Sandra Emerson, Staff Writer
Created: 02/07/2012 12:45:19 PM PST
SAN BERNARDINO – An attorney has filed a lawsuit seeking reimbursement for taxpayers of the $102 million settlement made by the San Bernardino County Board of Supervisors in 2006 with Rancho Cucamonga-based developers Colonies Partners LP.
Cory Briggs filed the suit in San Bernardino County Court on Monday on behalf of two non-profit groups, the Inland Oversight Committee and Citizens for Responsible Equitable Environmental Development, and presented it to the county Board of Supervisors during the regular meeting on Tuesday.
“I invited the board to adopt a resolution that the county is going to cooperate in our lawsuit and not fight it,” Briggs said.
“And so now the ball is in the county’s court. Do they want to stand up and defend an illegal contract and screw the taxpayers for $102 million plus interest, or do they want to right the wrong and help us get the money back from the developer and give it back to the taxpayers?”
The lawsuit alleges that because former Board of Supervisors Chairman Bill Postmus pleaded guilty in March to taking bribes while attempting to reach the settlement with the Colonies, he violated California Government Code, Section 1090.
Code 1090 says that public officials “shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members.”
The settlement ended litigation over who was responsible for paying for flood-control improvements at the developer’s 434-acre residential and commercial development in Upland.
“Bill Postmus pleaded guilty of violating Code 1090 and the Supreme Court has said that a violation of Section 1090 required the beneficiary to return all the money,” Briggs said. “So the developer has to give back the $102 million.”
Colonies co-managing partner Jeff Burum, former county Supervisor Paul Biane, Mark Kirk, former chief of staff for Supervisor Gary Ovitt and former Assistant Assessor Jim Erwin were indicted in May on felony conspiracy, bribery and conflict of interest charges.
To read entire story, click here.
It seems appropriate that this lawsuit was filed at approximately the 2 years anniversary of the Mike Ramos and Jerry Brown press conference announcing “the most appalling corruption case in decades, certainly in the history of San Bernardino County and maybe California itself.” Hey Mike and Jerry, how’s that prosecution going?
In this case, Mr. Briggs will no doubt fire up a lot of people, given his use of language such as “right the wrong” and rescind the “illegal” deal that “screw[ed] the taxpayers.”
Of course, those people don’t remember (or, if their knowledge was based on Sun and Daily Bulletin articles, were deceived) that the settlement only settled the amount of money the county had to pay The Colonies. In a previous trial in the Superior Court, liability was imposed on the county for their actions against The Colonies.
So, let’s “right the wrong” and rescind the settlement, and go back to the point where The County owes The Colonies an undetermined amount that could exceed $300 Million.
Have the plaintiffs in this silly lawsuit thought about that? I suspect not.
Observer of Facts;
Instead of asking Mike and Jerry how the prosecution is going, maybe you should ask the F.B.I. how it is going.
Repairman:
The FBI is taking a low profile these days. They must be busy trying to figure out how they are going to explain away their actions in the search of Jeff Burum’s office.
Observer of Facts:
Your probably right, nothing to worry about.
Here is the problem:
Government Code Section 1092 provides that every contract made
in violation of section 1090 may be avoided by any party
except the official with the conflict of interest. Despite
the wording of the section “may be avoided,” the AG’s office
points out that “case law has historically interpreted
contracts made in violation of section 1090 to be void, not
merely voidable. (Thomson v.Call, supra, 38 Cal.3d 633; People
ex rel. State of Cal. v. Drinkhouse (1970) 4 Cal.App.3d 931.)
However, in Marin Healthcare District v. Sutter (2002) 103
Cal.App.4th 861, the court refused to void a contract where
the legal action challenging the contract did not come within
an applicable statute of limitations. Thus, the Marin
decision appears to have the effect of making such contracts
voidable and not void from the inception. (The court failed to
indicate which statute of limitations applies to section 1090
violations.)” (Emphasis added)
===========
No slam dunk here…
So Observer, with your logic (or lack thereof) the public isn’t due $102M gift-o-funds, so what about the $300M for a fraudulent claim?
Sorry JB and DR… u can’t observe the facts, and still have it both ways.
LittleStevieWonder:
Here are the “facts:” The Colonies sued the county, and won. All that was left to be determined was how much money the county was going to have to pay The Colonies. That amount could have exceeded $300 million, but The Colonies agreed to accept $102 million.
I assume that this is the “gift-o-funds” you refer to. That’s one interpretation; another is that the winner of a lawsuit agreed to accept reduced damages in a settlement. If there was a “gift,” it seems like The Colonies were the one who gave it, giving the county a 66% discount.
If the settlement is rescinded, it does not make the county’s obligation to The Colonies go away. On the contrary, the county could have to pay the Colonies far more than the amount of the settlement. This seems like a simple concept to me; am I missing something?
OOF, based on what LSW wrote on my blog, this lawsuit was brought by his group of aluminum foil whack job gadflies that see a conspiracy under every rock. That would explain why there is so little information on these groups who are suing. I only hope the attorney required a retainer and didn’t take this on contingency. He will be out a lot of money otherwise.
No matter what one thinks of the players on either side or the amount of the agreement, the fact still remains the county lost the case in a court trial. The judge has not plead guilty to a 1099 violation.
Even a blind man can see (hey Sharon, my tinfoil hat fell down over my eyes) it’s a friendly between the Colonies, County, Upland and SanBAG, represented by BB&K in the indemnity action.
Don’t forget, the indemnity action was started way before the Settlement occurred in 2007 and the legal services fraud, including the fees for CalTrans, Upland and SanBAG total more than $10M. But that’s nothing compared to the $20M that County Counsel has spent so far. You tell me Sharon, how much do you think DA Mikey’s SELECTED PROSTITUTION in this case has cost the County general fund? Maybe you should put in a public records request and find out just how much money your employer is squandering by diverting public opinion away from the facts.
Sharon:
You and I know that the county lost in court, but many others still seem to not understand that fact. Of course, the local media is not helping.
Check out today’s Sun and Daily Bulletin article, where Bill Postmus admits that the $100,000 PAC contribution was not a bribe, and that he did not even find out that the Colonies wanted to make the contribution until 2 or 3 months after the settlement.
The article contains the same tired and misleading language about how the “county’s landmark settlement … ended more than four years of litigation.” They continue to mislead readers by implying that this settlement took place before the trial, as most settlements do.
To catch a thief? The constitution is clear and so is the Supreme Court in Stogner vs Calif., Ex Post Facto Clause forbids revival of a previously time-barred prosecution.
And so too will be this claim.
1090 is 1,3 or 4 yr. statute of limitations depending on the offense prior to 2008. 4 Yr. being the catch all. In January 2008 the new law went into effect:
In 2007, the Legislature amended section 1092 to provide that legal challenges to contracts made in violation of section 1090 must be commenced within four years after the plaintiff has discovered, or in the exercise of reasonable care should have discovered, the violation. (§ 1092, subd. (b).) Thus, although a contract made in violation of section 1090 is void and disgorgement of the contract proceeds is automatic, the passage of time can render such a contract immune from challenge. (Brandenburg v. Eureka Redevelopment Agency (2007)152 Cal.App.4th 1350.)
The constitution imo bars tolling past 4 yrs….period, unless the offense was committed after 2008.
KEEP ON WRITTING WONDER… YOURE MAKING ME LOOK GOOD…. HEY YOU NEED SCHAURES NUMBER YET????? IT MIGHT BE TIME….