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| City announces it will appeal, new legal team speaks By Lewis Rutherfurd [ lewis@hmbreview.com ] Published/Last Modified on Wednesday, December 19, 2007 3:05 PM PST Half Moon Bay Mayor Bonnie McClung announced at Tuesday night's City Council meeting that the city will appeal the Beachwood land-use judgment that threatens to leave the city in financial ruins. And the city's new appellate attorney said he had numerous grounds for appeal. The decision follows several closed session meetings, including one just prior to her remarks, and consultations with at least three appellate attorneys. Also Tuesday, the city retained the services of the San Francisco legal firm Orrick, Herrington & Sutcliffe to file the appeal. "The City Council has decided to go forward with an appeal," McClung said in a room packed with more than 100 people, including former City Council members. A cluster of television news crews turned out for the drama as well. "We are united in our position at this point that this is the best course of action for us," she said. Then City Manager Marcia Raines introduced law firm partner John Knox as the man who will "quarterback" the city's campaign against the judgment. Knox told the crowd that the city would mount an appeal regardless of any bond required by U.S. District Judge Vaughn Walker. Legal analysts have speculated that a bond could run into the millions of dollars and might be imposed as a condition of appeal. Tuesday's drama followed Walker's 167-page finding against the city that handed at least $37 million to developer Charles Keenan. The case, which had origins in the 1970s, revolved around a 24-acre plot east of Highway 1 north of downtown. Walker ruled the city essentially took the property by creating wetlands on the property, rendering it useless. "We believe the judge's decision is erroneous and contains many grounds for appeal," Knox said. In a later conversation he declined to comment on specific errors in the 167-page decision, but said that he would challenge some of Walker's findings of fact in post-trial motions. Walker ruled against the city across the board in all his factual determinations and imposed the largest possible judgment in the case. As the ruling authority in the case, the judge's factual determinations will form the basis of an appellate court's understanding of the issues in the complex and prolonged Beachwood fight. But Knox said that "additional" facts from the record would be re-emphasized and debated in the motions filed prior to an appeal. If Walker rules against the motions wholesale and an appeal process is initiated, matters of legal interpretation are considered fair game for the 9th Circuit Court of Appeals. Any strictly factual challenge or introduction of new facts to the appeals court will be tricky. "It's a bit nuanced at that level," said Knox. Some former city officials at the meeting, including former mayors Mike Ferreira and Deborah Ruddock who held city posts in the early days of the Beachwood conflict, applauded the announcement. "Good call, really good call," said Ruddock of the choice to appeal the decision benefiting Keenan. "To go forward we need to understand the nature of the beast - and it is a beast. What we are talking about here is a predatory action against the city." Comments from the audience were orderly and went on for close to an hour. Many regular faces spoke and an insurance lawyer even made a direct pitch to the council for consultations. There were numerous calls to fire the city's attorney and many members of the crowd called for direct talks with the developer. "This whole thing tonight seems surreal," said local resident Don Sheardown, who suggested negotiation after years of legal battles. "I hear a sucking sound from lawyers -- we're a small town. "My kid keeps saying, 'Why does Santa go down the chimney, why doesn't he go through the door?'" Sheardown said. "To me this is like -- Why don't you negotiate? Why do you keep trying to go down the chimney?" |