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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

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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.”

 

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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
.

 

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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/

 

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Pistorius Rebutes Murder Charge in Court

By LYDIA POLGREEN and ALAN COWELL From the New York Times

PRETORIA, South Africa — Facing a charge of premeditated murder in the death of his girlfriend, Oscar Pistorius, the double amputee track star and one of the world’s best-known athletes, denied on Tuesday that he had intended to take her life when he opened fire at a closed bathroom door at his home last week, saying he did not know that she was on the other side.

“I fail to understand how I could be charged with murder, let alone premeditated,” he said in an affidavit read to the packed courtroom by his defense lawyer, Barry Roux, “I had no intention to kill my girlfriend.”

His assertion contradicted an earlier accusation from the prosecutor, Gerrie Nel, that Mr. Pistorius committed premeditated murder when he rose from his bed, pulled on artificial legs, walked more than 20 feet from his bedroom and pumped four bullets into the door, three of which struck his girlfriend, Reeva Steenkamp, on the other side.

It was the first time that either the prosecution or Mr. Pistorius had publicly provided details of their radically divergent accounts of a killing that has shocked the nation and made news around the world.

The case broke open last Thursday when the police arrived at Mr. Pistorius’s house in a gated community here in Pretoria to find Ms. Steenkamp dead from gunshot wounds.

Developments since then have been all the more dramatic, since Mr. Pistorius had been an emblem of triumph over adversity, his sporting achievement on a world stage blending with the glamour of celebrity at home. Mr. Pistorius, 26, and Ms. Steenkamp, 29, a model and law school graduate, had been depicted as a golden couple.

“We were deeply in love and I could not be happier,” said Mr. Pistorius’s affidavit, read at a bail hearing. “I know she felt the same way.” As it was read out loud, the athlete wept so uncontrollably that the magistrate, Desmond Nair, ordered a brief recess to permit him to regain his composure.

Magistrate Nair adjourned the case until Wednesday without ruling on whether the athlete would be granted bail.

Mr. Pistorius said he and Ms. Steenkamp had gone to bed early on Wednesday night, but in the middle of the night he heard a noise from the bathroom and went to investigate on his stumps, not his artificial legs.

“I am acutely aware of violent crime being committed by intruders entering homes,” he said in the affidavit. “I have received death threats before. I have also been a victim of violence and of burglaries before. For that reason I kept my firearm, a 9 mm Parabellum, underneath my bed when I went to bed at night.”

He was nervous, he said, because the bathroom window did not have burglar bars and contractors who had been working there had left ladders behind.

The room was dark, he said, and he did not realize that Ms. Steenkamp was not in bed. He felt vulnerable and fearful without his prosthetics and opened fire at the door, he said, calling to Ms. Steenkamp to telephone the police.

Only then did he realize that she was not in bed, he said. He put on his artificial legs and tried to kick down the door before breaking it open with a cricket bat to discover Ms. Steenkamp.

He carried her downstairs, he said, and “she died in my arms.”

Earlier, Magistrate Nair said he could not exclude premeditation in the killing, so Mr. Pistorius’s bail application will be much more difficult. But he said he would consider downgrading the charges depending on evidence at subsequent hearings.

Mr. Nel said Ms. Steenkamp, who had just made her debut in a reality television show, had been in a tiny room measuring less than 20 square feet when the shots rang out. “She could not go anywhere,” he said. “It must have been horrific.”

“She locked the door for a purpose. We will get to that purpose,” he said.

But Mr. Roux, a lawyer representing Mr. Pistorius, said the defense would “submit that this is not a murder.” He said there was no evidence that Mr. Pistorius and Ms. Steenkamp had fought and no evidence of a motive. He also challenged the prosecution to produce a witness to corroborate its version of Mr. Pistorius’s actions.

“Scratch the veneer” of the prosecution case, he said, and there is no evidence to support it.

“All we really know is she locked herself behind the toilet door and she was shot,” Mr. Roux said.

Mr. Nel, the prosecutor, however, declared: “If I arm myself, walk a distance and murder a person, that is premeditated. The door is closed. There is no doubt. I walk seven meters and I kill.”

He added: “The motive is, ‘I want to kill.’ That’s it.”

If convicted of premeditated murder, Mr. Pistorius would face a mandatory life sentence, though under South African law he would be eligible for parole in 25 years at the latest. South Africa abolished the death penalty in 1995.

Mr. Pistorius was appearing in court for the second time since Friday. He arrived looking grim-faced, his jaw set. But, as during his earlier appearance, he broke down in tears when the prosecutor said that he had “killed an innocent woman.”

As the court went into a midday recess, Ms. Steenkamp’s private funeral service began in the southern coastal city of Port Elizabeth, her hometown, with six pallbearers carrying a coffin swathed in a white cloth and white flowers as mourners expressed dismay and rage. More than 100 relatives and friends attended the funeral at the Victoria Park crematorium.

“Why? Why my little girl? Why did this happen? Why did he do this?” June Steenkamp, the victim’s mother, told The Times of Johannesburg.

Gavin Venter, a former jockey who worked for the victim’s father, a horse trainer, said on Tuesday: “She was an angel. She was so soft, so innocent. Such a lovely person. It’s just sad that this could happen to somebody so good.”

The killing has stunned a nation that had elevated Mr. Pistorius as an emblem of the ability to overcome acute adversity and a symbol of South Africa’s ability to project its achievements onto the world stage.

Mr. Pistorius was born without fibula bones and both of his legs were amputated below the knee as an infant. But he became a Paralympic champion and the first Paralympic sprinter to compete against able-bodied athletes at the 2012 London Olympics.

But several companies have now withdrawn lucrative sponsorships and his case has played into an emotional debate in South Africa about violence against women.

Members of the Women’s League of the ruling African National Congress protested outside the building, waving placards saying “No Bail for Pistorius,” Reuters reported.

Lydia Polgreen reported from Pretoria, and Alan Cowell from London.

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San Francisco City Attorney Blasts CPUC, PG&E Over DLA Piper Law Firm Selection in San Bruno Blast: Will DLA Piper Recuse Itself?

DLA Piper Law Firm Conflict in CPUC PG&E Case

More Bad News for DLA Piper: Conflict is raised by SF City Attorney. DLA Piper is adverse to S.F. in litigation, claims several utilities among its clients. CPUC Has Refused Comment on Conflict, Call for DLA to Recuse Firm

San Francisco City Attorney Dennis Herrera today expressed serious concerns about the California Public Utilities Commission’s unilateral appointment of former U.S. Senator George Mitchell and DLA Piper to mediate a settlement of enforcement actions against Pacific Gas and Electric Company over the deadly September 2010 explosion of its natural gas pipeline in San Bruno, Calif.

Mitchell currently serves as chairman emeritus of DLA Piper LLC, an international law firm that represents multiple parties currently involved in separate litigation against the City and County of San Francisco. The firm’s utility sector clients include Southern California Edison and Exxon Mobil.

“I have the highest regard for U.S. Sen. George Mitchell, and I greatly admire him for a distinguished public service career that includes major diplomatic achievements in Northern Ireland and the Middle East,” said Herrera. “But the legitimacy of an enforcement action involving one of the deadliest gas pipeline catastrophes in California history must be beyond reproach. What’s at stake in these proceedings is the safety of millions of Californians, and they deserve a process untainted by the appearance of utility industry bias. I don’t doubt Sen. Mitchell’s integrity or good intentions.”

Herrera continued “But the fact is, he leads a law firm that is both adverse to San Francisco in litigation, and that represents major gas utilities involved in cases before the CPUC. Moreover, the commission’s decision to unilaterally appoint a mediator raises larger questions about why the CPUC elected to appoint an outside mediator in the first place. It’s possible that mediation could prove helpful. But it is far more important that CPUC live up to its obligations as an industry regulator that protects the public interest.”

Herrera has been sharply critical of the CPUC following revelations from an independent review panel’s 2011 investigation into the San Bruno tragedy, which concluded that the commission’s “culture serves as an impediment to effective regulation,” and which went on to fault state regulators who “did not have the resources to monitor PG&E’s performance in pipeline integrity management adequately or the organizational focus that would have elevated concerns about PG&E’s performance in a meaningful way.” In July 2011, Herrera initiated steps to sue the CPUC along with federal regulators for failing to reasonably enforce federal gas pipeline safety standards as required by the U.S. Pipeline Safety Act. Herrera later elected to omit CPUC as a defendant after the commission showed signs of progress.

DLA Piper LLC contacted Herrera’s office last Friday, before the CPUC announced its appointment of Mitchell to serve as mediator, to inform city lawyers about litigation and other matters in which DLA Piper is currently adverse to the City and County of San Francisco. Those cases include litigation involving hotel chains and airlines.

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