Why two attorneys are appealing San Bernardino’s bankruptcy … – San Bernardino County Sun

SAN BERNARDINO >> Almost five months after a U.S. Bankruptcy Court judge confirmed the citys bankruptcy exit plan, San Bernardino has settled all but two of the cases appealing that decision.

Theres no definite timeline for the appeals, but they could appear in court within a few months. After that, if both sides remain entrenched, appeals could last years, with attorneys in the case predicting a trip to the U.S. Supreme Court and a possible upheaval of the bankruptcy plan the city spent four years and $20 million crafting.

If the appeal is successful, it could upset the entire judgment, said attorney Gary Casselman, who is appealing the case. Theres risk for everyone. Thats why cases settle, because everyone looks over their shoulder at what could go wrong. But so far we havent settled.

Both attorneys cases stem from police lawsuits regarding use of force. Under the citys plan, their clients would receive 1 cent for every dollar a jury awards them.

And they also would be blocked from collecting any money from city employees a court might consider responsible for damages that occurred before the bankruptcy filing.

My client has had eight or nine surgeries and is at risk of losing her arm or at least elbow because of what happened, Casselman said. She might lose her house. And I think the city could afford much more, when their bankruptcy attorneys cost ($20 million).

Casselmans client, Rovinski Renter, alleges that in 2010 a San Bernardino police officer responded to a call of an unruly ex-tenant at Renters house. She told the officer in salty language to remove the tenant, and the officer allegedly grabbed Renter by the arm, breaking it. She was then handcuffed without medical care for 30 minutes, according to the lawsuit.

City Attorney Gary Saenz said he cant discuss the appeals because theyre ongoing litigation, and he cant yet give details of the two other appeals related to police use of force that were recently settled.

We have two appeals pending, he said. We still have, apart from the appeals, a number of claims were attempting to make settlements with those. Those that have not been settled will go through an ADR alternative dispute resolution process, which is essentially a mediation and an unbiased third party mediator will be selected. We havent laid out the specifics of that yet, but that will come shortly. Hopefully, well get a lot of the cases resolved through that process.

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Saenz has previously said the city had to do what was best for city residents, and he agreed with Judge Meredith Jury that there was no legal reason civil rights creditors should be paid more than others who have lawsuits against the city.

The city shed $350 million in obligations during the bankruptcy, which it filed after discovering a $45 million deficit for the 2012-13 fiscal year.

But its not just about the citys plan to only pay 1 percent of what it owes, said attorney Donald Cook, whose claim concerns a pet dog shot by a police officer. Its that the plan takes what he says is the unprecedented step of blocking the city from suing the police officer responsible or the police chief.

The city filed for bankruptcy, Cook said. In bankruptcy, you wipe out the debts of debtors. But the police chief and (the officers) didnt file for bankruptcy. A bankruptcy court cant adjudicate my clients claim against them.

In other municipal bankruptcies which are rare courts have avoided ruling on whether creditors can collect debts from the individual employees named in claims.

In addition, the U.S. Supreme Court ruled in 2011 in a case springing from the dispute of Anna Nicole Smith and the son of her late husband that bankruptcy courts have limited powers because theyre created by Congress, rather than specifically created by the Constitution.

That means a district court should decide the issue, Cook said.

In court, the city has argued that allowing continued lawsuits against officers for pre-bankruptcy cases would lead to an exodus of officers in a city already struggling to fight its high crime.

And other cities, contemplating bankruptcy but worried about still being on the hook for judgments against their employees, will join legal enthusiasts in closely tracking the case, Cook predicted.

Thats the big issue, he said. I think it will get a lot of attention, whoevers reviewing it at the higher court level, because this is something that a lot of municipalities and counties are worried about.

Cooks clients, Hector Briones and Roseland Harding, allege that in 2009, San Bernardino police responding to a cellphone 911 call traced incorrectly to their address forced open a locked gate and opened a closed door to enter their home. Their dog then ran up in a friendly way, according to Cook and an officer fatally shot the dog, Mammas.

Both the cases being appealed and two others that were recently settled have been delayed since before the city filed for bankruptcy in 2012, waiting for the bankruptcy case to resolve.

Attorney Duane Folke said the prospect of continuing to wait longer potentially years led his client, Paul Triplett, to settle this month.

I would have liked to have seen it be a little bit more equitable for my client not just me as the attorney, obviously, my poor client was put into a coma for three days and had a number of bones broken and a lot of maladies that are the result of what happened to him, Folke said. There are no winners here, thats for certain. But hopefully everybody will be able to get a fresh start.

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Why two attorneys are appealing San Bernardino's bankruptcy ... - San Bernardino County Sun