Las Lomas Appeals Trial Court's Ruling

Damages in This Case Could Exceed $100 Million


LOS ANGELES, Jan. 16, 2009 (GLOBE NEWSWIRE) -- Seeking to vindicate its legal rights related to the Los Angeles City Council's vote to prematurely terminate its environmental review of the Las Lomas Project, Las Lomas Land Company today announced its decision to appeal the ruling by Superior Court Judge David P. Yaffe dismissing its lawsuit.

Last month Judge Yaffe ruled that Las Lomas could not proceed with its current complaint against the City of Los Angeles alleging that the City Council acted unlawfully in March 2008 when it halted the environmental review process for arbitrary and discriminatory reasons. With the filing of this appeal, the Court of Appeal will now determine whether Las Lomas's lawsuit may proceed.

"We believe our claims are meritorious and are convinced that there are fundamental legal issues that must be resolved by the Court of Appeal. We were disappointed in the court's decision for ourselves, for the residents of Southern California, and for all those who recognize that the City Council broke the law. We are confident that the Court of Appeal will recognize that the City must answer for its illegal decision to halt its review of the Las Lomas Project," said Carlyle W. Hall, Jr., counsel for Las Lomas.

An appellate court ruling in favor of Las Lomas would be consistent with the City Attorney's prior and repeated warnings to the City Council that the City would be vulnerable to litigation if it failed to complete the environmental review process. "It is disappointing that City resources and taxpayer dollars are being expended when the likelihood of Las Lomas prevailing in its appeal is very good. The real losers are the taxpayers who will have to compensate Las Lomas because the City's improper conduct violated its state and federal constitutional rights to equal protection and due process. The damages in this case could exceed $100 million," added Mr. Hall.

Las Lomas plans to be the region's first smart growth community and the northern gateway to the San Fernando Valley. It would be an antidote to urban sprawl, with jobs, schools, parks, museums, shops, restaurants and community activities all within walking distance of one another, reducing the need for car trips to the rest of the Valley and region.

The benefits for the region are considerable. The Las Lomas project will create 9,000 direct jobs, 22,000 indirect jobs, over 1,300 construction jobs and over $1.3 billion in annual wages. The smart growth community will add $22 million per year in City General Fund revenue and will have a $1.5 billion Project Labor Agreement.

"Las Lomas is a growth model for the region's future; it is not going to go away just because of one court decision," said Edward Park, spokesperson for Las Lomas.


            

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