PETERSBURG – Gary DeMarzo, who was fired as Upper Township’s business administrator in January and then laid off as its personnel officer on March 10, has filed a second legal action against the township.
The civil complaint, filed in Superior Court March 10 by DeMarzo’s attorney, Christopher Gray, claims that a conflict exists between Township Committee members Samuel Palombo and Zachary Palombo, and DeMarzo.
It asks the court to void DeMarzo’s firing and halt the layoff plan, claiming that the Palombos “made statements related to (DeMarzo) and his performance as an Upper Township employee that were false, defamatory, and held the plaintiff in a false light.”
The complaint says the Palombos should not have voted for DeMarzo’s removal, saying their votes were void from the beginning.
The committee did not give any reason for replacing DeMarzo as administrator at its Jan. 27 meeting and is not required to do so. His layoff from the personnel officer position had been approved by the state Civil Service Commission, an approval the township needed in order to take that action.

The Palombos’ alleged false statements caused DeMarzo to file an earlier complaint in Superior Court, on Dec. 30, 2024, against them, resident Barbara Murphy-Leary and unnamed other persons and companies, charging that his rights were violated.
That complaint quotes a campaign flyer from 2024 that says the then-current Township Committee majority did not respect Upper Township residents, and that “their hand-picked administrator from Wildwood yells at local residents.”
That complaint also claims the township administration was firing “dedicated public employees.” DeMarzo said he asked Zachary Palombo about the flyers and was told, “No comment.”
The latest legal action comes after DeMarzo was reappointed as administrator at the Jan. 3 Township Committee reorganization meeting, as well as being named Joint Insurance Fund commissioner, Americans With Disabilities Act coordinator and municipal affordable housing administrator.
The township is currently using a temporary administrator, Joe Verruni, of Jersey Professional Management, one of whose duties is to conduct a search for a new, full-time administrator. Verruni is also temporarily handling DeMarzo’s personnel officer responsibilities.
DeMarzo claims that the CapeGOP is ultimately responsible for his removal, saying it wants to replace him with a political appointee.
He will be paid for 45 days beyond the March 10 meeting.
Contact the reporter, Christopher South, at csouth@cmcherald.com or 609-886-8600, ext. 128.