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Contracts
Breach of Contract
Bond Payments

Ambac Assurance Corporation v. City of Hercules, Hercules Redevelopment Agency, Myrna De Vera, John Delgado, Gerard Boulanger, William Wilkins

Published: Apr. 14, 2012 | Result Date: Mar. 13, 2012 | Filing Date: Jan. 1, 1900 |

Case number: CIVMSN12-0182 Settlement –  Equitable Settlement

Court

Contra Costa Superior


Attorneys

Plaintiff

Jerrold E. Abeles


Defendant

John H. Knox

John W. Killeen
(Office of the Attorney General)


Facts

Ambac Assurance Corp. sued the City of Hercules after the city announced it would default on $2.4 million in redevelopment bond payments. Ambac alleged that city officials had illegally transferred $4.1 million of property tax revenue from Hercules' redevelopment agency to the city's general fund rather than using the money to pay back redevelopment bondholders. The day after filing its complaint, Ambac sought a TRO, which the court denied.

Result

The parties settled. The settlement consisted of two parts, one of which is confidential. The other part includes a writ of attachment, in the amount of $6.5 million, on two city owned parcels, worth roughly $10 million.


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