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Reporter biographies - Mike North

Thursday, Aug. 05, 2010

Organizations lend legal help to Livingston in Foster Farms lawsuit

Foster Farms claims Livingston illegally raised water and sewer rates.

LIVINGSTON -- City officials think they hold a stronger position in a water rate lawsuit brought last year by Foster Farms after receiving support from some big-name organizations.

The League of California Cities, California State Association of Counties and the Association of California Water Agencies support of Livingston was disclosed during a City Council meeting Tuesday.

The LOCC is comprised of 480 cities, the CSAC is comprised of 58 counties and the ACWA has 450 members. The organizations feature litigation committees that look into various legal issues -- in this case, a lawsuit filed by Foster Farms on July 14, 2009, claiming the city illegally raised sewer and water rates.

A trial judge initially ruled in favor of Foster Farms, a decision the city promptly appealed.

The stance of the organizations shows that Livingston has acted legally and properly about the water and wastewater rates, said City Manager Richard Warne.

The LOCC, CSAC and ACWA have all chosen to spend time and money to support Livingston by filing a brief with the Court of Appeals in support of the city, he said. The brief is still in the works.

"We're gratified that attorneys representing statewide organizations have examined the case and agreed with Livingston's arguments," Warne said.

However, Randy Boyce, senior vice president and general counsel for Foster Farms, hasn't seen anything filed with the Court of Appeals on behalf of any of the three organizations. He said he'd be taken aback if they do. "If they say they support the city acting illegally and unconstitutionally, that would surprise me," he said.

Jon Hobbs, Livingston city attorney, said the three organizations filing the brief with the Court of Appeals wouldn't spend the resources to do so unless they share a strong outlook in favor of the city. "It's a good sign," Hobbs said. "We're happy about it."

The LOCC, CSAC and ACWA are all invested in the appeal court's decision because it could set a precedent for future cases, affecting them down the road, he added.

The organizations learned about the case and decided to investigate it after one of the attorneys came across a newspaper story about the lawsuit, Hobbs said.

By filing a brief that includes a legal argument, the organizations provide the court of appeals with another perspective on the issue, he said.

Mayor Daniel Varela Sr., who works for Foster Farms, declined to comment on the lawsuit since it could be perceived as a conflict of interest. No other council members could be reached for comment.

Reporter Mike North can be reached at (209) 385-2453 or mnorth@mercedsun-star.com.

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