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Court of Appeal Rules For City Hall, Affirms Dismissal Of Activists' Class Action Suit Seeking LB Gas Rebates For
(January 7, 2005) -- A CA Court of Appeal has ruled for LB City Hall in affirming dismissal (by a lower court on pretrial motions) of a class action lawsuit by LB Citizens for Utility Reform (LBCUR) and several prominent LB activists, challenging the actions of LB's City Hall-run gas utilility in charging unusually high rates from Dec. 2000-May 2001...and seeking rebates for LB gas consumers that could have totalled roughly $40 million.
LBReport.com posts the Court of Appeal opinion on a link below...with the caveat that the Court of Appeal did not certify it for official publication, effectively preventing courts and other parties from citing or relying on it other cases.
The plaintiffs in the suit brought on behalf of LB consumers were LBCUR, John Donaldson, Adrea and Pete Stoker, Amelia Nieto, Roger Erickson, John Richard Deats, Traci The LB City Attorney's office mounted a vigorous defense, noting that if the plaintiffs prevailed, a multi-million dollar sum could end up being the responsibility of LB's Gas Fund and thereafter LB's General Fund (i.e. LB taxpayers).
The plaintiffs' suit alleged that the City of Long Beach, the City Council and former City Manager Henra Taboada, alleging (among other grounds) violation of LB City Charter section 1502 which provides that the City Hall run utility's rates "shall be based upon the prevailing rats for similar services and commodities supplied or sold by other like utilities, whether public or private, operating in the Southern California area."
The lawsuit alleged that the City Charter required setting ratres similar to those set by Southern California Gas. City Hall said the Charter required that its rates fall within a reasonable range of all "like utilities" in Southern California (which included So . Cal Gas, San Diego Gas & Electric and Southwest Gas).
On pretial motions, a trial court below dismissed the lawsuit...and on January 6, 2005, the Court of Appeal affirmed.
To view the Court of Appeal decision (as indicated, not certified for official publication), click here.
City Attorney Robert Shannon told LBReport.com: We're obviously very happy with the reuslt. I think it's a good result and we're glad it's behind us. The Court of Appeal awarded the respondents (City Hall, former City Manager Taboada) "their costs"...which doesn't mean attorney fees but does mean items such as filing costs, depositions, esperts and the like. "I expect it will be in the thousands of dollars, less than $100,000" said City Attorney Shannon, who indicated he plans to pursue cost recovery because taxpayers did have to defend the lawsuit. One of the co-plaintiffs, Traci Additional comment is pending as we post. Check back with this page, click reload or refresh on your browser for updated text. Contact us: mail@LBReport.com |