Archive | Contra Costa County

BART Strike Update: Former BART Director Michael Bernick Calls for Parties to Continue Negotiations, Not Strike

Oakland–Former BART Director Michael Bernick today called for BART management and unions to continue negotiations, if no agreement is reached by 12:00 a.m. July 1, according to a news release just issued by the transit district and its communications agency Singer Associates Public Relations and Public Affairs.

 “In 1991, 1994 and 2009 the parties continued negotiating past the strike deadline, and a settlement was reached without a strike. The same process at least should be tried this time,” said Bernick, who formerly served as  a director of the BART transit system.

The former director noted that the collective bargaining process by which the parties negotiate with the threat of a Bay Area transit strike needs to be changed by the state legislature. The same dynamics of negotiations to the end and threat of a transit strike have occurred in each of the negotiations over the past three decades. The current process is a disservice to Bay Area residents, and over the past negotiations has not resulted in better settlements for the BART workers.

Regarding the structure of a settlement,  Bernick noted that Governor Brown has set a structure for pension contributions that should guide BART negotiations.

Bernick also urged other politicians to stay out of the process. “The BART Board is a responsible body and should be given the authority to handle the negotiations.”

Bernick was elected to the board of directors of the Bay Area Rapid Transit rail system in 1988 and soon began to note the lack of land development linked to rail. With UC Berkeley Professor Robert Cervero, he established a research center at UC-Berkeley focused on the link of land use and transit, and together they published a series of articles leading to their 1996 book, Transit Villages in the 21st Century.  The book helped to develop and popularize the transit village concept.

Continue Reading

Top CPUC Attorney Calls upon Attorney General Kamala Harris to Investigate Charges Against Him of Unethical Action in PG&E San Bruno Explosion Case

This evening there is a growing firestorm in the California Public Utilities Commission legal department as attorneys are openly questioning the ethical behavior of the CPUC’s General Counsel Frank Lindh in removing attorneys from the penalty phase against PG&E for its gross negligence in the San Bruno explosion and fire.

The top public safety division attorneys quit the case this past week after spending nearly three years of their careers attempting to bring Pacific Gas & Electric Co. to justice for the death and destruction caused by its failure to maintain its pipeline in the center of the City of San Bruno.

The safety division attorneys rebelled and had refused to put their names to a CPUC document because they told the CPUC General Counsel Frank Lindh of its illegality.  Insiders say the overwhelming majority of attorneys in the CPUC are now lining up against Lindh and in support of their colleagues.  They are privately raising issues of conflict of interest between CPUC President Michael Peevey, PG&E and Frank Lindh, who formerly was a PG&E employee prior to joining the CPUC.

A number of news stories by the San Francisco Chronicle’s Jaxon Van Derbeken, NBC 11 investigative reporters Tony Kovaleski and Liz Wagner, Mercury News Reporter Joshua Melvin and editorials in the Merc News and Sacramento Bee have shed light on CPUC conflicts and now the State agency appears to be spinning out of control.

Last night a special investigative report by NBC 11 reporters Kovaleski and Wagner showed CPUC President Peevey at a PG&E employee union event honoring him for his ‘leadership in safety’ which raises questions about conflict of interest as well as video footage that shows his possibly illegal ex-parte contact with CPUC safety division director Jack Hagen.

There is a growing revolt and more news and action is expected this week from attorneys inside the CPUC as well as parties in the case against PG&E, which includes its own Division of Ratepayer Advocates,  consumer advocate TURN, the City and County of San Francisco’s City Attorney Dennis Herrera, and the City of San Bruno, which has called upon attorney General Kamala Harris—followed by the same call from Lindh—to investigate the CPUC immediately.

The conflict has broken out into an open dispute this week when Lindh found he was talking to an unfriendly forum—his own staff—when he gave the keynote speech Monday at a legal conference his agency is hosting, according to a report first published by The Recorder reporters Max Taves and Cheryl Miller yesterday and picked up today in the American Bar Association Journal and Law.Com.

Attendees from around the country watched as top in-house CPUC lawyer Frank Lindh was heckled during his speech about staff attorneys at a “hypothetical” utility regulator who lacked judgment and loyalty, the Recorder reports.

Specifically, his speech discussed what duty of loyalty is owed by a staff lawyer who strongly disagrees with a client’s legally permissible position on a rate-setting proposal.

“My solution in this circumstance would be to ask for a reassignment, but also to take steps to make sure I am not leaving my client in the lurch by withdrawing at the last minute,” said Lindh. “In the end, it all comes back to loyalty.

Under the canons of ethics, I simply cannot be disloyal to my client, even in the circumstance where I disagree strongly with my client’s wishes.”

His comments at the National Conference of Regulatory Attorneys conference in San Francisco were apparently relevant to the recent reported reassignment of an entire team of CPUC lawyers. They were responsible for handling litigation over Pacific Gas and Electric Co.’s culpability in a 2010 natural gas explosion and fire that killed eight people and destroyed 38 homes.

The four-lawyer team had taken a position that supported the city of San Bruno’s call for more than $2 billion in fines to be imposed on the gas company, and the city asked earlier this month for the state attorney general and lawmakers to look into the lawyers’ reassignment.

In a Friday interview, Lindh also said the AG should investigate—to set the record straight—and said he “begged the attorneys to stay on the case,” the Bay Area News Group reported in an article published by the San Mateo County Times.

They withdrew from the case,” Lindh said, “and they left me with the obligation to fill in behind them.”

However, in an email to Lindh leaked to the newspaper that was also sent Friday, assistant CPUC general counsel Harvey Morris said the team had not sought reassignment. He said they had refused to sign a brief they believed to be unethical, apparently over concerns that it made unlawful recommendations about the penalties that should be assessed against the gas company in the San Bruno case, according to the Bay Area News Group article and other media reports.

Because you did nothing to resolve our ethical concerns, one attorney asked to be taken off the case, and then you claimed that all of us asked to be reassigned,” Morris wrote.

Frank Lindh, CPUC General Counsel Accused of Conflicts with PG&E, calls upon California Attorney General to Investigate Him, CPUC Actions

 

Continue Reading

FEMA To Replace California Forest With Chemical Wasteland

It’s no secret that wildfires are becoming more common. Residents of states like California, Wyoming, New Mexico and Colorado have become accustomed to daytime smoke and sudden evacuations. Still, the developers who want their money continue to build homes and businesses in high risk areas.

Now, in California, the Federal Emergency Management Agency (FEMA) and land grant recipients the University of California at Berkeley (UCB), City of Oakland and East Bay Regional Park District (EBRPD), want to mitigate the threat by chopping down the trees and leaving behind a vacant lot soaked in Monsanto herbicides.

Here’s how FEMA describes the project:

The proposed projects include the removal of non-native trees (primarily eucalyptus, Monterey pine, and acacia), chipping cut trees, and leaving many of the chips in place for sediment and invasive weed control. The agencies would apply herbicides to the cut stumps to prevent resprouting. Additionally, they might reuse large logs to control erosion on slopes and, in some areas, might thin or remove native vegetation such as coyote brush. The agencies might burn cut brush and branches in piles and might use further control measures such as grazing or herbicide spraying on foliage.

According to estimates by MillionTrees.me, a blog project dedicated to saving trees in the San Francisco Bay Area, the project would result in the elimination of over 70,000 perfectly healthy California trees. FEMA claims that, though the area will be left covered in approximately 24 inches of wood chips, it will eventually replant itself with native grasses and plants. There are plenty of reasons to doubt this assumption, however, and they come in bottles made by Monsanto.

“The stumps of eucalypts and acacia will be sprayed with an herbicide (Garlon with the active ingredient triclopyr) soon after the trees are cut down to prevent resprouting,” explains MillionTrees. “An estimated 1 – 2 ounces of formulated herbicide will be required for each stump. Based on an experiment conducted by East Bay Regional Park District, an estimated 5% of the trees will require retreatment of subsequent resprouts. They are therefore predicting that between 633 and 1,266 gallons of herbicide will be required to prevent resprouting if only 5% of the stumps require retreatment as they claim…Herbicide (Roundup with active ingredient glyphosate) will also be sprayed to control non-native vegetation…”

In short, the planet will lose almost 100,000 perfectly healthy trees, and Monsanto will make a tidy profit by providing the government with the toxic chemicals it needs to prevent them from regrowing.

Read more: http://www.care2.com/causes/fema-to-replace-california-forest-with-chemical-wasteland.html#ixzz2W3vFyhDi

by Beth Buczynsk, Care2.com

Continue Reading

California Center for Sustainable Energy Rolls Out Plug in Vehicle Presentation in San Francisco

San Francisco residents learned about recent advancements in the electric vehicle revolution sweeping across California this week at a presentation by California Center for Sustainable Energy.  The event featured presentations and an owner panel discussion on plug-in electric vehicles (PEVs) as well as test-drives of some of the newest models for 2013.

“The Future is Electric: Plug In and Get There” was sponsored by the California Center for Sustainable Energy, SF Environment and San Francisco Clean Cities Coalition.

California is the nation’s largest PEV market with roughly 35 percent of the U.S. total. During the fourth quarter 2012, sales of PEVs in California reached a record-setting 2.5 percent of all new cars purchased or leased in the state.

During the workshop, Colin Santulli a CCSE transportation program manager outlined the financial and environmental benefits of PEV ownership and the currently available incentives. CCSE administers the statewide Clean Vehicle Rebate Project, a program of the California Air Resources Board. Since 2010, CCSE has issued more than $42 million in vehicle incentives and helped to educate Californians on the availability and benefits of zero-emission vehicles.

“By making the switch to cleaner, more efficient plug-in electric vehicles, individuals can reduce their use of petroleum and help create cleaner air for all of us,” Santulli said. “This workshop was a great opportunity for people to learn about the first-hand experiences of their neighbors who already own PEVs.”

Representatives from Pacific Gas & Electric and ICF International gave presentations aimed at consumers considering making the switch to a PEV. After the presentations, a PEV fair on Fulton Street included vehicle displays and test-drives and exhibit booths featuring PEV technologies, car-sharing and alternative transportation. Cars available included the Chevy Volt, Nissan Leaf, BMW ActiveE and Ford Focus.

The California Center for Sustainable Energy (CCSE) is an independent, nonprofit organization that accelerates the adoption of clean and efficient energy solutions including administration of the statewide Clean Vehicle Rebate Project for the California Air Resources Board. For more information and workshop listings, visit www.energycenter.org or call 858-244-1177.

 

Continue Reading

Santa Clara Supervisor Candidate Teresa Alvarado Lobbied for PG&E—Now Advocates Reform, but in the Past She Lobbied for 37% Energy Rate Hikes

Currently promoting herself as ‘the candidate for reform,’ District 2 Santa Clara County Board of Supervisors candidate Teresa Alvarado was once a lobbyist for Pacific Gas & Electric Co., where her job was to defend residential and commercial utility price increases of up to 37 percent for Bay Area residents, records show.

Today, Alvarado likes to position her role at PG&E as an advocate for solar energy, but records show she was also a government relations lobbyist for the monopoly utility. One of her jobs was to advocate for rate hikes and urge consumers to reduce energy consumption to decrease utility bills.

Just months before PG&E would announce that it was declaring bankruptcy, records from the Los Altos City Council meeting of Feb. 27, 2001, note that “Teresa Alvarado, Public Affairs Representative from Pacific Gas and Electric, provided the Council with a history of deregulation in the industry and identified one of the major reasons for the electric and gas shortages and increased costs as supply and demand, noting that energy demands have grown faster than anticipated. She distributed and summarized a pamphlet entitled “An Important Energy-Saving Message from Pacific Gas and Electric Company” as well as an outline of her comments, as well as an outline of her comments, dated February 27, 2001, which were incorporated into the record.”

The Los Altos Town Crier newspaper reported that when Alvarado was a lobbyist for PG&E, PG&E had a program called “Riding out Summer 2001,” where she explained rate increases PG&E sought from the State of California.  At that time, the California Public Utilities Commission set new electric rates which increased small commercial users’ bills an average of 37 percent. Residential customers saw an average increase of 7 to 37 percent depending on usage.

“This is not a pleasant discussion,” said Teresa Alvarado, PG&E representative told the The Los Altos Town Crier in its May 23, 2001 edition. “We have a crisis this summer and you can make a difference by reducing 10 percent of your energy use.”

These days, Alvarado, a candidate for Santa Clara County Board of Supervisors District 2 in a run-off election with Cindy Chavez, to succeed disgraced former Santa Clara County District 2 Supervisor George Shirakawa Jr., is running to reform county government that she said allowed Shirakawa’s secretive ways to thrive, while Chavez is running on her accomplishments as a two-term San Jose City councilwoman.

One of Alvarado’s first direct mail pieces to voters in District 2 says one of her platforms to move half the Supervisor’s meetings from the daytime until after 6 p.m. “when community members can attend—not just paid lobbyists.”

Alvarado’s mailer positions her as “The Reformer We Need.”  Whether she is a reformer or a lobbyist cloaking herself in reformer’s clothing remains to be seen.

 

The Many Faces of Theresa Alvarado

Continue Reading

City of San Bruno Calls for $3.85 Billion Penalty Against PG&E for San Bruno Blast and Fire

The City of San Bruno today filed its legal arguments today with the California Public Utilities Commission to levy the maximum financial pre-tax fine and penalty of $3.85 billion against Pacific Gas & Electric Co. for its gross negligence that caused the largest natural gas disaster in U.S. history on Sept. 9, 2010.

San Bruno’s filing is in response to the CPUC safety division’s proposed penalty of $2.25 billion, which was announced with much fanfare in May, but has since been revealed to provide huge credits and significant tax benefit rewards to PG&E.

This week all the CPUC safety division attorneys refused to sign the CPUC’s $2.25 billion penalty recommendation of Jack Hagan, director of the CPUC’s safety division, and all have resigned in protest over what one of them called Hagen’s “unlawful” proposal that was “contrary to what our team had worked to accomplish in the last two and a half years.”

PG&E should be forced to pay the maximum for its systematic safety failures that caused the 2010 explosion and fire, which took the lives of eight citizens of our city, injured countless more, destroyed 38 homes, and left a hole in the heart of San Bruno,” said Mayor Jim Ruane.

“We challenge the CPUC to not let PG&E off the hook for this devastating and entirely avoidable man-made disaster,” Ruane said. “The state and the nation are watching whether the CPUC, the agency tasked with protecting public safety, is capable of carrying out its duty.”

Given the scope and magnitude of PG&E’s misconduct, San Bruno is calling on PG&E to absorb the maximum financial consequences that the CPUC safety division experts determined it can bear.  To avoid giving PG&E the benefit of significant state and federal tax breaks, San Bruno’s legal filing calls for PG&E to be penalized $2.45 billion in after-tax dollars – a total of $3.8 billion –with no credits for past expenses.

San Bruno also demanded the CPUC direct PG&E to adopt and fund a series of remedial measures to ensure systemic regulatory change in the future. These include $5 million per year for a “California Pipeline Safety Trust,” and an Independent Monitor to make sure PG&E follows its own safety plan in the face of possible lax enforcement, and the installation of lifesaving Automated Shutoff Valves.

This week’s filing comes on the heels of significant turmoil at the CPUC after the resignation of the CPUC’s safety division attorneys who worked on the case since the beginning of the CPUC process, leaving no CPUC legal experts with detailed knowledge of the case during the final penalty phase against PG&E.

Ruane said the resignations of the CPUC’s safety division attorneys underscore the Commission’s ongoing illegal and unethical actions.  He called for an immediate investigation by the California Attorney General and the State Legislature to restore transparency and fairness.

Robert Cagen, one of the attorneys who resigned, told the media that he could not continue working on the San Bruno penalty briefs after  concluding that the CPUC safety division’s  recommendations were unlawful and contrary to what his team had worked to accomplish in the last two and a half years.

Unlike a traditional “fine,” which is not tax deductible and is to be paid to the State of California, the CPUC’s so-called penalty is  100 percent tax-deductible and would be reduced to $1.3 billion after taxes, meaning state taxpayers will lose–not gain–tax revenues as a result. PG&E would also be allowed to reduce its penalty by amounts already spent to date on safety improvements since 2010, resulting in the overall penalty falling by another $900 million.

Ruane said if the CPUC’s five-member commission adopts the CPUC recommendation, PG&E would literally walk away from this man-made disaster without consequence.

“Nearly three years after this devastating tragedy, the only way to prevent future tragedies is by penalizing PG&E to the maximum,” Ruane said. “Unfortunately, the only way to ensure PG&E will finally take public safety seriously is by jeopardizing their bottom line.”

Continue Reading

Recognized Business and Community Leader Dennis Wu Elected Chair of Recology Board of Directors

Internationally recognized business leader and accountant Dennis Wu is the newly elected chairman of Recology, the leading independent employee-owned recycling and landfill diversion services company in the western United States.

Mr. Wu is the managing partner and co-founder of WuHoover & Co., a professional CPA firm, and has served as a member of the Recology board for the past five years.

He founded WuHoover after a 37-year career at Deloitte & Touche where he served as partner-in-charge of Deloitte’s Enterprise Group in Northern California, managing partner of the San Francisco Emerging and Midsize Business Group, national managing partner for its Southeast Asia Desk Program, and national managing partner for its Greater China Desk Program. He is a former president of the Commonwealth Club and a former member of the board of directors of the San Francisco Chamber of Commerce and San Francisco Ballet.

“We are pleased and honored that Dennis is the new chair of our board,” said Recology President and CEO Michael Sangiacomo. “Dennis’s knowledge of our business, coupled with his independent and visionary thinking, brings the type of independent leadership we are seeking for our board of directors.”

Wu’s experience ranges from serving start up, privately held, high growth, and publicly listed companies in a variety of industries including not-for-profit, distribution, electric and gas, financial services, health care, manufacturing, service oriented, and venture capital companies. He also led numerous diversity projects while at Deloitte and served as one of five national leaders for the firm’s Diversity initiative as well as regional diversity leader for Northern California, Hawaii, and the Pacific Northwest.

In April, insurance executive Larry A. Colton, CEO of G2 Insurance Services, and recycling executive George P. McGrath, EVP and COO of Recology, were named to Recology’s board of directors.

Recology is an employee owned integrated resource recovery and landfill diversion company that provides collection, recycling, compost, consulting and disposal services to homes and businesses in the western United States.

The company manages municipal processes and services, including urban cleaning services, collection, sorting, transfer, recovery, and landfill management.

The company name, Recology, reflects its unique success record in driving resource recovery to unparalleled levels through recycling and composting.

Recology companies operate in California, Nevada, Oregon and Washington coordinating dozens of recycling programs to recover a variety of materials. Recology programs have been replicated throughout the country and serve as a national model for resource recovery initiatives.

Recology is:
• The largest employee-owned company in the resource recovery industry, partnered with over 116 communities;
• Parent to over 40 subsidiaries that provides integrated services to over 670,000 residential and 95,000 commercial customers in California, Oregon, Nevada and Washington;
• Recognized as the industry leader in resource recovery, having established the first and largest curbside yard trimmings and food scraps collection program in the country.

Recology is 100 percent owned by the Recology Employee Stock Ownership Plan (ESOP) and not by any outside investors.

Recology has been honored multiple times by the national Employee Stock Ownership Plan Association for the quality of its ownership program and its positive impact on corporate performance.

The Recology ESOP makes it easy for Recology to focus on providing long-term, sustainable solutions to our customers. It strengthens teamwork and collaboration by tying employees’ performance to the overall success of the company.

As the largest employee-owned company in our industry, Recology believes that its individual and collective hard work and dedication directly correlates to its long term success

Continue Reading

Strike by Concession Workers at AT&T Park Will Not Impact Fans, Centerplate Says of Unite Here Local 2 One Day Strike at San Francisco Giants Game

San Francisco—AT&T Park concessionaire Centerplate said a strike at today’s baseball game by Local 2 Unite Here will not interrupt service to fans at the ballpark.

“Centerplate is prepared with senior managers and additional staff to ensure fans enjoy today’s baseball game and can get hotdogs, garlic fries, beer, soft drinks and other foods as they normally would,” said Centerplate spokesman Sam Singer.

Centerplate believes “this labor action by Local 2 is unnecessary, unfortunate and illegal.  The timing of the strike, coming as it does on Memorial Day Weekend, continues a disturbing pattern of disrespect for the military, veterans and servicemen and servicewomen by the UNITE HERE leaders.  Remember this is the same union whose President previously made derogatory remarks against veterans and veteran’s organizations during negotiations,” Singer said.

“Centerplate values our employees. That is why they are already the highest paid staff in the concession business, earning between $15 and $20 an hour, receiving full healthcare and other benefits for their part time work,” he added.

Centerplate has bargained in good faith and offered union members:

  • A 4.5 percent ratification bonus for those who worked more than 40 games in 2012
  • A 1.7 percent annual wage increase on top of the best compensation package in the industry
  • Increased contribution of 9.2 percent to the Unite Here benefit plans
  • Employer paid health care for employees and their families

Centerplate this week filed a lawsuit against Local 2 Unite Here for attempting to illegally mandate the signing of a “successor addendum” that would bind any future concessionaire at AT&T Park to the same terms Local 2 negotiates with Centerplate. This action is illegal under the federal labor laws, Centerplate officials said.

The lawsuit says Local 2 President Michael Casey seeks to end Centerplate’s relationship with nonprofit organizations, forcing out such groups as St. Teresa Music and Arts, Leukemia Lymphoma Society, Athletes Committed to Academics, Berkeley Youth Alternatives, the United States Navy, and other nonprofits, from working at the stadium to raise money for their charitable works.

“Local 2’s President scoffed at the value of the (nonprofit) program, stating that the U.S. Navy did not need to work a stand at the ballpark to pay for prosthetic limbs for wounded Veterans,” the lawsuit states. “Casey also quipped about the Marines, “‘Why don’t you have them man a boat and they can sell hot dogs on the water,’” according the Centerplate lawsuit against Local 2.

The nonprofits make hundreds of thousands of dollars a year through partnering with Centerplate at baseball games by staffing concession stands and earning commissions based upon sales for their charitable work. Local 2 is now demanding Centerplate pay a penalty of $200 for each volunteer used for charitable work, which would eliminate Centerplate’s ability to partner with nonprofits.

“Local 2 has overstepped the bounds of the law and of humanity,” said spokesman Singer. This past week, Local 2 union leaders walked out on contract negotiations with Centerplate and a Federal Mediator, refusing to accept or to even make an economic counter proposal and thereby denying, for the time being, Centerplate’s employees at AT&T Park the economic benefits that would flow from a new contract.

Centerplate, which manages concessions at 300 ballparks and arenas, said its current contract as well as its new offer keeps AT&T Park employees the highest paid in the concession business.

Local 2 Unite Here publically acknowledged that Centerplate’s employees are already the highest paid workers in the concession industry. In a YouTube video posted on May 12, the union spokesperson is quoted saying, “so what if they’re (the employees) the best paid…that doesn’t mean anything.”

Centerplate said it wanted to make clear that this strike is a dispute between Local 2 Unite Here and Centerplate and not the San Francisco Giants.

Continue Reading

PG&E: San Bruno Mayor Says “We Won’t Let Pacific Gas & Electric Off the Hook” for San Bruno Explosion and Fire, Deaths and Destruction

San Bruno–Mayor Jim Ruane reacted strongly this evening to a PG&E filing with the California Public Utilities Commission, in which the utility company rejected the a call for major fines and penalties for its explosion and fire of Sept. 9, 2010, in San Bruno that killed eight, harmed dozens of residents and destroyed a community neighborhood.  This is the official statement issued by the City of San Bruno:

“The City of San Bruno finds the PG&E filing with the California Public Utility Commission today deeply disappointing and of great concern.  PG&E continues to downplay its systematic failures and its personal and corporate responsibility for the Sept. 9, 2010 San Bruno explosion and fire.

“Eight people died in our community, scores more were injured and a giant hole was created by PG&E in the heart of our community.  Yet, as we near the third anniversary of this great tragedy, PG&E continues to fail to acknowledge its responsibly for this catastrophe.  The explosion and fire would have never occurred if the company hadn’t diverted monies meant for pipeline safety and had performed safety work that was legally, scientifically, contractually and morally required of them by the California Public Utility Commission, which also bears responsibility for this tragedy for its failure to regulate the utility company.

“We have only made a quick review of the voluminous PG&E filing today and expect to make further comments and filings of our own as part of the penalty phase by the CPUC against PG&E.  We will not let PG&E off the hook for the damage they have done to our community, to their reputation and the deep concern they have created throughout California about pipeline safety,” said Mayor Jim Ruane, City of San Bruno.

Continue Reading

Local 2 UNITE HERE Union Leader Mike Casey Denigrates Navy, Marines, Disabled Veterans: Sued by Centerplate For Violation of Federal Labor Law, Attempt to Eliminate Nonprofits In San Francisco AT&T Park Labor Dispute

 Local 2 UNITE HERE President Mike Casey: No Need for Military Veterans to Have Prosthetic Limbs

San Francisco– Centerplate, the concessionaire at AT&T Park today filed a dynamic lawsuit against Local 2 Unite Here union for violations of national labor laws and for attempting to block charity groups and nonprofits from raising money at the ballpark.

Centerplate said Local 2 is attempting to illegally force the San Francisco Giants into signing a “successor addendum” that would bind the baseball team, and any future concessionaire at AT&T Park, to the same terms Local 2 negotiates with Centerplate. This action is illegal under the federal labor laws, Centerplate officials said.

Normally, the legal charges as Centerplate made today are filed with the National Labor Relations Board, but Centerplate said immediate action is necessary by the legal system to protect the Giants, Centerplate and nonprofits from Local 2’s illegal activities, which could harm all the parties. The lawsuit was filed in U.S. District Court in San Francisco and seeks damages and declaratory relief.

Furthermore, the lawsuit says Local 2 President Michael Casey seeks to end Centerplate’s relationship with nonprofit organizations, forcing out such groups as St. Teresa Music and Arts, Leukemia Lymphoma Society, Athletes Committed to Academics, Berkeley Youth Alternatives, the United States Navy, and others nonprofits, from working at the stadium to raise money for their charitable works.

“Local 2’s President scoffed at the value of the (nonprofit) program at one point stating that the U.S. Navy did not need to work a stand at the ballpark to pay for prosthetic limbs for wounded Veterans,” the lawsuit states. “Casey also quipped about the Marines, “Why don’t you have them man a boat and they can sell hot dogs on the water,” according the lawsuit against Local 2.

The nonprofits make hundreds of thousands of dollars a year through partnering with Centerplate at Giants games by staffing concession stands and earning commissions based upon sales for their charitable work. Local 2 is now demanding Centerplate pay a penalty of $200 for each volunteer used for charitable work, which would eliminate Centerplate’s ability to partner with nonprofits.

“Local 2 has overstepped the bounds of the law and of humanity,” said a spokesman for Centerplate.  “They are illegally attempting to force the Giants into a labor dispute between Centerplate and the union and wrongly trying to harm the many nonprofits that rely upon income from their charitable work at AT&T Park. We are going to fight to win this battle for Centerplate, our employees, our customers and the charitable causes which we support.”

This past week, Local 2 union leaders walked out on contract negotiations with Centerplate and a Federal Mediator, refusing to accept or to even make an economic counter proposal and thereby denying, for the time being, Centerplate’s employees at AT&T Park the economic benefits that would flow from a new contract.

Local 2 Unite Here publically acknowledged that Centerplate’s employees are already the highest paid workers in the concession industry. In a YouTube video posted on May 12, the union spokesperson is quoted saying “so what if they’re (the employees) the best paid…that doesn’t mean anything.”

As a seasonal, part-time labor force, Centerplate’s employees currently earn the highest wages in the nation, making an average of approximately $15 to $20 per hour. These part time employees also receive some of the best benefits, with fully paid healthcare individually and for their families. To ensure seamless exceptional service for fans, Centerplate has made an offer than includes:

  • A 4.5 percent ratification bonus for those who worked more than 40 games in 2012
  • A 1.7 percent annual wage increase on top of the best compensation package in the industry
  • Increased contribution of 9.2 percent to the Unite Here benefit plans
  • Employer paid health care for employees and their families

Since early this year, Centerplate has been in negotiations over a new contract. The previous one expired in 2010 but was continued from year to year when Unite Here failed to request new negotiations. Even after it sought to make changes to the existing agreement, Local 2 dragged its feet and delayed negotiations for months. Throughout this time, Centerplate has been encouraging Local 2 to move quickly to find a solution.

“Nothing is more important to Centerplate than our employee partners and the customer service experience we provide guests. Local 2’s threats are an attack against our guests and the community groups we partner with at AT&T Park. It is time for Local 2 to come back to the table and focus on a realistic agreement,” spokesman Sam Singer said.

Centerplate said in the unfortunate event of a strike by Local 2 that “protecting the guest experience at AT&T Park is paramount and it will not be disrupted as the company has contingency plans in place in the event of a labor action.”

Continue Reading

San Francisco Giants AT&T Ballpark Union Local 2 Refuses to Negotiate, Walks Out on Centerplate, Federal Mediator

Unite Here Local 2 union leaders have walked out on contract negotiations, refusing to accept or to even make an economic counter proposal and thereby denying, for the time being, Centerplate’s employees at AT&T Park the economic benefits that would flow from a new contract.

The union unilaterally left negotiations with Centerplate and a federal mediator last Thursday, refusing to make a counter offer to Centerplate’s economic package, which improves upon the industry leading compensation already received by Centerplate’s employees.

Local 2 Unite Here has acknowledged AT&T Park employees are already the highest paid workers in the concession industry. In a YouTube video posted on May 12, the union spokesperson is quoted saying “so what if they’re (the employees) the best paid…that doesn’t mean anything.”

For AT&T Park’s seasonal, part-time labor force, Centerplate’s employees currently earn the highest wages in the nation, making an average of approximately $15 to $20 per hour. These part time employees also receive some of the best benefits, with fully paid healthcare individually and for their families. To ensure seamless exceptional service for fans, Centerplate has made an offer than includes:

  • A 4.5 percent ratification bonus for those who worked more than 40 games in 2012
  • A 1.7 percent annual wage increase on top of the best compensation package in the industry
  • Increased contribution of 9.2 percent to the Unite Here benefit plans
  • Employer paid health care for employees and their families

Since early this year, Centerplate has been in negotiations over a new contract. The previous one expired in 2010 but was continued from year to year when Unite Here failed to request new negotiations. Even after it sought to make changes to the existing agreement, Local 2 dragged its feet and delayed negotiations for months. Throughout this time, Centerplate has been encouraging Local 2 to move quickly to find a solution.

“Nothing is more important to Centerplate than our employee partners and the customer service experience we provide guests. It is time for Local 2 to come back to the table and focus on a realistic agreement,” spokesman Sam Singer said.

Centerplate said in the unfortunate event of a strike by Local 2 that “protecting the guest experience at AT&T is paramount and it will not be disrupted as the company has contingency plans in place in the event of a labor action.”

Continue Reading

Patton Boggs Law Firm Sued by Chevron for Fraud and Deceit in Ecuador Lawsuit: Did Patton Boggs Know of ‘Ghostwriting’ of Fraudulent Ecuador Judgement?

Since late 2010, Washington, D.C. law firm Patton Boggs has been poking a sleeping tiger. It has filed three peculiar federal lawsuits — in its own name, not on behalf of any client — against Chevron, the third-largest corporation in the United States. These cases have fared poorly; two were quickly dismissed, and a federal magistrate judge recommended tossing the third in March.

 

On Friday, the tiger awoke. Chevron (CVX) sought a federal judge’s permission to bring counterclaims against the 455-lawyer firm for alleged fraud and deceit for its conduct in representing the Amazon Defense Front, which obtained a $19 billion environmental judgment against the oil giant in Lago Agrio, Ecuador, in February 2011. Chevron also seeks to charge the firm with “malicious prosecution” for having pursued its three lawsuits in bad faith. Chevron seeks to hold the law firm liable for any damages Chevron suffers from the Front’s allegedly fraud-infested litigation, plus punitive and treble damages.

 

In a statement, Patton Boggs wrote: “Chevron’s proposed complaint against Patton Boggs is perhaps the starkest example yet of how Chevron will use its limitless resources to intimidate and harass anyone that dares to help the Ecuadorian Plaintiffs in their 20-year battle for justice … Patton Boggs has acted conscientiously, ethically and in good faith at all times since becoming involved in this case in 2010, and will not be intimidated by Chevron’s scare tactics.” (See the full document here.)

 

Patton Boggs began representing the Front in February 2010. The firm is being paid on a partial contingency fee basis, under an agreement that gives it a 2.4% stake in the Ecuadorian judgment, according to earlier filings by Chevron. Thus, the law firm theoretically stands to make about $450 million if the Ecuadorian judgment can ever be collected. (Chevron has virtually no assets in Ecuador.)

 

Patton Boggs’s team working on the Lago Agrio case has been led by James Tyrrell, Jr., a regional managing partner of the firm’s New York and New Jersey offices and a member of its executive committee.

 

At the time Patton Boggs got involved in the matter, Chevron’s lawyers had just begun filing a series of U.S. court proceedings, known as Section 1782 actions, to attempt to expose fraud, fabrication of evidence, and other chicanery that Chevron claims the Front engaged in to obtain the Ecuadorian judgment. Patton Boggs’s task was, among other things, to assist the Front in resisting Chevron’s efforts to unearth such evidence.

 

Notwithstanding the Front’s and Patton Boggs’s efforts, Chevron eventually did obtain much of the evidence it sought, and in February 2011 it filed a civil Racketeer Influenced and Corrupt Organizations Act (RICO) case in Manhattan against the Front’s leaders, including its top U.S. lawyer and strategist, Steve Donziger. Last July, in a ruling on a partial summary judgment motion in that case, U.S. District Judge Lewis Kaplan found that the March 2011 Ecuadorian judgment was, in fact, “unquestionably … tainted” by fraud. More recently, in a discovery order in March 2013, he also found that there was “probable cause” to believe that Front representatives “bribed the Ecuadorian judge to obtain the result they wanted and, as part of the deal, wrote the judgment to which the judge put his name.”

 

(The Front has repeatedly and unsuccessfully sought to remove Judge Kaplan from the case, accusing him of bias in strident and borderline contemptuous terms.)

 

One of the reasons Judge Kaplan found it likely that the Ecuadorian judgment was ghostwritten by the Front’s lawyers is that it incorporates large passages that appear to have been lifted verbatim from internal Front legal memoranda that were never introduced into the Ecuadorian court record. In the proposed complaint, Chevron alleges that at least one of the lifted passages incorporates Patton Boggs’s own work product.

 

Thus, it alleges, “Patton Boggs either knew in advance of the ghostwriting of the judgment against Chevron or must have become quickly aware of it once Chevron began to make the evidence known, and yet Patton Boggs continued to further the fraudulent scheme … Despite the uncontradicted evidence to the contrary, Patton Boggs has falsely asserted in the U.S. that this judgment is legitimate and not the product of a corrupt process in which Patton Boggs and/or its co-counsel colluded with the Ecuadorian court or court experts.”

 

Another focus of Chevron’s proposed complaint is Patton Boggs’s alleged role in “direct[ing] the creation of a declaration” signed by Front lawyer Pablo Fajardo that was filed in a Section 1782 action in Denver federal court in May 2010.

 

In his March 2013 ruling, Judge Kaplan called the Fajardo declaration “a seriously misleading account of what had happened” and, again, found “probable cause” to believe that “at least some” of the Front’s representatives “had committed mail and/or wire fraud and obstructed justice … by formulating and filing” it. The Front later filed the Fajardo declaration in at least eight other U.S. courts around the nation, including Kaplan’s.

 

Also in dispute is a strategy Patton Boggs allegedly “orchestrated” of hastily seeking testimony from seven newly hired experts — known internally at Patton Boggs as the “cleansing” experts — and introducing their written testimony into the Ecuadorian court record in late 2010 in an effort to give the Ecuadorian court something to base its opinion upon other than a court-appointed expert’s report that Chevron alleges (and appears to have proven) was secretly ghostwritten by the plaintiffs lawyers.

 

Chevron alleges that the cleansing experts in fact simply relied on the fraud-tainted report and that Patton Boggs’s lawyers tried to conceal that fact.

 

Chevron also takes issue with Patton Boggs’s continuing attempts to enforce the Ecuadorian judgment in foreign courts, including, so far, those of Canada, Argentina, and Brazil, “despite overwhelming and un-rebutted evidence that the Ecuadorian judgment itself, and the [court-appointed expert's report] upon which it is based, were fraudulently ghostwritten by the LAPs’ own team.”

 

Finally, Chevron faults Patton Boggs for having helped the Front secure funding for its allegedly fraud-tainted litigation by allegedly misleading the investment fund Burford Capital, which specializes in litigation finance. Burford has since renounced its interest in the case and has accused both the Front’s leaders and Patton Boggs’s Tyrrell of having made false representations to lure it into the case. (Patton Boggs has responded in the past that it is “fully confident that it has acted appropriately and ethically.”)

 

Chevron’s proposed complaint is based on documents already in its possession that relate to Patton Boggs’s role in the case, but it is already in the process of trying to obtain many more documents from the firm. In March Judge Kaplan ordered Patton Boggs to begin turning over millions of pages of files in the case, finding that any attorney-client privilege was pierced by the so-called crime-fraud exception. He wrote: “PB participated heavily in certain critical activities that make it likely that it is an important and, in many respects, unique source of evidence of the alleged fraud that is available nowhere else and that at least some of the materials in its possession or control were in furtherance of crimes or frauds regardless of whether PB was aware of them.”

 

Chevron’s new proposed claims against Patton Boggs are not being leveled in the RICO case itself, which is scheduled to go to trial in October, but rather as a counterclaim in a case Patton Boggs itself brought against Chevron in Newark last year, which was transferred to Manhattan earlier this year.

 

That case is the third of Patton Boggs’s suits against Chevron, which are the subject of Chevron’s “malicious prosecution” allegation against the firm. The string of Patton Boggs suits began in November 2010, when it sued Chevron seeking a preemptive declaration that Patton Boggs had no conflict of interest in representing the Front — though Chevron had not moved to disqualify it. (The potential conflict related to Patton Boggs’s July 2010 acquisition of the Breaux Lott Leadership Group, a lobbying firm that Chevron says was representing it with respect to its Ecuador litigation between 2008 and 2010.)

 

Patton Boggs later added Chevron’s main outside counsel, Gibson Dunn & Crutcher, as a defendant, and also accused Chevron of “tortious interference with contract” for having allegedly interfered with the Front’s ability to find financing with which to pay Patton Boggs. U.S. District Judge Henry Kennedy, Jr., dismissed this and a second, nearly identical Patton Boggs suit against Chevron in April, July, and August of 2011, and an appeals court unanimously affirmed both dismissals in June 2012.

 

By then, Patton Boggs had filed the third suit against Chevron in Newark. This one had to do with a $21.8 million appeal bond that Judge Kaplan had required Chevron to post when, in March 2011, he granted a preliminary injunction barring the Front from trying to enforce the Ecuadorian judgment outside Ecuador. After the injunction was vacated by an appeals court in January 2012, Chevron asked Judge Kaplan to release the bond — i.e., give Chevron back the money it had posted.

 

Patton Boggs opposed Chevron’s motion, but instead of simply doing so in a motion before Judge Kaplan on the Front’s behalf, it filed an entirely new lawsuit in Newark on Patton Boggs’s own behalf. Later Patton Boggs added a “malicious prosecution” claim against Chevron for its having identified Patton Boggs as a “co-conspirator” (though not a defendant) in its RICO suit. In December 2012, Newark federal judge Esther Salas transferred the case to Judge Kaplan in Manhattan, criticizing Patton Boggs’s “jurisdictional maneuvering.” (Judge Kaplan released the bond in April 2012, and Patton Boggs has appealed that order.)

 

In March 2013, Magistrate Judge James C. Francis IV in Manhattan recommended dismissal of Patton Boggs’s third suit, and Patton Boggs has appealed to Judge Kaplan. Chevron’s new claims against Patton Boggs for fraud and deceit, filed today, come as counterclaims in that case.

 

It seems likely that Patton Boggs was already losing money from its representation of the Front — that was an underlying premise for all three of its lawsuits against Chevron — and the counterclaim against it by Chevron cannot help its situation. Patton Boggs did not respond to a request for comment on whether the Front was in arrears on payments owed to it.

 

Last week another of the Front’s U.S. law firms, Houston’s, Smyser Veselka & Kaplan, asked to withdraw from the RICO case, saying it was owed almost $1.8 million in fees. At the same time, Donziger’s law firm in that case, Keker & Van Nest — which the Front had also been paying, under the terms of its retainer agreement with Donziger — also asked to withdraw, saying it was owed more than $1.4 million in fees.

 

According to the Wall Street Journal, Patton Boggs laid off 65 lawyers and staff in late February, after a decline in profits. Its annual revenues were down 6.5% in 2012, the article said, while its profits fell 14%.

 

By Roger Parloff-Fortune, May 13, 2013

 

Continue Reading

CPUC President Michael Peevey Caught in The Act: He Ducks California Senate Hearing for Napa Valley Drinks with PG&E Executives

The embattled president of the California Public Utilities Commission recently ignored the call to answer tough questions by state senators in Sacramento and instead decided to attend a conference at an exclusive Napa resort and a reception at an upscale winery in St. Helena, both of which were captured on hidden camera by the NBC Bay Area Investigative Unit, headed by reporter Tony Kovaleski. See the shocking story that most likely will cost Peevey his job as head of the CPUC after Governor Jerry Brown sees this news video: http://www.nbcbayarea.com/investigations/LEGALPeeveys-Priority–205838301.html

Michael Peevey was asked to appear before the Senate Budget and Fiscal Review subcommittee on April 25 to justify keeping the job he has held for the past decade. The senate hearing was in response to growing conflict over a confidential report, uncovered by the Investigative Unit, which raises questions about the CPUC’s commitment to safety and its relationship with utility companies the agency regulates.

“The governor needs to replace the president of the Public Utilities Commission,” Sen. Jerry Hill said in an interview with NBC Bay Area last month. “The current president has been there for many years and he has had a very cozy relationship with the utilities, which this report indicates.”

Hill’s call for change at the CPUC was recently echoed by two lawmakers.

“I think the question is, who should be leading this organization so the people of California are safe,” San Jose assemblywoman Nora Campos said at a recent legislative hearing.

At that same hearing Los Altos assemblyman Richard Gordon added, “I have come to the point where we need serious change in the leadership of the PUC to bring change.”

After calling for his job two weeks ago, Hill wrote Peevey a letter formally requesting his presence at the subcommittee hearing. The letter states, “For all the shortcomings under your leadership at the CPUC over the last ten years as documented by independent reports… it’s critical that you testify…to justify your continued appointment as the president of the California Public Utilities Commission.”

Instead of addressing the conflict, Peevey kept a prior engagement at the Silverado Resort and Spa in the heart of Napa. According to the agenda, the conference was about clean energy, and Peevey was scheduled to give a short five to seven minute presentation for the non-profit organization, California Foundation for the Environment and the Economy (CFEE).

Before the conference started, at around 11 a.m.—the same time he was expected in Sacramento—NBC Bay Area’s hidden cameras spotted Peevey mingling with guests in the resort conference center.  The day officially started at noon, with a catered lunch after invited guests such as a representative from Pacific Gas & Electric and, somewhat ironically, more than two dozen Sacramento lawmakers, checked in at the event. Peevey gave his presentation at 1:30 p.m.—two and a half hours after he was scheduled to speak in Sacramento.

After four hours of conference sessions Peevey boarded a luxury bus and drove through the Napa Valley to the next event on the agenda—a reception and dinner at St. Helena’s exclusive Merryvalewinery. For more than three hours, Peevey ended his day inside the facility along with more than 100 guests.

Following the reception, NBC Bay Area’s Chief Investigative Reporter Tony Kovaleski met Peevey outside the winery to ask questions about his priorities, and the confidential report. Below is a transcript of a part of the conversation:

Tony Kovaleski: You were asked to speak to senators today about the safety of your PUC. Instead you spent your day here in Napa.

Michael Peevey: No, that’s not true.

Kovaleski: What is the message you sent by coming here to Napa instead of going to speak to the senate?

Peevey: You are very antagonistic you know. You are reading a script.

Kovaleski: Sir, I am not reading a script. I want to give you an opportunity to respond.

Peevey: But your questions are the wrong questions.

Kovaleski: You spent time here with the utilities you are paid to regulate.

Peevey: There’s no utilities here that I know of.

Kovaleski: PG&E was here. We saw them on the list.

Peevey: Oh, there may have been one person, I don’t know.

Kovaleski: That report said your agency is too cozy with utilities. Is that true?

Peevey: No. Stop. That’s one person who said that. That’s not what the report said. There was no conclusion in the report. It was an interview with various individual employees of the Public Utilities Commission.

Kovaleski: Sir, you have been asked by lawmakers to step down. Lawmakers have said you should be fired. Should you be fired, sir?

Man with Peevey: No, he shouldn’t be fired. They don’t have the authority.

(Peevey starts to walk away).

Peevey: You poor son of a b****. You have a job to do. It’s pathetic what you are doing. It’s pathetic.

(Peevey gets into a car).

Kovaleski: Sir, should you answer to lawmakers when they ask to speak with you? What’s the message you sent tonight by coming here?

(Car drives away).

NBC Bay Area asked to speak with Peevey about the confidential report prior to the conference in Napa, but did not receive a response to that request from the CPUC. The CPUC did provide a written statement about the report:

The CPUC has made safety an underlying principle in all its actions. As we work to instill a corporate culture in our regulated utilities that embraces safety as a tool and an enhancement to their mission, we must ensure we do the same at the CPUC. We have hired consultants to help us in our process of culture change across all the industries we regulate. As part of these efforts, our consultants conducted an informal survey of internal employees to see what they think safety means, how they see their role in safety, and how they think we can do better as an agency. The report is the result of the informal survey; it is not an analysis of our safety culture or conclusions by our consultants, but a reporting-back of what some employees said in informal focus groups. As the report says, “This report is not an evaluation of the objective truth of those views and perceptions.”  We will use the results of the report to help us define what we need to change, develop strategies and actions to implement the changes, and ensure accountability as the process continues.

This is not the first time Peevey has snubbed lawmakers for an all-expense paid event. He was asked to speak at an assembly committee meeting in 2011, but reports indicate he accepted a free trip to Sweden that was funded by the Swedish government and the California nonprofit, The Energy Coalition.

When asked by reporters in April about his confidence in the leadership of the CPUC, Gov. Jerry Brown said Peevey is “well-experienced.”

“He’s flawed like everyone else in this building,” Brown said, “but he has a lot of knowledge and he has great commitment.”

Continue Reading

Chevron Wins Another Round in Ecuador Fraud Case: Case Against Oil Company in $19B Pollution Case Collapsing

Chevron continues to battle charges against the oil company in Ecuador and win victory after courtroom victory against Steven Donziger and the plaintiffs in the fraudulent case of pollution in the Amazon region of Ecuador.

Just yesterday, the Ontario Superior Court of Justice stayed an action initiated by the Ecuadorian plaintiffs seeking to have a judgment of an Ecuadorian court against Chevron Corp. [NYSE: CVX] recognized and enforced in Ontario.

This latest success for Chevron comes right after a series of blockbuster announcements by former members of Donziger’s plaintiffs’ team who have now switched sides and joined Chevron, announcing the work they did for Donziger and the Ecuadorian was fabricated or faulty because they, too, were misled by Donziger.

Add to these recent announcements that a former Ecuadorian judge revealed that he accepted bribes from the plaintiffs’ team along with another Ecuadorian judge to draft rulings in favor of the plaintiffs and you have a lawsuit that is a better read than anything John Grisham has ever written.

The Canadian court ruled yesterday in the case and wrote:

“The plaintiffs (Steven Donziger, Ecuadorians) have no hope of success in their assertion that the corporate veil of Chevron Canada should be pierced and ignored so that its assets become exigible to satisfy a judgment against its ultimate parent.  There is no basis in law or fact for such a claim.… Ontario courts should be reluctant to dedicate their resources to disputes where, in dollar and cents terms, there is nothing to fight over.  In my view, the parties should take their fight elsewhere to some jurisdiction where any ultimate recognition of the Ecuadorean judgment will have a practical effect.”

In response, Chevron Corporation issued the following statement:

“We are pleased with today’s decision from Justice Brown. The Ontario Superior Court ruled that it ought not to entertain the plaintiffs’ claims on the evidence before the court. This is a significant setback to the Ecuadorian plaintiffs’ worldwide enforcement strategy given that it is premised on seeking to enforce the judgment against assets of Chevron Corporation subsidiaries that were not even parties to the Ecuadorian litigation.”

“The plaintiffs should be seeking enforcement in the United States – where Chevron Corporation resides.  In the U.S., however, they would be confronted by the fact that eight federal courts have already found the Ecuador trial tainted by fraud.”

Meanwhile, Chevron Corp. has made additional notable progress in the legal proceedings in the United States exposing the fraudulent nature of the plaintiffs’ judgment.  This evidence further demonstrates that the judgment is illegitimate and should be unenforceable in any court that respects the rule of law.  Evidence of the plaintiffs’ fraud includes:

  • A former Ecuadorian judge has admitted his role in orchestrating the fraudulent judgment against Chevron and a half-million-dollar bribery scheme.
  • Stratus Consulting, the lead environmental consultants to the Ecuadorian plaintiffs’ lawyers, provided sworn declarations (here and here), highlighting the lack of scientific merit to the plaintiffs’ damage claims.
  • Another of the plaintiffs’ lawyers’ environmental consultants, Dr. Charles Calmbacher, has testified that plaintiffs’ evidence was being falsified from the very outset of the trial.
  • Litigation hedge fund Burford Capital has provided a sworn declaration outlining the firm’s knowledge of the plaintiffs’ lawyers’ misconduct, testifying that the proceeding is irredeemably tainted by fraud.

Chevron Corp. remains committed to holding the plaintiffs’ lawyers accountable for their misconduct and demonstrating the judgment is the product of a corrupted judiciary.

Chevron Corp. is defending itself against false allegations that it is responsible for alleged environmental and social harms in the Oriente region of Ecuador.  Chevron never conducted oil production operations in Ecuador, and its subsidiary Texaco Petroleum Co. (“TexPet”) fully remediated its share of environmental impacts arising from oil production operations, before leaving Ecuador in 1992.  After the remediation was certified by all agencies of the Ecuadorian government responsible for oversight, TexPet received a complete release from Ecuador’s national, provincial, and municipal governments that extinguished all claims before Chevron acquired TexPet in 2001.  All legitimate scientific evidence exonerates Chevron and proves that the remediated sites pose no significant risks to human health or the environment.

More information on the plaintiffs’ lawyers’ fraud can be found here.  Additional background on the Ecuador litigation can be accessed here and here.

 

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company is involved in virtually every facet of the energy industry.  Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and lubricants; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels.  Chevron is based in San Ramon, Calif.  More information about Chevron is available at www.chevron.com.

 

Continue Reading

Energy Upgrade California Gives Energy Efficiency Tips to Save Energy, Money, Environment

The average California home loses 30 percent of its energy each day and in the fast approaching summer months that number can spike due to hot outdoor temperatures and the increased usage of cooling systems in homes.

From simple tasks such as installing a programmable thermostat or closing curtains on hot summer days, to leveraging local and statewide rebates—up to $4,500—on home improvements, homeowners can take control of how their home  uses energy, save money on their utility bills and be more eco-friendly in the long term.

Energy Upgrade California recommends homeowners follow these 10 Quick and Easy No-Cost Energy Saving Tips to help save money on utility bills and make their homes more comfortable in the warm summer months:

  1. Take control of your thermostat. Set your thermostat to 78ºF or higher when you’re at home, and 85ºF when you’re gone. Keep inside air vents clear from furniture and other objects. Turning up your thermostat by just two degrees and use your ceiling fan instead can lower air conditioning costs by up to 14%.
  2. Turn your water heater down. Many homes’ hot-water heaters are set way above the recommended 120-degree temperature. Unfortunately, every 2.5 degrees above the mark unnecessarily boosts your hot water bill by about 1%.
  3. Cook with small appliances. Cook with your toaster oven, electric skillet and slow cooker for specialized jobs, rather than the range. Small appliances use less energy.
  4. Avoid using heat-producing appliances. If you’re home during the day, try to reduce the use of the oven, range, dishwasher, clothes washer and dryer.
  5. Turn off the faucet. Many of us tend to leave the faucet running while we wash dishes, brush our teeth or shave. Turning on the faucet only when necessary can save thousands of gallons of water a year, not to mention the energy needed to heat it.
  6. Keep the blinds and windows closed during the day and open at night. This is a no-cost way to keep your home a little cooler.
  7. Keep lights off in unoccupied rooms. Get in the habit of turning off the light every time you leave a room for more than a few minutes.
  8. Turn off power adapters when not in use. Plug home electronics, such as TVs and DVD players, into power strips; turn the power strips off when the equipment is not in use—TVs and DVDs in standby mode still use several watts of power.
  9. Check the thermostat on your refrigerator or freezer. Use the energy efficient settings. 35 degrees Fahrenheit for your fridge and 0 degrees Fahrenheit for your freezer.
  10. Air-dry your dishes and clothing. Air-dry dishes instead of using your dishwasher’s drying cycle and hang your clothes out to dry instead of putting them in the dryer.

If you are looking for even more ways to save and are ready to take additional steps towards energy efficiency, you can follow these Low-Cost Energy Saving Tips:

  1. Replace old appliances. One of the first culprits of energy loss is inefficient and outdated appliances. By replacing energy-wasting appliances you are able to get that much more output with far less energy.
  2. Replace filters often. Keep air conditioner filters clean. They should be cleaned or replaced once a month during the season. If you can do so safely, clean the exposed grill and spines of the outside unit.
  3. Use Energy Star compact fluorescent light bulbs. Energy Star compact fluorescent light bulbs last longer and use up to 75 percent less energy than standard light bulbs. You can cut your electric bill by $60 per year if you replace the standard bulbs in your five most frequently used light fixtures.
  4. Install energy-efficient showerheads. Use efficient showerheads and faucet aerators. They reduce the amount of water released by up to 50 percent, with almost no noticeable difference in pressure.
  5. Put up white shades for your windows and install light-colored awnings. White shades will reflect the heat in the summer. Some studies report that an awning can reduce heat gain in your home by up to 77%.

If California homeowners would like to take additional steps towards creating a completely energy efficient and environmentally friendly home they can learn more about home energy assessments and home upgrades at EnergyUpgradeCa.org.  Energy Upgrade California offers the Basic and Advanced energy efficiency upgrade packages tailored to each homeowner’s specific needs. You choose the one that works best for your goals and budget. Here are some of the upgrades Energy Upgrade California may suggest:

  1. Repair cooling and heating ducts. Repair old ducts by patching them up to adequately heat and cool your home. By allowing the loss of your hot air through the ducts you must overcompensate with your heater usage to reach the same temperature.
  2. Thermostatic shower control. A thermostatic control valve shuts off the shower once the water turns warm, in order to save hot water until you are ready to enter the shower.
  3. Fix home air leaks. Closing off the air leaks in your home around doors, windows, attics, vents, and elsewhere in between reduces drafts and keeps warm air from coming in during summer months. Sealing air infiltration may decrease your energy consumption by up to 10%.
  4. Install energy-efficient windows. Installing energy-efficient windows can save as much as 24% off your air conditioning bills. Energy efficient windows will prevent outside air from entering your home and keep your inside at a constant temperature. If you live in an older home, consider replacing your inefficient aluminum, wood, or metal windows with newer ones, as these types of windows tend to transfer hot and cold air into your home.
  5. Insulate, Insulate, Insulate. Increase the insulation levels in your house, from your attic, walls or doors.

About two-thirds of the single-family homes in the Bay Area could benefit from these kinds of improvements.  Recent studies have found that eco-friendly and energy efficient homes sold for as much as 8.5% more than other homes. In addition, homes receiving official environmental certification by a third party group such as the U.S. Green Building Council sold for as much as 25% more than regular homes.

About Energy Upgrade CA

Energy Upgrade California is a program of the California Public Utilities Commission in collaboration with the California Energy Commission, California counties, cities, nonprofit organizations, and the state’s investor-owned utilities. It is your one-stop-shop for home improvement projects that lower your energy use, conserve water and natural resources, and make your home healthier and more comfortable. For more information, visit www.energyupgradeca.org.

 

Continue Reading

Executive Recruiter David Nosal of Nosal Partners Convicted of All Charges in FBI Investigation and Federal Grand Jury Trial

SAN FRANCISCO—David Nosal, an executive recruiter based in San Francisco, was convicted of all charges in a six-count indictment by a federal jury today, United States Attorney Melinda Haag announced. Nosal is founder and president of Nosal Partners, a member of NGS Global.

The jury found that Nosal had conspired to gain unauthorized access to the computer system of his former employer, the executive search firm Korn/Ferry International, and to illegally obtain trade secrets belonging to Korn/Ferry. The jury also found Nosal guilty of three substantive computer intrusions in April and July 2005 and two substantives trade secret offenses that occurred in April 2005. The guilty verdict followed a two-week jury trial before U.S. District Court Judge Edward M. Chen.

Evidence at trial showed that Nosal, 55, of Danville, entered into an agreement with other Korn/Ferry employees in 2004 to take confidential and proprietary materials from Korn/Ferry’s computer system to be used in a new business that Nosal intended to establish with those individuals after he left Korn/Ferry’s employment in late 2004. The evidence showed that two of those employees downloaded large numbers of “source lists” (essentially, targeted lists of candidates developed by Korn/Ferry for the purpose of filling particular positions at particular client-companies) prior to their own departures from Korn/Ferry. Thereafter, those two employees used the Korn/Ferry login credentials of another conspirator who was still employed at Korn/Ferry to download additional source lists and other information from Korn/Ferry’s computer system in April and July 2005 for use in Nosal’s new business.

The trial in this case occurred after remand from the Ninth Circuit Court of Appeals, which had affirmed then-District Court Judge Marilyn H. Patel’s pre-trial dismissal of several computer intrusion counts.

Nosal was initially indicted by a federal grand jury on April 10, 2008. The government obtained superseding indictments on June 26, 2008 and February 28, 2013. In the most recent superseding indictment, Nosal was charged with one count of conspiracy, three counts of unauthorized access to a computer used in interstate or foreign commerce or communication, one count of unauthorized downloading and copying of trade secrets, and one count of unauthorized receipt and possession of stolen trade secrets. Nosal was found guilty on all six counts of this indictment.

The sentencing of Nosal is scheduled for September 4, 2013, before Judge Edward M. Chen in San Francisco. The maximum statutory penalty for the conspiracy charge in violation of Title 18, United States Code, Section 371 and the unauthorized access charges in violation of Title 18, United States Code, Section 1030(a)(4), is five years’ imprisonment and a fine of $250,000, plus restitution if appropriate. The maximum statutory penalty for the trade secret charges is 10 years’ imprisonment and a fine of $250,000, plus restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Assistant United States Attorneys Kyle F. Waldinger and Matthew A. Parrella and U.S. Department of Justice Trial Attorney Jenny C. Ellickson are the attorneys who are prosecuting the case with the assistance of Rayneisha Booth, Elise Etter, Beth Margen, and Hui Chen. The prosecution is the result of an investigation by the Federal Bureau of Investigation.

 

David Nosal of Nosal Partners

Continue Reading

California Public Utilities Commission President and Commissioner Must Recuse Themselves, City of San Bruno Says in Legal Filing Over CPUC Ex-Parte Discussions with PG&E

CPUC President Peevey Must Recuse Himself

San Francisco—The City of San Bruno today filed a legal motion demanding CPUC President Michael Peevey and Commissioner Michel Florio recuse themselves from an upcoming “safety” event featuring PG&E executives, noting it is illegal and unethical for the regulatory agency to participate when it will stand in judgment of the utility and fine it for the Sept. 9, 2010 explosion and fire in San Bruno that killed eight, injured 60, destroyed 38 homes and damaged scores more. The safety symposium will focus on the same subject matter that is at issue in the CPUC investigations: natural gas safety and emergency response.

 

The California Public Utilities Commission Safety Symposium featuring PG&E is scheduled for May 7-8 in San Francisco to “explore solutions to safety within California’s utility services and infrastructure sectors” and “will focus on natural gas safety issues,” according to the invitation.

 

Among the scheduled speakers and panelists are PG&E President Chris Johns, PG&E SVP of Gas Operations Nick Stavropoulos, CPUC President Michael Peevey, CPUC Commissioner Michel Florio, CPUC Executive Director Paul Clanon, and CPUC Safety Director Jack Hagan.

 

“This is like the defendant in a criminal case taking the judge to play golf together before the judge rules on his case and his penalty,” said attorney Steven Meyers of the Meyers Nave law firm, representing the City of San Bruno.

 

The legal filing cites the symposium for being an illegal ‘ex-parte’ contact between the regulator (CPUC) and defendant (PG&E) at a critical time in the CPUC hearing process in the San Bruno explosion and fire case. The filing says “the participation of the defendant and the judges… (is) a violation of the law” and calls it “unethical and inappropriate.”

 

“On its face, the PG&E-CPUC Safety Symposium appears to be a step forward in promoting natural gas safety,” San Bruno’s filing says.

 

“However, upon further scrutiny, this Safety Symposium is nothing but a forum for PG&E to put on a dog and pony show in front of two out of the five Commission decision-makers charged with determining the fines and penalties warranted by PG&E’s past misconduct, right in the middle of unprecedented and high-profile CPUC investigations into PG&E’s deficient management and operation of its natural gas system.”

 

In conclusion, the filing says “San Bruno urges the CPUC to demonstrate to the intervenors in these proceedings, the residents of San Bruno, and to the public at large that its commitment to accountability is more than mere posturing, and to do so in these cases that are gravely important to the residents of San Bruno and the ratepayers of the State of California.  San Bruno has a strong and vested interest in a CPUC process that follows the rules.   San Bruno has participated in these proceedings in good faith for over two years in reliance on the belief that a just, transparent, reasonable outcome which is in the public interest can be achieved.  San Bruno cannot achieve this outcome when the very decision-makers that are determining PG&E’s fate will be in the same room with PG&E discussing natural gas safety in a forum other than the courtroom.”

 

Continue Reading

American Group at Center of Historic Israel-Palestine Effort to Remove Landmines from Bethlehem April 24

San Francisco, Calif.—The San Francisco Bay Area should be proud that one of its own locally headquarted non-profits has assisted in helping bring together–in an historic first–both Israel and Palestine to remove landmines from a residential neighborhood in the holy city of Bethlehem this week.  And, the effort would not have been possible without the financial assistance of Napa Valley winery Spiriterra Vineyards, which founded the landmine removal effort.

Roots of Peace, which spearheaded the historic Palestine and Israel agreement to remove landmines from the City of Bethlehem, will join Israeli and Palestinian officials at a ceremony in Bethlehem to begin safely removing and detonating mines left over from a 1948 territorial dispute in one of the holiest of cities to three of the world’s major religions, Muslim, Christian and Jewish.

Heidi Kühn, founder and CEO of Roots for Peace, a landmine removal advocacy group in the San Francisco Bay Area, will participate in the at 10 a.m. April 24 explosion of the first landmine to be removed from the Husan Village in Bethlehem.

The project began when Daniel Yuval, an 11-year-old Israeli boy who lost his leg three years ago playing in the Golan Heights, appealed to Roots for Peace, an international landmine removal organization, to ensure the explosives were removed so no other child would be harmed.  Present will be a 75-year-old Palestinian shepherd who lost his arm to a landmine as a young boy in the same field.

“This is an historic occasion made possible by the cooperation from the Israeli Prime Minister Benjamin Netanyahu, President Mahmoud Abbas, Israeli Ministry of Defense, Palestinian Ministry of Defense, and the Bethlehem Governorate of the Palestinian Authority,” said Kühn.  “We are honored to have played a role in bringing these concerned and thoughtful parties together to make this neighborhood safe again for humanity.”

“The 3 acre site, located 4 miles from Nativity Manger Square where Jesus Christ was said to have been born, will be cleared of mines during a one month operation conducted jointly by Palestinian and Israeli militaries working cooperatively.  The area will be replanted with grapes as part of Roots of Peace’s Mines to Vines (Demine~Replant~Rebuild®) program.”

 

Governor of Bethlehem Mr. Abd Al Fattah Hamaye and Roots of Peace CEO Heidi Kuhn

The project cost was donated by well-known Napa Valley vintners Shirley and Paul Dean, owners of Spiriterra Vineyards, to Roots for Peace to pay the military for the mine removal.

“No child should be born anywhere in the world with the risk of losing life or limb to a landmine.  This is an important first effort in the Holy Land and we hope to clear other fields when additional funding becomes available,” Kühn said.

During the past 3 years, Kuhn has worked with both Prime Minister Benjamin Netanyahu and President Mahmoud Abbas to gain their support for her landmine initiatives.

Roots of Peace CEO Heidi Kuhn and Israel PM Netanyahu and Daniel Yuval, who lost his leg in a landmine explosion

Interfaith support for the landmine removal includes the Sheikh of Bethlehem. “We are pleased to put our hand in yours to demine The Holy Land and start from Husan Village in The Fields of Bethlehem where Jesus was born and his feet stepped once upon a time so as our children will step in the same place with peace and love,” the Sheikh said.

In a personal letter of support from Dr. Andy David, Consul General of Israel to the Pacific Northwest, he wrote of the effort: “the work of Roots of Peace is in alignment with the Hebrew phrase ‘Tikkum Olam’ which translates into ‘Repairing the World,’ humanity’s responsibility to make good amongst our nation and others, and bring justice to all mankind.”

There are an estimated 1.5 million landmines and UXO (unexploded ordinance) in The Holy Land. Following the completion of her work in Bethlehem, Kühn aims to broaden the Roots of Peace demining efforts in Qasr al Yahud, the Baptismal Site of Jesus—respected by Muslims, Christians and Jewish alike.

About Roots of Peace

Roots of Peace an international humanitarian, non-political organization works to unearth dangerous landmines in war-torn countries and empowers the local communities scarred by these inhumane weapons. For more information visit www.rootsofpeace.org

 

 

Continue Reading

Patton Boggs’ Partner James Tyrrell, Jr., Lied to Burford Capital in Chevron Ecuador Litigation

 

 

James E. Tyrrell, Jr.: Liar says Burford Investment Company

 

In the latest in a series of bombshell filings, Chevron today submitted a 26-page sworn declaration from the CEO of Burford Capital, a $300 million, publicly traded fund that in late 2010 agreed to finance Patton Boggs’s representation of the plaintiffs bringing an environmental suit against Chevron in Lago Agrio, Ecuador.

 

In it Burford CEO Christopher Bogart says his firm would never have invested in the case were it not for “false and misleading representations” made not only by Steve Donziger, the Lago Agrio team’s longtime New York lawyer, but also by Patton Boggs, a prominent Washington-based, AmLaw 100 law firm that agreed to take on the plaintiffs’ troubled environmental suit in February 2010 on a partial contingency basis. (Read the full declaration here.)

 

Burford relied on a misleading analysis of the case made by Patton Boggs partner James Tyrrell, Jr., with whom, Bogart says, Burford had a “‘special’ and multifaceted relationship” at the time. Most of the misrepresentations Bogart alleges concern the extent to which Patton Boggs already knew that a crucial damages assessment drafted by a purportedly “neutral and independent” court-appointed expert in the case had, in reality, been secretly ghost-written by the Lago Agrio plaintiffs lawyers themselves.

 

Emails seeking comment from Tyrrell and other Patton Boggs attorneys were not immediately returned. Nor were emails to Donziger’s counsel, John Keker (who is in a court proceeding this morning).

 

Lago Agrio plaintiff team’s spokesperson, Bill Hamilton of Fenton Communications said that “in the final analysis, this … is just more of Chevron’s non-stop Big Money attempt to intimidate and malign the Lago Agrio plaintiffs and their lawyers and supporters. It has no bearing on what happened in Ecuador, does nothing to remediate the harm that even Chevron has admitted took place in the Amazon and constitutes a side show that will not stop efforts to attach Chevron properties in Argentina, Canada, Brazil, and around the world.” He asserted that Burford’s allegation of misconduct by the plaintiffs is “at its core, just a dispute about money.”)

 

Because an Ecuadorian provincial court issued an $18.2 billion judgment against Chevron in February 2011 — later bumped up to $19 billion—Patton Boggs theoretically stands to collect hundreds of millions of dollars if the judgment can ever be enforced. The plaintiffs’ team is currently attempting to enforce it foreign courts, including those of Canada and Argentina.

 

Chevron is currently considering whether to bring fraud charges against Patton Boggs, the company stated in a Manhattan federal court filing Friday, and will make up its mind by May 10.

On October 31, 2010, Burford gave the plaintiffs $4 million in financing as the first tranche in what was planned to become a $15 million investment in the case. In exchange it received a 1.5% stake of any recovery, which was to rise to a 5.5% stake upon full funding.

But on February 1, 2011, Chevron (CVX) filed a civil RICO (Racketeer Influenced and Corrupt Organizations Act) suit in Manhattan federal court against Donziger, the Amazon Defense Fund, and others key figures involved in the Lago Agrio case, alleging wire fraud, extortion, money laundering, and obstruction of justice. U.S. District Judge Lewis Kaplan issued a preliminary injunction in March in a 131-page, 434-footnote ruling that detailed the disturbing state of the evidence against Donziger and his Ecuadorian collegues on the case at the time. (The injunction was later vacated on appeal jurisdictional grounds unrelated to Kaplan’s factual findings.) Burford never made any follow-up investments.

 

Although Burford quickly resold most of its stake in the case in December 2010, it retained until today an upside interest in the outcome of the lawsuit. With today’s settlement, however, Burford turns that remaining stake over to Chevron. In this morning’s joint press release, Bogart says, “Burford stands by its clients in the face of aggressive litigation tactics by their opponents, but Burford does not sit still for being deceived or defrauded and has no interest in profiting from such conduct.”

 

In Bogart’s affidavit he argues that Burford was especially inclined to credit Tyrrell’s assessments of the case because of Tyrrell’s “special relationship” with the firm. To begin with, he writes, Tyrrell was, as a former partner at Latham & Watkins, close friends of four former Latham partners who then occupied senior positions at Burford.

 

“Tyrrell was also an advocate and enthusiast of litigation funding,” Bogart continues, extending “support to start-up funders.” For instance, Patton Boggs was providing Burford with rent-free office space at its New York office, which Tyrrell heads, at the time the Lago Agrio investment was negotiated, Bogart writes.

 

Last month Judge Kaplan ordered Patton Boggs to make voluminous productions of documents, finding that any attorney client privilege that might apply would be pierced due to the “crime fraud exception,” which applies when there is evidence that documents were made in furtherance of a crime or fraud. Though Judge Kaplan made no finding as to whether Patton Boggs itself had any actual knowledge of any crime or fraud, his 73-page ruling was tart in its rejection of the firm’s portrayal of itself as an unrelated outsider who, if it complied with the subpoena, would be forced to incur excessive and burdensome costs.

 

He wrote: “Here, [Patton Boggs] was well aware of Chevron’s fraud allegations when it joined the [Lago Agrio plaintiffs] team — indeed it was brought on to combat them — and understood Chevron’s intention to fight this matter vigorously. Any failure to have anticipated that its involvement could lead to discovery obligations and expenditures on its own behalf, if there was such a failure, would have reflected an uncommon lack of foresight.”

 

Burford’s investment in the controversial case — which, like most such investments, remained secret until disclosed through ancillary U.S. litigation brought by Chevron — was the subject of a May 2011 Fortune feature story which had been highly critical of the investment firm. (See Have you got a piece of this lawsuit?)

While at least four federal court judges had already found “prima facie” evidence of fraud by the plaintiffs team at the time Burford invested, the quality and quantity of that evidence has strengthened geometrically since the filing of Chevron’s RICO case. Last July U.S. District Judge Lewis Kaplan in Manhattan ruled that “uncontradicted evidence” showed that the case had been “unquestionably … tainted” by this fraud. (See Chevron claims Patton Boggs tried to cover up a fraud)

 

In addition, Chevron has now also presented in its RICO case substantial evidence indicating that the entire 188-page, $18.2 billion judgment ruling was ghostwritten by the Ecuadorian plaintiffs lawyers themselves — an opportunity that was allegedly accorded to them after they agreed to pay two Ecuadorian judges $500,000 from the anticipated recovery. Chevron has shown, for instance, that at least one third of the judgment contains material that was lifted from internal plaintiffs memoranda that were never made part of the record in the case, and it has submitted an extensively corroborated affidavit from one of the two Ecuadorian judges in question.

 

(In reply, the Lago Agrio plaintiffs team submitted an unnotarized declaration from the other former judge, the titular author of the ruling, Nicolas Zambrano. In it Zambrano says he wrote the ruling himself and denies having accepted any bribe offer. But the Lago Agrio plaintiffs team has also indicated that Zambrano will probably refuse to submit to a deposition backing up his claim, rendering his declaration’s legal value dubious. Further, in his declaration Zambrano makes no attempt to explain away the voluminous corroborating evidence of ghostwriting that Chevron has submitted.

 

Similarly, in a terse, carefully worded affidavit the Lago Agrio plaintiffs’ chief U.S. lawyer Donziger has denied personal involvement in or knowledge of bribery or ghostwriting of the judgment, but has not denied that bribery and ghostwriting may have occurred. The other Amazon Defense Front defendants have defaulted by failing to appear in the RICO suit.)

 

Finally, just last week, the plaintiffs team’s environmental experts, Stratus Consulting of Boulder, Colo., recanted all its scientific findings and conclusions in the case in exchange for being dropped as a defendant in the RICO suit. Its officials expressed regret for having “allowed the firm to be used the way it was.” (The Lago Agrio plaintiffs say Chevron “bullied” Stratus into the recantation by threatening it with “financial extinction.”)

 

By Roger Parloff, senior editor, Fortune Magazine

 

Continue Reading

Chevron Ecuador: Ecuador Environmental Plaintiffs In Trouble as Environmental Consulting Firms Disavows Work for Steven Donziger, Luis Yanza, Pablo Fajardo


Steven Donziger, once the toast of the environmental plaintiffs’ bar, is in deep trouble.

The New York lawyer made history in February 2011 when he engineered what’s grown into a $19 billion verdict against Chevron (CVX) related to oil pollution in the rainforest of eastern Ecuador.

Chevron, which has no assets to speak of in Ecuador, vowed it would never pay a dime. The oil company has claimed that Donziger 
masterminded
 a vast fraud with the assistance of lawyers and judges in Ecuador. Chevron filed a countersuit against Donziger in federal court in New York, alleging he had fabricated evidence, threatened an Ecuadorian judge, and arranged for the ghostwriting of a supposedly independent scientific report, as well as the ultimate judgment.

Donziger, who said he represented some 30,000 indigenous rainforest villagers and farmers, has denied all of the allegations, saying that Chevron simply wanted to deflect attention from its enormous liability.

Now the San Ramon-based company has reached an important settlement with the environmental consulting firm that served as Donziger’s main source of data and analysis in the long-running Ecuador case. Stratus Consulting, based in Boulder, Colo., said in a press release today that it “was misled” by Donziger. Stratus went on to say that the plaintiffs’ legal team used its extensive research as the basis of a 4,000-page report filed with the court in Lago Agrio, Ecuador. The report was supposed to be neutral and independent, but it was not, Stratus said. The consulting firm described a court process in Ecuador that “was tainted by Donziger and the Lago Agrio plaintiffs representatives’ behind-the-scenes activities.”

Chevron had named Stratus as a co-defendant with Donziger in the New York lawsuit. In its press release, Stratus said the damages assessment to which it contributed, as well as other evidence filed in court in Ecuador by the plaintiffs, “were fatally tainted and are not reliable.” The consulting firm disavowed its work and said it would “cooperate fully” with Chevron and “provide testimony about the Ecuador litigation.” Stratus added that it “deeply regrets its involvement in the Ecuador litigation.” Separate court filings indicate that Stratus has not agreed to pay any money to settle Chevron’s claims against it.

Donziger did not immediately respond to an e-mail seeking comment.

Chevron is expected to file more specific declarations from Stratus principals in federal court in New York in coming days. Judge Lewis Kaplan, who’s presiding over Chevron’s civil racketeering suit against Donziger, has scheduled a hearing for April 16.

Donziger’s reversal of fortune over the past two years has been nothing short of breathtaking. Heralded by Amazon Watch and other environmentalists, praised in a highly regarded 2009 documentary film, and heroized by CBS’s (CBS60 Minutes, Donziger now faces the second-largest oil company in the U.S. without the scientists who once backed his pioneering case. His financing has dried up, his public-relations consultant recently left the case, and his room to maneuver appears to be diminishing quickly.

 

From Business Week. Author Paul Barrett, an assistant managing editor and senior writer at Bloomberg Businessweek, is author, most recently, of 
GLOCK: The Rise of America’s Gun
.

 

Continue Reading

America’s Cup Refuses to Pay Workers: Will This Impact Upcoming America’s Cup Finals in San Francisco This Year?

by Zennie Abraham

America’s Cup stiffs San Francisco Workers? Read on…

America’s Cup, SF. If you’re as excited about the event being here in San Francisco and the SF Bay Area as I am, then you expect the organization to get everything right, and maintain good relationships with everyone.

And if you’re as excited about the America’s Cup as I am, then you’re going to be as disappointed in America’s CUP CEO Stephen Barclay as I am after you read my blog post.

According to numerous reports and SF City Hall sources, America’s Cup CEO Stephen Barclay has not authorized the San Francisco America’s Cup organization to pay full contracted union wages to San Francisco-based businesses – in particular, Hartmann Studios.

Hartmann Studios is under contract with America’s Cup Event Authority to set up events related to and help stage the races at the center of what’s called “America’s Cup.” San Francisco ChronicleColumnists Matier and Ross reported today that the America’s Cup Event Authority owes Hartmann Studios almost half-a-million, or $400,000 in unpaid not including the $56,000 in administrative costs the City and County of San Francisco has incurred to date. That’s a total of $456,000.

Matier and Ross quote America’s CUP CEO Stephen Barclay as saying “I’m absolutely unaware of this. I’m staggered.”

Really?

Not according to an extensive email letter dated Sep 25, 2012, and titled “Budget Discussion.” The email specifically mentioned the contracted union wages, or “prevailing wages” that the America’s Cup Event Authority has to pay San Francisco organizations like Hartmann Studios.

The email was from Hartmann Studios President Mark Guelfi, and to Mirko Groeschner, the person’s who’s name is on a number of America’s Cup communications and is Marketing Director of BMW ORACLE Racing, and it was copied for Rosie Spaulding, who manages events for America’s Cup, and for Sam Hollis, America’s Cup Event Authority General Counsel (he’s their lawyer who previously worked on London’s 2012 Olympics Bid before then working for the America’s Cup).

Given that the “Budget Discussion” was with three top America’s Cup executives, and that they all report to and work with America’s CUP CEO Stephen Barclay, for Mr. Barclay to tell Matier and Ross that he’s “absolutely unaware of this” and that he’s “staggered” stretches the imagination.

Indeed, read on and you’ll see the smoking gun that points to this blogger’s assertion that Barclay did know about the prevailing wage costs and the monies owed both Hartmann Studios and The City and County of San Francisco.

Here’s the email, with the email addresses removed:

From: Mark Guelfi 
Date: Tue, Sep 25, 2012 at 6:37 AM
Subject: Re: Budget discussion
To: Mirko Groeschner
Cc: Keith Lovitt, Rosie Spaulding , Sam Hollis , *Matt Guelfi Guelfi , *Mike Guelfi Guelfi

Mirko -

Thanks for sending. I am always happy to discuss budgets and hope I was able to clear up some of your questions on our call Sunday morning. I circled back with Keith yesterday and reviewed the budget. Please see below for responses to your questions.

Shipping – These numbers come directly from our vendors to transport product to and from the venue. There is a significant amount of product ordered, which requires tractor trailer transporting. With fuel prices increasing these numbers are becoming significant costs to all of our budgets. We ask our vendors to break out their proposals by equipment, staff, labor and trucking/shipping so we can see and better analyze the detail.

Hartmann Production Staff – With regards to your call-out of Ian’s days onsite, I had the same question. Keith explained that Ian will be managing the load-out of the Yacht Club Peninsula Hospitality, which is planned to extend to October 15th. All of our pre-production time are estimates based on the scope of the project and will be billed as actuals once the project is complete although I don’t expect any surprises.

Hotel Nights/Per Diem/Travel – We normally use 100 percent local staff — both full time and those on our extended project team — however, there is nobody “left standing” in the Bay Area that is available. The city is extremely busy during the next ACWS race with Fleet Week, Blue Grass Festival, the 49ers Game, Giants Playoff Game, North Beach Festival not to mention Oracle OpenWorld. We would have had to book production staff 6 to 8 months ago in order to hire locally. Hotel costs are also significantly higher due to demand during this time period. Oracle OpenWorld alone sells out the entire city and much of the Bay Area. August costs in comparison were about half of what we are paying in October.

Parking Attendants – This was a request from Rosie via the city back in August, encouraging a “friendly face” assisting your security team in directing traffic. The request was made again for the October event.

Daily Maintenance – This was a carry over from August for litter pick-up/general cleaning for all tents on a daily basis. Rosie has since requested that this role is folded under the “greeners” that ACEA is hiring and will be removed on the budget revision.

Audio Labor – This is for the peninsula audio system, which runs the entire length of the peninsula…Nearly a mile, which requires running cable that distance. The 20k number is actually for the install, onsite crew to run the system for the entire week, and to strike the equipment post event. Labor is billed on per day basis, which is why you see a qty of 9…(1 day install, 7 day show (includes rehearsal day), 1 day strike. With the technical aspects of the requests, you have to have crew onsite managing the equipment/show.

Power – The significant portion of this cost, is again labor. Running cable, installing, onsite techs adds up quickly. Fuel is also factored in and with the economic climate this has a significant impact on costs. John Briggs with Race Management has worked directly with our technical director to ensure we are as efficient as possible when spec’ing this equipment.

As I mentioned, labor is a significant part of all event budgets, especially when there are Union Requirements and Prevailing Wage implications. Hartmann’s model is to pass along our costs directly to our clients, plus our management fee (at Oracle discount rate) and we work hard to create relationships with vendors to reduce these costs as much as possible for our clients. I agree with you. We do need to find a way to come up with a plan much further in advance so that we can minimize these costs for future events.

I will follow up, as promised, and send a separate note to you, Sam, Rosie, Keith and I will probably copy Stephen in regards to my concerns about the prevailing wage language in your contract with the City of San Francisco and the Port. The cost of labor is going to skyrocket. A laborer that we are currently paying $12 to $15 to $18 per hour is going to get paid somewhere between $50 and $85 per hour.

As you know, we are responding to the City’s Labor Standards Department’s investigation of labor rates that were paid by my company and by our subcontractors at the August race. We sent a very large stack of payroll records and copies of cancelled payroll checks to the department last week. We have since confirmed that they have received. This department has also been in touch directly with our subcontractors and they have all agreed to supply the same information. We expect the Labor Standards Department to come back to us and identify what the prevailing rate are for each discipline i.e. tenting, staging, janitorial, etc.

We will certainly have a significant amount of of back pay that we will need to send to most of the people that worked on the August project and on the upcoming October project. We are not able to pay prevailing wage at the next race since the Labor Standards Department has not yet given us the prevailing wage rates. We will provide them with our records after the race and wait for them to come back to us. This is a very time consuming process to say the least.

We will not have liability in regards to any theatrical/stagehand work since we gave all of this work to the local stagehand union, IATSE Local 16. Additionally, Hartmann Staff and any vendor staff that performed theatrical work and was not a member of the local, was paid at prevailing rates so we are covered on this front. No back pay will be required.

Please know that the final budgets that we submitted for the August events and the proposed budgets that we have prepared for the October events do not completely reflect prevailing wage. We will submit a invoice in October or November for the balance due based on the direction that we get from the City.

I hope this helps. I am available to discuss today if you have some time to discuss. I can be reached on cell.

Best Regards,
Mark Guelfi

In his response to Mark Guelfi’s email two things become obvious: first, that it becomes clear that Mirko Groeschner has issues with the union wages, and was already seeking a way to lower costs for the America’s Cup event, and second, that he was going to tell Mr. Barclay about it – he refers to him as “Stephen” – as well as Mr. Hollis, or “Sam,” the general counsel. Here’s Mirko Groeschner’s response email:

Hi Mark,

thanks for being available this morning to talk.

Looked more intensively at the budget again. Below are a few points where I would question some of the items or at least – I am not sure I understand fully the reasoning.

Perhaps we have a chance to talk towards the beginning of the week again.

Shipping: 21.400 USD. Do we need that much?
Hartmann Production Staff: as we discussed, pls have a look at the quantities again
Hotel nights, per diem and travel for crew: this is 44.000 USD, can we not have local crew that goes home each day?
Parking Attendant: Do we need that? Almost 6.500 USD
Daily Maintenance: 22.000 USD (what are these guys doing?)
Audio Labor: it says 1 day installation but still there are 20.000 USD – is that ok?
Power: when I add all costs for Labour, generators, shipping, electrician etc. I arrive at an amount of almost 100k USD….

Secondly, I will send to Stephen and Sam a note considering labour costs.

For labour in some areas it looks that we pay about 180.000 EUR. In more detail there is:

Stage Labour: 83.000 USD
Power distribution Labour: 55.100 USD
Audio Labour: 20.000 USD
Daily Maintenance: 22.000 USD

We need to find a way to plan all that a little more in advance and reduce some of these costs to make our events affordable.

Best, Mirko

So from this, it’s clear that America’s CUP CEO Stephen Barclay either wasn’t forthcoming with Matier and Ross or his deputy Mirko Groeschner withheld the information from him – neither direction is a good one, but I’m not believing that Mirko failed to tell Stephen about this issue . Again, the email exchange happened seven months ago – that’s ample time for Mr. Barclay to have known about the wage cost issue, and have done something about it.

As of this writing, it appears the something was to pay nothing to either Hartmann Productions or the City and County of San Francisco.

Stay tuned.

Originally published at: http://www.zennie62blog.com/

 

Continue Reading

Center REPertory Company finishes off its 2012/13 OFF CENTER, second stage season with the Bay Area Premier of PILGRIMS MUSA AND SHERI IN THE NEW WORLD

Anyone who has ever looked for love knows the dilemma: Do you make a safe, sensible match? Or take a risk on an exciting someone who might – just might – be the one Great Romance of your life? Musa, an Egyptian immigrant and Sheri, a very quirky Caucasian waitress must negotiate the twists and turns of not only love, but cultural expectations in this charming romantic comedy with a delightful twist.

WHERE:

The intimate Knight Stage 3 Theatre.  Lesher Center for the Arts 1601 Civic Drive in downtown Walnut Creek.

Performances begin Thursday, April 25th at 8:15PM. Press opening is Saturday, April 27th at 8:15 PM. Closes Sunday, May 12th at 2:15PM.


TICKET PRICE RANGE:  $20-$30

TICKET INFORMATION:

For more information go to CenterREP.org or call 925.943.SHOW (7469).  You can also visit the LCA Ticket Office at 1601 Civic Drive or the Ticket Office Outlets at Barnes & Noble in Walnut Creek and the Downtown Walnut Creek Library.

PERFORMANCE SCHEDULE: (Knight Stage 3 Theatre)

THURSDAY – April 25, 8:15PM

FRIDAY – April 26, 8:15PM

SATURDAY – OPENING April 27, 8:15PM

SUNDAY – April 28, 2:15PM

 

THURSDAY – May 2, 8:15PM

FRIDAY – May 3, 8:15PM

SATURDAY – May 4, 8:15PM

SUNDAY – May 5, 2:15PM

 

THURSDAY – May 9, 8:15PM

FRIDAY – May 10, 8:15PM

SATURDAY – May 11, 8:15PM

SUNDAY – May 12, 2:15PM

 

Carl Lumbly* (Tayyib) From stage to screen, Carl Lumbly is an actor respected for his steadfast talent, versatility and class. His prolific career includes over 50 credits in television, film and the theatre and extensive critical acclaim.

Lumbly portrayed CIA agent ‘Marcus Dixon,’ the gentle, mild-mannered field partner to agent ‘Sydney Bristow’ (Jennifer Garner) on ABC’s fast-paced drama series, “Alias,” for five seasons.  He most recently had a recurring role on the TNT cop drama, “Southland,” where he played an old-school, no-nonsense LAPD Captain.

For the stage, Lumbly was most recently seen with San Francisco Playhouse for the West Coast Premiere of the raucous comedy, “The Motherf**ker with the Hat,” directed by Bill English.  Carl starred as drug and parole counselor ‘Ralph D.,’ in the role Chris Rock played on Broadway in 2011. Lumbly previously starred in the San Francisco Playhouse’s production of “Jesus Hopped the ‘A’ Train,” also directed by Bill English. For his remarkable performance, he was honored with a San Francisco Bay Area Theatre Critics Circle Award for Best Performance by an Actor.  Lumbly was also featured in the 2010 San Francisco Playhouse production of Cormac McCarthy’s “Sunset Limited.” More recently, Lumbly starred in the Lorraine Hansberry Theatre’s (LHT) production of British playwright Joe Penhall’s comedy drama “Blue/Orange” in San Francisco.

Lumbly was born in Minnesota, the son of Jamaican immigrants.  His father was an avid reader, which inspired Lumbly’s early appreciation for literature.  After graduating from Macalester College with a degree in English, he landed a job writing for the Associated Press in Minneapolis.  He also supplemented his income by doing freelance writing assignments for various periodicals and magazines. While on assignment for a story on Dudley Rigg’s Brave New Workshop Comedy Theatre, Lumbly attended a public audition and was handed an audition card.  “I thought it would be a great perspective from which to write the story,” he says.  After a three-week audition process, the company offered Lumbly a coveted spot in its cast.  He stayed for two years doing improvisational comedy flavored with political satire.

Lumbly moved to San Francisco intending to continue his work as a journalist for Associated Press.  Just two days after arriving in San Francisco, he came across a newspaper ad seeking “two black actors for South African political plays.”  He went to the audition and met the other actor already cast — an unknown Danny Glover.  Lumbly landed the part and toured with Glover in productions of Athol Fugard’s “Sizwe Bansi is Dead” and “The Island.” The plays brought Lumbly to Los Angeles, where he signed with an agent, followed by a move to New York.  He landed his first significant on-screen role in a movie-of-the-week, “Cagney and Lacey,” which turned into the hit series.  Lumbly starred as ‘Detective Mark Petrie’ for the show’s seven-year run.

Lumbly’s extensive feature credits include his role opposite Robert De Niro and Cuba Gooding Jr. in “Men of Honor” and “Everybody’s All-American” with Jessica Lange and Dennis Quaid. Other film credits include “How Stella Got Her Groove Back,” “South Central,” “Pacific Heights,” “To Sleep With Anger,” “The Bedroom Window,” “The Adventures of Buckaroo Banzai” and “Caveman.”  More recently, he starred as ‘Sam Nujoma’ in “Namibia: The Struggle for Liberation.”

For television, Lumbly starred in the telefilms “Color of Friendship” (directed by Kevin Hooks), “Little Richard,” “On Promised Land,” “The Ditchdigger’s Daughters,” “Nightjohn” and more recently “Sounder,” ABC’s telefilm remake of the 1972 classic. Lumbly also starred as the voice of action hero ‘J’onn J’onzz/Martian Manhunter,’ in the Cartoon Network’s animated series “Justice League.”

Off Center is Center REP’s second stage season of new plays and musicals. Theatre that is not only new, but adventurous, thought-provoking and brazen.  In the intimate 130-seat Knight Stage 3, where you are right on top of the action. With the same excellence and professional standards that you’ve come to expect from Center REP.

Center REPertory Company, the resident professional theatre company of the Lesher Center for the Arts (LCA), will be celebrating its 46th Subscription Season of high-quality theatrical productions during 2012-2013. Center REPertory Company’s mission is to celebrate the power of the human imagination by producing emotionally engaging, intellectually involving, and visually astonishing live theatre and, through our outreach and education programs, to enrich and advance the cultural life of the communities we serve. 

Director’s Matinee. Join Center REP’s Artistic Director, Michael Butler, for an engaging discussion of the afternoon’s performance on October 21st at 2:30 pm.  Michael often enlists the cast as well as some of the show’s designers to add their perspectives to this always-lively dialogue.

Teacher’s Day. Center REP hosts area teachers from elementary schools, middle schools, high schools and colleges for a matinee at the theatre! This is a great way to honor teachers. By enjoying the performance and then participating in the Director’s Post-Show discussion, teachers are provided tools to broaden their students’ understanding of live theatre. Call 925-295-1420 and press 1 for more information or to take advantage of this discount.

 

* Member of Actors Equity Association

Continue Reading

Head of Colorado’s Prisons Is Fatally Shot at Front Door of HiHome

The head of Colorado’s Department of Corrections was fatally shot Tuesday night as he opened the front door of his home, the authorities said, hours before Gov. John W. Hickenlooper was scheduled to sign into law a series of restrictive gun control measures.

The department’s executive director, Tom Clements, 58, lived with his family in Monument, near Colorado Springs in central Colorado, the authorities said. The police have not identified a suspect.

Mr. Hickenlooper announced the news on his Facebook page early Wednesday, calling Mr. Clements “unfailingly kind and thoughtful.”

“I am so sad,” he wrote. “I have never worked with a better person than Tom, and I can’t imagine our team without him.”

Mr. Clements, whom Mr. Hickenlooper appointed to the post in January 2011, oversaw the state’s public and private prison system and parole operations. He is survived by a wife and two daughters, the governor said in the Facebook post.

On Wednesday, Mr. Hickenlooper is expected to sign three gun bills into law. They would require background checks for all gun transfers, charge firearms consumers for those background checks and limit magazine capacities to 15 rounds.

Some county sheriffs in the state have publicly vowed not to enforce the measures.

From the New York Times

Continue Reading

Greedy San Francisco Musicians Turn Down Federal Mediator Recommendation of Cooling Off Period, Forcing SF Symphony to Cancel New York Performances

The Musicians of the San Francisco Symphony (who make $165,000 annually, plus platinum healthcare and pension funds and don’t even work 12 months) have rejected a federal mediator’s proposal to resume playing concerts during a “cooling off” period while negotiations over the collective bargaining agreement continue. The Symphony’s administration was willing to abide by the federal mediator’s recommendation, based on developments over the past three days of talks.

As a result of the musicians’ continuing work stoppage, the orchestra’s three-city East Coast tour on March 20-23 will not go forward.  The tour was set to include performances at Carnegie Hall March 20 and 21, the New Jersey Performing Arts Center in Newark on March 22, and the Kennedy Center in Washington, D.C. on March 23. The ongoing five-day musicians’ strike has already forced cancellations of four concerts in San Francisco.

Over the past three days of lengthy negotiations, overseen by a federal mediator, the musicians’ union rejected the latest administration proposals and continued their strike.

Several proposals by the administration have been rejected by the musicians’ union.  The most recent proposal offered increases in musician compensation to achieve a new annual minimum salary of $145,979 with annual increases of 1% and 2% for the latest two-year proposal.  Contractual benefits also included a $74,000 maximum annual pension, 10 weeks paid vacation, and full coverage health care plan options with no monthly premium contributions for musicians and their families for three of the four options.  Additional compensation for most active musicians also includes radio payments, over-scale, and seniority pay which raises the current average pay for SFS musicians to over $165,000.

“We are deeply disappointed that the musicians have continued to reject proposals for a new agreement and that the musicians will not proceed with our planned East Coast tour,” said Brent Assink, Executive Director of the San Francisco Symphony.  “We have negotiated in good faith since September, have shared volumes of financial information, and have offered many different proposals that we had hoped would lead to a new agreement by this time.  We will continue to work hard to resolve this situation.”

In the current economic environment, the San Francisco Symphony is facing the same challenges that many other orchestras and arts organizations around the country are facing.  For all four years of its most recent collective bargaining agreement with its musicians, operating expenses have outpaced operating income.  The Orchestra has incurred an operating deficit in each of those years.

As a non-profit organization, the Symphony’s financial statements are audited annually by an independent certified public accounting firm.  These statements and related tax filings are publicly available in accordance with the law.  Since negotiations began, the administration has been cooperative in sharing financial records and responded to the union’s requests for information in a timely manner.  Since September, that includes over 50 formal requests for which over 500 pages of documentation were provided.

The administration has also offered to cooperate with third party financial consultants designated by the musicians to review the audited financial statements.  In addition, the administration had offered the musicians the opportunity to have two members join the organization’s Audit Committee of the Board of Governors.

The administration remains willing to continue negotiations with the musicians’ union under the auspices of a federal mediator in an effort to achieve a mutually agreeable contract. The administration will continue to work with the musicians to respond to requests for information, including requests about the Symphony’s finances.

Today’s rejection of the administration’s latest proposal also represents the latest in a series of delays by the musicians’ union in working with the administration on an agreement.  While the administration provided its first proposal October 15, 2012 and offered six subsequent proposals, the musicians’ union did not formally respond to any administration proposal until mid-January 2013. The union did not formally respond to any of this information until just over 60 days ago, weeks after the November 24, 2013 expiration of the four-year contract.

Media may contact Oliver Theil, SFS Director of Communications, for more details on the negotiations at (415) 264-1241, by email atotheil@sfsymphony.org, or visit www.sfsymphony.org/press.

 

For Ticketholders to Cancelled Concerts in San Francisco:

Refunds and exchanges will be offered for all cancelled Davies Symphony Hall concerts. We deeply appreciate your patience during this difficult time.

We apologize again for the inconvenience. Our Box Office opens at 10am on Monday and can help you with the following options for your tickets:

  • Exchange your tickets for another San Francisco Symphony performance this season
  • Donate your tickets, as the total ticket value is tax deductible to the extent permitted by law
  • Exchange your tickets for a Gift Certificate, which can be used at any time
  • Receive a refund for the value of the ticket

Please contact the San Francisco Symphony Box Office with your preferred option in the following ways:

  • email at tickets@sfsymphony.org and include your name and email address, and your preferred option
  • by phone at (415) 864-6000
  • in person at the Box Office on Grove St., between Van Ness and Franklin.

Box office hours this week are 10am – 6pm Monday – Friday, Saturday Noon – 6pm

 

Continue Reading

No Debt Crisis in U.S. Now: There’s no immediate debt crisis, Boehner says, agreeing with Obama

By Christi Parsons, Los Angeles Times

WASHINGTON — The country isn’t facing an immediate debt crisis, House Speaker John Boehner(R-Ohio) said Sunday, but he argued that Congress and the president must reform entitlements to avert one that lies dead ahead.

“We all know that we have one looming,” Boehner said on ABC’s “This Week”. “And we have one looming because we have entitlement programs that are not sustainable in their current form. They’re going to go bankrupt.”

Boehner expressed agreement with Obama’s statement in an ABC interview the other day that the debt doesn’t present “an immediate crisis.”

But Boehner took issue with Obama’s assertion that it doesn’t make sense to “chase a balanced budget just for the sake of balance.”

The new spending plan from House Republicans would balance the budget in 10 years, a priority Boehner said this morning is important to the economy.

“Balancing the budget will, in fact, help our economy,” Boehner said. “It’ll help create jobs in our country, get our economy going again, and put more people back to work.”

“The fact that the government continues to spend more than a trillion dollars every year that it doesn’t have scares investors, scares businesspeople, makes them less willing to hire people,” he said.

In a wide-ranging interview, Boehner said the House would “review” any gun control measure that came out of the Senate. He restated his opposition to gay marriage, and said that, unlike his fellow Ohio Republican, Sen. Rob Portman, he can’t imagine a situation in which he would change his mind. Portman said this week that his views had evolved since he found out his son is gay.

Dwelling on budget issues, Boehner said he has a good relationship with Obama and trusts him, and that a lack of good relations is not the problem getting in the way of a sweeping deficit-reduction plan.

The challenge is in overcoming big differences, he said.

“When you get down to bottom line,” he said, “if the president believes that we have to have more taxes from the American people, we’re not going to get very far.”

“Washington has responsibility, to our seniors and our near seniors, that we firm up these programs so that they’re there for the long term,” Boehner said.

“Because if we don’t do it, not only will they not get benefits, we will have a debt crisis right around the corner. We have time to solve our problems. But we need to do it now.”

 

Continue Reading