Macpherson Oil Litigation

By H. S. Fangary

After 13 years and millions of tax dollars spent on legal defense fees, $700 million in potential damages still threaten Hermosa Beach.

The Macpherson Oil lawsuit and a potential $700 million judgment pose the greatest threat to the city.

As an environmental engineer and environmental lawyer with 20 years of hands-on experience with complex environmental litigation matters like this, I feel ideally prepared to work with the city's legal defense team.

Our current City Council seems to have given up on Macpherson. For six months + from February 22, 2011 to September 13, 2011 + they did not meet with the City Attorney once to discuss Macpherson. NOT EVEN ONCE IN SIX MONTHS. And the trial is scheduled to start January 18, 2012.

This means that all the important decisions are made by the attorneys, without any input from the City Council. And our track record has been very disappointing.

On October 31, 2011, the City had a critical hearing and stuck out as Macpherson prevailed in 4 significant motions. The Court ordered that, in defending itself in the trial in January 2012, the City CANNOT introduce evidence such as:

Strike 1- post-1998 oil and gas-related accidents, such as the BP disaster in the Gulf. We lost.

Strike 2 - evidence regarding the City's in ability to pay a $700 million judgment. We lost.

Strike 3 - to allow former Council members to testify. We lost.

Strike 4 - to introduce new expert opinions created after 1998. We lost.

You can review the Court's order regarding these motions here

Did the City inform us about these dangers? The City issued a statement claiming these "rulings do not materially change the scope and direction of the trial or the defenses that the City will present..."

WHAT? These highly material rulings place us in greater jeopardy. And they perpetuate the failures our City Council has subjected us to for the past four years.

2008 - Hermosa's liability upheld by the Court

2008 - Hermosa's petition to the California Court of Appeals DENIED

2009 - Hermosa's second motion for summary judgment DENIED

2010 - Hermosa's petition to the California Court of Appeals DENIED

2010 - Hermosa's petition for review to the California Supreme Court DENIED

Unless we change the way the Council manages this trial, the same team goes to bat in January of 2012. There is a very real possibility that our City may be facing bankruptcy.

Maybe we need a chance in management. If you are concerned about the potential bankruptcy of the City, and want to change how Macpherson has been managed (or not managed) in the past 4 years, then VOTE FOR CHANGE ON NOVEMBER 8, 2011.