State Assemblyman Ted Lieu is doing his best to save Hermosa Beach from possibly going bankrupt if it has to pay damages for voiding a contract with Macpherson Oil.
On April 29, the Judiciary Committee will vote on a bill that Lieu introduced in order to prevent public agencies from having to pay lost profits in any dispute that is a result of voters approving an initiative.
Besides creating a bill that would perhaps keep the city from having to pay a majority of proposed damages, Lieu is also helping set up a meeting between Macpherson and City Council members to try and reach a settlement.
A judge ruled that Hermosa Beach is liable for damages to Macpherson Oil, which is suing Hermosa Beach for $500 million for breaking its oil-drilling contract a decade ago. But Lieu said he is hoping this bill will keep that from happening.
“It will keep the cities from being bankrupted because of voter initiatives,” Lieu said.
City Councilman Michael Keegan said he’s optimistic about the bill.
“This is a positive move for our city,” Keegan said. “It’s a move in the right direction. We’ll see if we can’t get this passed.”
But Don Macpherson’s attorney Jim Bright said the proposed bill is “unfair” and it would be “an uphill battle to get it passed and apply it retroactively.”
“It’s asking the California Legislature to come in after the game has been played and change the game rules.”
He said it would affect future issues, but it would be difficult to apply the bill to the Macpherson case.
The city is currently waiting for an answer on a writ seeking an appeal to a judge’s decision. But instead of putting all the weight on an appeal and the proposed bill, Lieu is orchestrating the meeting with Macpherson, Bright and the Hermosa Beach officials to try and reach a settlement.
“I thought it would be a good idea,” Lieu said. “The goal is to open dialogue … but it’s going to take more than one meeting.”
He said Macpherson is not out to bankrupt the city, he just wants to reach a reasonable agreement.
Unlike his opinion of the bill, a meeting of both parties is something Bright approves of.
“I’m delighted for the opportunity to come together with something sensible for both parties,” Bright said. “Both parties have to be reasonable … Macpherson is going to go in with an open mind.”
Keegan said the meeting is necessary and he is looking forward to visiting with Macpherson.
“I’ve always wanted this,” Keegan said. “I want to get this behind us.”
Lieu said he is hoping to conduct the meeting before the bill is heard. |
