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Constitutional Law
Declaratory Relief
Transfer of Funds

Raymond Veltman v. State of California, et al.

Published: Apr. 19, 1997 | Result Date: Jan. 7, 1997 | Filing Date: Jan. 1, 1900 |

Case number: BC138719 –  $50,000,000

Facts

In 1995, the California state legislature enacted SB727, which allowed the transfer of $50 million in Bradley Burns sales tax from the local transportation fund, MTA, to the county of Los Angeles to be used in the general fund. The statute also allowed the county of Los Angeles to borrow $150 million from the local transportation fund to be used in the county's general fund. $50 million was transferred to the county pursuant to this legislation. Plaintiff Raymond Veltman brought a taxpayer action against the state of California, the governor, the MTA, and the county of Los Angeles based on constitutional theories of recovery.

Settlement Discussions

The plaintiff made a settlement demand for $52 million. The defendants' settlement offers, if any, were not disclosed.

Damages

The plaintiff sought declaratory relief, injuctive relief and damages of $52 million to be transferred back to the MTA by the County of Los Angeles, plus interest.

Other Information

The verdict was reached approximately two years and two months after the case was filed. The state and the governor were dismissed at the conclusion of the plaintiff's case. MEDIATION: A mediation was held in March 1996 before Maurice Levy of JASOP. It did not resolve the matter. (Per the plaintiff, the county did not send to the mediation any person with authority to settle the case.)

Length

2 days


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