Diaz was paired with Lansford Detective Joshua Tom while Nunemacher was away for supervisor training, the suit said.

Tom told Diaz the “ongoing issue” between him and Nunemacher needed to stop and requested they meet to “clear the air,” the suit said. Diaz told him he didn’t have an issue with Nunemacher.

Later, Diaz overheard an obscenity-laced exchange between Nunemacher and a Lehighton police officer, in which Nunemacher said he was never going to be chief due to the then council president, the suit said. The council president at that time was Bruce Markovich, and he was not named as defendant in the suit.

Nunemacher also stated that Diaz made a mistake in applying for the chief’s position and that he should withdraw, as he was “next up” for the post, the suit said.

On April 10, Diaz heard from coworkers that Nunemacher was asking questions about him, and then Nunemacher asked to meet with him.

Nunemacher provided him with a write-up on an arrest a month earlier in which an item was missed in a search and found by jail staff, the suit said.

Nunemacher also told Diaz he wanted him to end the “backstabbing” and other talk, the suit said.

Diaz emailed then-Mayor Vrablic saying he wanted to file a complaint as he felt he was being retaliated against by Nunemacher for applying for the chief’s position, the suit said.

On April 12, Diaz received an email from Vrablic saying he was removed from the schedule pending an investigation based upon external complaints, the suit said. Diaz had been scheduled through June.

Diaz requested in writing that he be advised of the charges against him, the suit said. On June 19, Diaz’s counsel, in a letter to the mayor, demanded that he be afforded due process under state and federal law.

On Aug. 13, a motion was introduced to council to schedule a hearing with Diaz present regarding him not being on the schedule. The motion was defeated, with the council members named in the suit voting against the hearing.

The suit also states that when Councilwoman Michele Bartek attempted to schedule a meeting where Diaz would be provided “some semblance of due process,” the mayor suggested that Bartek and Diaz were in a sexual relationship.

The suit also alleges that Soberick “spread rumors” that Diaz had been arrested for domestic violence and had a protection from abuse order against him, which was not true.

Other alleged false statements that were made included Nunemacher telling the incoming mayor that Diaz failed a polygraph test, and Nunemacher told a councilman that Diaz shredded his background investigation or didn’t have one.

The suit states that Diaz had not been scheduled for work, been advised of the charges against him or given the opportunity to state his position.

The first count of the suit claims that Diaz was denied his right to due process under the 14th Amendment of the U.S. Constitution regarding his “de facto” termination and lack of a hearing to present his side.

The second count claims that the statements made about Diaz placed him before the public in a false light, and he suffered damage to his reputation and standing in the community, and ability to find work.

The third count claims defamation in the statements made by Vrablic regarding Bartek and Diaz being involved sexually; Soberick’s statements regarding Diaz being arrested for domestic violence; and Nunemacher’s statements regarding his employment records.

Diaz sought reinstatement, back and front pay, nominal, punitive and related damages and a public apology.