City’s Legal Team Fired; Pollution Suit on Hold
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The city’s lawsuit against businesses alleged to be polluters was postponed for a month after the City Council fired the city attorney and legal team for presenting a multimillion-dollar bill without resolving the problem.
On Wednesday, U.S. District Judge Frank C. Damrell Jr. in Sacramento chastised the Wall Street company that lent Lodi money to sue alleged groundwater polluters.
The federal judge also suggested that Lehman Bros. forgive the city’s $21-million debt resulting from the long, costly process.
Damrell had previously raised questions about the role of Lehman Bros. It had lent the city $16 million in 1999 to bankroll its environmental lawsuit in exchange for more than 20% interest on its investment.
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