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CONFIDENTIAL

Jan. 3, 1998

Administrative Code
Misuse of Funds

Confidential

Settlement –  $10,000,000

Judge

Charles W. McCoy Jr.

Court

L.A. Superior Central


Attorneys

Plaintiff

Richard I. Fine


Defendant

Jerry McCormick

Shelley Ilene Smith


Experts

Plaintiff

Thomas A. Rubin
(technical)

Defendant

Roger B. Shlonsky
(technical)

Douglas Farrow
(technical)

Facts

During the three budget years 1992-1993, 1993-1994 and 1994-1995, the defendant City Council, through the use of the city budget for those years, transferred a totoal of $90 million from the Special Parking Revenue Fund (SPRF) to the General Fund, which monies were allegedly used for pusposes other than those set forth in the Administrative Code, Section which defines the SPRF Division 5, Chapter 6, Article 2, Sections 5.117, 5.118 and 5.119. The defendant alleged the money was used for transportation programs previously paid for by the General Fund. The plaintiff brought this action against the city alleging misuse of funds.

Settlement Discussions

Settlement discussions were not disclosed.

Damages

The plaintiff claimed $90 million in damages as monies illegally taken.

Other Information

The settlement was reached approximately two years and two months after the case was filed, while the case was in trial. Per plaintiff, settlement occurred through the "able assistance" of Judge Charles McCoy, Jr., the trial judge, with the consent of the parties.

Length

BENCH: approx. seven days (eight days pe


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