Overlawyered: Chronicling The High Cost Of Our Legal System

California town grapples with judgment 3x its budget

“Half Moon Bay is wrestling with unpleasant options for responding to a court ruling that officials say threatens the ‘very existence of our city government’ – a $36.8 million judgment against the city for turning a proposed housing development site into wetlands.” The town’s annual budget is $10 million. The property in question had become […]

“Half Moon Bay is wrestling with unpleasant options for responding to a court ruling that officials say threatens the ‘very existence of our city government’ – a $36.8 million judgment against the city for turning a proposed housing development site into wetlands.” The town’s annual budget is $10 million. The property in question had become unbuildable when protected wetlands appeared on it, as a result, the owner contended, of negligent town policies affecting water flow and retention. The plaintiff had bought the property in 1993 for $1 million. “Under the worst-case scenario, officials say, Half Moon Bay would become the first Bay Area city forced to dissolve, and the coastal town’s land would become an unincorporated part of San Mateo County.” (John Coté, San Francisco Chronicle, Dec. 18).

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4 Comments

  • 1) If the town dissolves, it would be to evade a judgment. That may bring further court sanctions.

    2) If the town dissolves, and government services end, that damages the value of the land. No development could get financing if the buildings have no fire or police protection.

    3) Hire another lawyer, and get Chapter 9 bankruptcy protection. Pay nothing, and continue to operate.

    http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter9.html

    4) If the Mafia came into town with weapons and tried to extort money from every citizen, what should they do?

  • Trial documents and extensive review here:

    http://www.montarafog.com/index.php?option=com_content&task=view&id=99&Itemid=1

  • There are two types of people in Half Moon Bay – fishermen with common sense, and yuppies without.

    Guess who gets elected to the city council.

    • By mojo

  • This is one case that I pined a hope for just such a judgment to come about. Good for the developer in this case.

    I’m sure the yuppies that elected such stupid folks and supported such stupid and intrusive projects to harm another will be more than happy to pay the judgment.

    They can do it with a special sales tax, land use, special improvement districts, I’m sure they will figure it out.

    Next round? Civil suits against the city fathers/managers…?

    • By TC