Tag Archives: California High-Speed Rail Authority et al. v. The Superior Court of Sacramento County

Court Allows California High-Speed Rail to Violate Terms in Voter-Approved Bond Measure: Press Release from Legal Team

On July 31, 2014, the California 3rd District Court of Appeal overturned two lower court decisions and sided with the California High-Speed Rail Authority and Governor Jerry Brown. It allowed the California High-Speed Rail Authority to borrow $9 billion for high-speed rail as authorized by Proposition 1A, approved by voters in November 2008. Here is the decision:

3rd District Court of Appeal Decision: California High-Speed Rail Authority et al. v. The Superior Court of Sacramento County (John Tos, Real Party in Interest) 

Here is a press release from the legal team that argued against the California High-Speed Rail Authority. They argued that the Authority had violated some of the provisions of Proposition 1A and therefore could not borrow money by selling bonds as authorized by voters in 2008 under Proposition 1A.

 

August 1, 2014
For Immediate Release

COURT OF APPEAL ALLOWS HIGH-SPEED RAIL TO VIOLATE BOND MEASURE

The Third District Court of Appeal late yesterday overturned two trial rulings that had hamstrung Californiaʼs still-embattled High-Speed Rail project. The Court ruled that “The Legislature appropriated the bond proceeds based on the preliminary funding plan, however deficient, and there is no present duty to redo the plan.”

Plaintiff’s lead counsel, Michael Brady, was disappointed with the ruling. He said “The voters approved Proposition 1A only because it included stringent requirements to protect the state from financial risk. The Court ruled that although the project did not meet the requirements, taxpayers have no remedy now. They can only sue after many more tens of millions of dollars are spent on design and analysis.”

Stuart Flashman, co-counsel added, “The court has essentially allowed the Authority to ignore promises it, and the legislature, made to Californiaʼs voters. It bodes ill for votersʼ willingness to trust such promises in the future. Supreme Court review appears warranted.”

In November 2013, Judge Michael Kenny ruled that the High-Speed Rail Authorityʼs Funding Plan failed to properly certify, as the bond measure required, that all needed environmental clearances had been obtained and sufficient funding was available to complete the Merced to San Fernando Valley segment of the project.

The Tos v. California High-Speed Rail Authority case was brought by a farmer, a rural homeowner and Kings County. It asked the Court to block the Authority from using bond funds because the project failed to meet the ballot measureʼs requirements.

In addition, the appeals court reversed Kennyʼs ruling that blocked the issuance of bonds because of another failure to satisfy bond measure requirements. In California High-Speed Rail Authority et al. v. All Persons Interested, the appellate court held that no evidence was needed to show that it was “necessary or desirable” to issue the bonds – effectively erasing that provision from the ballot measure.

Click here to access documents from the two cases. Three other claims in the Tos case are still pending in the trial court.

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May 23 Is Date for Oral Arguments: California High-Speed Rail Authority et al. v. The Superior Court of Sacramento County

The 3rd Appellate District Court for the State of California announced on April 28 that oral arguments in California High-Speed Rail Authority et al. v. The Superior Court of Sacramento County are scheduled for Friday, May 23.

This is the case which started when California Governor Jerry Brown, California Attorney General Kamala Harris, California Treasurer Bill Lockyer, and the California High-Speed Rail Authority asked the California Supreme Court under an extraordinary petition to allow the state to issue (sell) Proposition 1A bonds to fund California High-Speed Rail. (In October 2013, a Sacramento County Superior Court judge had blocked the sale of the bonds through two decisions ruling that the California High-Speed Rail Authority has failed to comply with Prop 1A.) The California Supreme Court wasn’t impressed: it sent the Governor’s petition to the appeals court where it belonged.

Track the case at this link: California High-Speed Rail Authority et al. v. The Superior Court of Sacramento County – Case Number C075668

Supporting the Rule of Law:

Members of Citizens for California High-Speed Rail Accountability (CCHSRA)
County of Kings
Howard Jarvis Taxpayers Association
County of Kern
Eugene Voiland
Kings County Water District
Union Pacific Railroad Company
First Free Will Baptist Church in Bakersfield

Supporting Governor Brown and the California High-Speed Rail Authority:

Peninsula Corridor Joint Powers Board
San Mateo County Transit District
Metropolitan Transportation Commission (San Francisco Bay Area)
Santa Clara Valley Transportation Authority
City and County of San Francisco
State Building and Construction Trades Council of California, AFL-CIO
Cathleen Galgiani, member of the California State Legislature
Los Angeles County Metropolitan Transportation Authority
Southern California Association of Governments

Court Rejects Governor Brown’s Arguments to Skirt Court Decision and to Let State Borrow Money for California High-Speed Rail

While Governor Brown and a majority in the California legislature seem to tolerate the California High-Speed Rail Authority’s violations of state law, the judicial branch of California government recognizes that the Authority is failing to comply with Proposition 1A.

On April 15, 2014, the California 3rd District Court of Appeal rejected an extraordinary appeal backed by Governor Jerry Brown, Attorney General Kamala Harris, Treasurer Bill Lockyer, and the California High-Speed Rail Authority. These top state officials wanted the appeals court to suppress two decisions of a lower court so the state could borrow money for the High-Speed Train Program by selling bonds.

The Docket (Register of Actions) for California High-Speed Rail Authority et al. v. The Superior Court of Sacramento County (Case No. C076042) states the following:

The Petition for Extraordinary Writ of Mandate or Other Appropriate Writ is denied. The standard of review for a judgment on the pleadings is the same as for a judgment following sustaining of a demurrer; we look only to the face of the pleading under attack. [Citations.] … All facts alleged in the complaint are admitted for purposes of the motion and the court determines whether these facts constitute a cause of action. [Citations.] (Hughes v. Western MacArthur Co. (1987) 192 Cal.App.3d 951, 954-955.) The parties’ motions for judicial notice are denied. RAYE, P.J. (RoBu) … Case Complete.

In 2013, a Sacramento County Superior Court judge found that the California High-Speed Rail Authority failed to comply with provisions of Proposition 1A, the “Safe, Reliable High-Speed Passenger Train Bond Act,” approved by 52.7% of California voters on November 5, 2008. (See links to these court decisions, below.)

Governor Brown and the California High-Speed Rail Authority wanted the court to disregard the promises the state legislature made to California voters when it placed Proposition 1A on the ballot. In their mindset, the vote of the people to authorize the state to borrow money for California High-Speed Rail overrides the burden to actually comply with the law. In fact, desperate supporters of the project are increasingly making this “democratic” argument.

But we still live in a constitutional republic, not a democracy, and the courts will not allow the California High-Speed Rail Authority to spend money in a way that violates the law. It does not matter how many politicians or political activists support the bullet train or how “important” or “innovative” this $68 billion San Francisco to Los Angeles train will be for humanity.

Ultimately, the California High-Speed Rail Authority will have to follow the law, ask voters to change the law, or shut down operations until new people are governing the state.

News Media Coverage

Appeals Court Denies Petition, Clears Way for High-Speed Rail Trial by Tim Sheehan in the Fresno Bee – April 16, 2014

Court Refuses Appeal of High-Speed Rail Project: Part 2 Prop 1A Lawsuit Will Proceed by Kathy Hamilton in www.Examiner.com – April 16, 2014

What is Governor Brown Trying to Stop?

The coalition of individuals, local governments, business organizations, and taxpayer associations (including Citizens for California High-Speed Rail Accountability) that won this April 15, 2014 decision have already won in court as a plaintiff in a Prop 1A compliance lawsuit against the California High-Speed Rail Authority and as a defendant in a bond validation lawsuit filed by the California High-Speed Rail Authority. Read those decisions here:

November 25, 2013 California High Speed Rail Authority Bond Validation Lawsuit Ruling

High-Speed Rail Authority and High-Speed Passenger Train Finance Committee, for the State of California v. All Persons Interested in the Matter of the Validity of the Authorization and Issuance of General Obligation Bonds to be Issued Pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century and Certain Proceeding and Matter Related Thereto.

August 16, 2013 Tos v California High-Speed Rail Prop 1A Ruling

November 25, 2013 Tos v California High-Speed Rail Prop 1A Remedy

John Tos, Aaron Fukuda, County of Kings v. California High Speed Rail Authority, et al.

In addition, the same coalition has also won a court decision concerning the inclusion and consideration of arguments in Tos v California High-Speed Rail regarding the promised travel time requirements in Proposition 1A, such as 2 hours 40 minutes from San Francisco to Union Station in Los Angeles.

March 4, 2014 Ruling on Submitted Matter: Motion for Judgment on the Pleadings