City poised to take step toward appealing Beachwood decision
By Lewis Rutherfurd [ lewis@hmbreview.com ]
Published/Last Modified on Monday, December 17, 2007 3:22 PM PST

The city of Half Moon Bay intends to hire an appellate law firm and a financial consultant as part of a "comprehensive approach" to a looming $37 million land-use judgment, Mayor Bonnie McClung said. What's more, the city's new legal counsel has left little doubt that the firm plans to appeal the decision to the 9th Circuit Court of Appeals.

City Manager Marcia Raines will ask the City Council at a meeting beginning at 7 p.m. Tuesday, Dec. 18, to hire the law firm Orrick, Herrington & Sutcliffe as well as Piper Jaffray, an international financial consultant and investment-banking firm. The meeting follows a closed-session meeting of council called specifically to discuss the Beachwood decision. According to a staff report, the City Council, city manager and City Attorney Adam Lindgren met in "lengthy closed sessions" on Dec. 7 and 12 to receive "invaluable, free advice and information" from three legal firms and Piper Jaffray.

Piper Jaffray estimates its total cost to the city over the next year at about $22,500, depending on the nature of any bond requirements the city may incur through appeal and the length of their service. Orrick did not offer such an estimate but included hourly fees for partners in its proposal. Those fees range up to $820. Firm partner John Knox, who said he will take the lead in the city's case, charges $705 per hour.

City officials have said that an appeal is not certain and the hires are a way to approach all avenues in light of the burdensome judgment. But Beachwood developer, Charles Keenan said Friday that he expected nothing short of a legal fight over money in the coming months.

A letter from Knox to Raines, included in the City Council's agenda package, reads in part: "Our services will include filing and prosecution of an appeal to the United States Court of Appeals for the Ninth Circuit Court of the decision of the United States District Court in the case, potential settlement negotiations with the plaintiff, potential financing of any such settlement, and other general assistance in resolving this matter for the City ...We understand that the city would like us to bring the firm's resources in litigation, finance, negotiations, legislative and public affairs, insolvency and bankruptcy and real estate to bear on this problem. ..."

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