Fullerton About to Issue Bonds to Pay for Past Lawsuits

Fullerton Rag

Item number 9 on the agenda of the July 16 Fullerton City Council Meeting is a resolution approving the issuance of millions of dollars in Judgement Obligation Bonds to replenish the city’s Liability Insurance Fund. The City Manager’s Summary included at the beginning of the 135 page staff report explains that “In 2012 the City paid over $ 7 million in legal settlements to various parties, depleting cash in the Liability Insurance Fund.” The Discussion section is somewhat less explicit:

“In 2012 the City settled two large legal cases for a combined payout of $ 7 million.  The first was the Verona Slopes case (Hanson v City of Fullerton) involving eminent domain, which had been lingering for decades and was settled for $ 6 million. The second was a settlement totaling $ 1 million for another liability case. These payments depleted all cash in the Liability Insurance …”

 

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About Fullerton Rag

Stories cross-posted from "The Fullerton Rag" are generally written by Green and good-government activist Matt Leslie.