With no merger deal, failed SPAC faces lawsuit over legal fees

With no merger deal, failed SPAC faces lawsuit over legal fees

(Reuters) – Law organization White & Situation has sued a distinctive objective acquisition firm for much more than $8.2 million in authorized service fees, boasting it stiffed the business right after failing to consummate a prepared $480 million merger and then announcing designs to wind down this month.

New York-founded White & Situation sued former client Colonnade Acquisition Corp II and its administrators in New York point out courtroom late Monday, arguing the organization will be “irreparably harmed” if the blank-examine enterprise liquidates and dissolves before spending the service fees it owes.

Blank-check company Colonnade, led by buyers Joseph Sambuco and Remy Trafelet, elevated $300 million in an IPO and started off investing on the New York Stock Exchange on March 10, 2021. In August 2022, payments service provider Plastiq stated it would go general public by means of a merger with the organization, generating a corporation with a benefit of about $480 million.

The SPAC did not entire the mix by its March 12, 2023 deadline, even so, and on March 9 issued a press release that it will stop functions, redeem the general public shares and dissolve.

“It is unlucky White & Situation took this motion provided the mutually agreed-upon phrases of the engagement letters and the totality of the conditions,” Colonnade said in a assertion on the lawsuit Tuesday.

White & Circumstance mentioned it done legal operate for West Palm Seaside, Florida-dependent Colonnade from November 2020, when the SPAC dealmaking frenzy was in total swing, right until this month.

The SPAC market place has sagged as regulatory scrutiny tightens and growing volatility spooks buyers, triggering better redemptions. A number of SPACs have returned cash they lifted soon after failing to obtain suited targets.

Two engagement letters with Colonnade explained White & Case’s premiums and the scope of its get the job done and claimed the business would search for payment at a afterwards day, with the earlier letter noting the business would invoice the organization at the time it shut or abandoned a deal and the latter stating payment would be thanks on closing the deal, the agency said.

White & Situation mentioned Colonnade “either disregarded or rebuffed” quite a few requires requesting payment.

The regulation business mentioned it contacted the blank-check organization as recently as late February in search of payment of the service fees, which totaled about $8,289,100. The SPAC stated in response that it did not owe the business any dollars for the 3 yrs of get the job done due to the fact it did not complete the enterprise transaction, according to the grievance.

The case is White & Circumstance LLP v. Colonnade Acquisition Corp. II et al, Supreme Court docket of the State of New York, County of New York, No. 651428/2023

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Favre must remain in welfare lawsuit, Mississippi argues

Favre must remain in welfare lawsuit, Mississippi argues

JACKSON, Overlook. (AP) — A choose must dismiss a request from retired NFL quarterback Brett Favre to be taken off from a civil lawsuit that seeks to recover misspent welfare money in Mississippi’s biggest-ever community corruption situation, the condition Office of Human Expert services reported this week.

Thousands and thousands of federal welfare pounds ended up intended to support small-earnings Mississippi citizens — some of the poorest people in the region — but had been rather squandered on projects supported by wealthy or perfectly-connected people, including tasks backed by Favre, prosecutors say.

No criminal fees have been brought from the NFL Hall of Famer, despite the fact that other people have pleaded guilty to their component in the misspending.

Favre’s attorneys argue the Department of Human Providers is suing Favre, “a Mississippi and nationwide movie star,” to deflect from the department’s individual part in letting fraud, and have have filed two sets of papers urging a Mississippi judge to dismiss Favre from the fit.

Kaytie Pickett, an lawyer for the division, responded that Favre’s attorneys failed to provide reliable legal arguments to get their customer out of the lawsuit.

“Favre’s submission is not a movement to dismiss it is a extensive press release,” Pickett wrote in courtroom papers filed Monday. “The court must disregard Favre’s diatribe.”

The Office of Human Companies past calendar year sued Favre and extra than 3 dozen other people or firms.

The accommodate states cash was misspent on factors like $5 million to assist make a volleyball arena that Favre supported at his alma mater the College of Southern Mississippi, in which his daughter played the sport, and $1.7 million towards development of a concussion procedure drug by a organization in which Favre was an trader.

Those people who have pleaded guilty to legal prices consist of John Davis, a former director of the Mississippi Division of Human Solutions and Nancy New, the director of a nonprofit firm who had ties to Favre and the volleyball and concussion drug tasks.

Favre has repaid $1.1 million he gained for talking service fees from New’s business, which expended Non permanent Help to Needy Families cash with approval from the Division of Human Solutions underneath Davis. Mississippi Auditor Shad White stated Favre, who life in Mississippi, by no means confirmed up to give these speeches.

Favre mentioned in October that he did nothing at all completely wrong and experienced been “ unjustly smeared ” in news protection of the welfare misspending.

Favre very first sought to be dismissed from the state’s civil lawsuit in November. The state revised its demand from customers towards him in December. His attorneys submitted papers in February, all over again inquiring a choose to dismiss Favre from the scenario.

His most current endeavor to get out of the lawsuit came a working day following he filed 3 defamation lawsuits in opposition to the auditor White and two former NFL players, Pat McAfee and Shannon Sharpe, who have sharply criticized Favre in their roles as nationwide sportscasters. White, McAfee and Sharpe had not filed court docket papers to reply by Friday, data present.

Fifth lawsuit filed against Snapchat by Seattle-based law firm

Fifth lawsuit filed against Snapchat by Seattle-based law firm

This thirty day period the Social Media Victims Legislation Centre brought forth its fifth lawsuit in opposition to Snap, Inc. alleging a collection of characteristics on the common social media app, Snapchat, let for a “Snapchat Drug Cartel” to run and hence has contributed to the deaths of 9 minors and young adults in several states. 

The accommodate was filed in the Exceptional Court of Los Angeles past 7 days, and is the fifth piece of litigation filed by the firm in opposition to Snap, Inc. because January 2022. 

“They [Snap, Inc.] should really be held liable for turning a blind eye to the hundreds of youngsters that die from [a] fentanyl overdose via illicit drugs received as a result of their platform,” Matthew Bergman, founder of the Heart instructed Fox News. 

The Center’s most recent wrongful loss of life lawsuit represents mothers and fathers from Florida, Colorado, California, Pennsylvania, Ga and Louisiana and alleges the parents’ kids died right after ingesting fentanyl-laced medications obtained via the application. 

SNAPCHAT LAWSUIT ALLEGES 8 FENTANYL Deaths Throughout 6 STATES RESULTED FROM Capsules Ordered By way of App

“In the eyes of the mothers and fathers, and they say this to me time and time yet again, if one kid is spared by this work, then it can be all worthy of it,” Bergman mentioned. “That is the way we experience and which is how we tactic it.” 

Due to the fact the Center’s 1st lawsuit versus the big-tech company it has come to stand for a full of 35 family members with identical allegations in direction of the social media application. 

The most modern lawsuit precisely references Snapchat’s “My Eyes Only” and “Snap Map” characteristics — boasting they empower the unlawful drug gross sales of fentanyl-laced, counterfeit supplements.

ISTANBUL, TURKEY - FEBRUARY 24: In this photo illustration a mobile phone screen displays the Snapchat logo in front of a keyboard in Istanbul, Turkey on February 24, 2020. 

ISTANBUL, TURKEY – FEBRUARY 24: In this picture illustration a cellular phone monitor displays the Snapchat brand in entrance of a keyboard in Istanbul, Turkey on February 24, 2020.  (Muhammed Enes Yildirim / Anadolu Company by way of Getty Photos)

“The disappearing information characteristic makes it quick for drug dealers to kind of have a menu [of drugs] and in many instances, we essentially have a true menu that they deliver these children to communicate about providing drugs normally at somebody’s doorsteps,” Bergman stated. “And they [dealers] do so with the awareness that the proof of this crime will be disappeared endlessly, concealed from law enforcement and hidden from dad and mom and concealed from any accountability.” 

Rebekah Brown stated she found a “menu” of drug offerings on her son’s Snapchat just after his death. 

Sept. 2, 2021, 18-calendar year-outdated Cole Brown died of fentanyl toxicity right after ingesting a counterfeit Percocet capsule ordered through Snapchat, in accordance to Rebekah Brown. 

During an interview with Fox News, the mom pointed to a sequence of screenshots from her son’s cell phone with the text “dependable” and “reputable” exhibited close to a listing of drug offerings. 

CALIFORNIA TEEN’S Demise FROM FENTANYL UNDERSCORES Risks OF SOCIAL MEDIA DRUG Marketplaces

Brown mentioned her son began experimenting with drugs just after struggling with his father’s passing and despair. 

“I hardly ever condoned in our residence – we were not drug end users, we weren’t alcoholics. You know, we did get our son enable,” she explained, battling back again tears. “He [Cole] was not seeking to die, you know, and little ones make problems, but these days they are dying from them.” 

Bergman holds a very similar placement, citing the impressionability of adolescents. 
 

U.S. Customs and Border Protection agents seized over 1.2 million fentanyl pills between two busts on Dec. 29.

U.S. Customs and Border Defense brokers seized about 1.2 million fentanyl pills involving two busts on Dec. 29. (U.S. Customs and Border Security)

“Let us be very clear, we do not condone the sale of medications or prescription medications that are illicit. We really don’t condone that in any way, form or variety,” the lawyer reported. “But we know that young folks make lousy selections, they should not have to die for it in each and every situation. These are not young children that are looking for fentanyl, they’re trying to find OxyContin, they’re searching for Percocet”. 

A spokesperson for Snapchat wouldn’t remark on the lively litigation but claimed the organization experienced designed concerted efforts over the previous two a long time to beat the problem to contain: technological know-how upgrades to detect and remove drug sellers, new protections for users and greater collaboration with regulation enforcement. 

The corporation stated considering the fact that September 2021 around 23{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8} of drug-related reviews gained from users pertaining to profits, had been pushed down to 3.3{c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8} in December of very last calendar year. 

Police officers check on a man who said he has been smoking fentanyl in downtown Seattle on March 14, 2022 in Seattle, Washington. Use of the powerful opioid has surged in the last several years, especially in Seattle's large homeless community. According to a recent report commissioned by Seattle Councilmember Andrew Lewis, the COVID-19 pandemic put undue pressure on the city's shelter system and delayed funds for new housing, leading to an increase in homelessness. 

Police officers verify on a gentleman who mentioned he has been smoking fentanyl in downtown Seattle on March 14, 2022 in Seattle, Washington. Use of the powerful opioid has surged in the past many several years, particularly in Seattle’s massive homeless local community. In accordance to a modern report commissioned by Seattle Councilmember Andrew Lewis, the COVID-19 pandemic place undue tension on the city’s shelter program and delayed cash for new housing, top to an maximize in homelessness.  ((Picture by John Moore/Getty Pictures))

In October of last year, Snapchat unveiled a instrument termed “Spouse and children Middle” for parents to watch and report regarding action. This week, the company debuted new written content controls for the resource to permit for dad and mom to “limit the type of content their teenagers can view on Snapchat.” 

Last thirty day period, during a listening to at the U.S. Senate Foreign Relations Committee on countering illicit fentanyl, Anne Milgram, administrator at the Drug Enforcement Administration, pointed blame at not only Snapchat, but instead, social media in its entirety

“We are in a quite diverse position than we ended up 20 many years ago prior to social media existed, where another person who may well be providing narcotics experienced a lot more of a own romantic relationship with the man or woman who was getting,” Milgram stated to the committee. “Currently, the cartels have an understanding of that if anyone dies from using their fatal fentanyl, that there are 100 million other people on Snapchat that they can sell their medication to.” 

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Later all through her testimony, Milgram additional: “We are on these social media internet websites, platforms, and we are viewing drug advertising and marketing and drug sales for these faux prescription products, fake oxys, fake Adderall, fake Percocet that have been up for months.” 

Milgram stated the current endeavours remaining created by social media platforms to fight illegal drug gross sales “are not ample.”

Here’s Why a Big Pork High Court Lawsuit Matters

Here’s Why a Big Pork High Court Lawsuit Matters

In a minimal-regarded case pending this phrase, Nationwide Pork Producers Council v. Ross, the U.S. Supreme Court docket will determine the constitutional validity of California voters’ 2018 ballot measure forbidding the sale of pork that does not come from animals born to pigs separately housed inside at the very least 24 square feet of usable ground space. The case has implications not just for the humane procedure of pigs but also for Congress’s ability to control commerce and states’ capacity to enact guidelines that influence other states on a variety of problems.

In industrialized U.S. agriculture, sows—female breeding pigs—are generally confined to “gestation crates,” which are scarcely more substantial than their bodies. In 2007, the biggest pork producer in the entire world, Smithfield Meals, declared it would phase out gestation crates and changeover to a “group housing” model. Nonetheless, in 2021, the Humane Culture of the United States sued Smithfield, alleging that underneath corporation coverage, “long durations of solitary, serious confinement start right before a sow’s being pregnant and go on for intervals of her being pregnant, and then repeat soon after her piglets are born,” with the end result that these extremely social animals “are intensively confined for approximately 50 {c024931d10daf6b71b41321fa9ba9cd89123fb34a4039ac9f079a256e3c1e6e8} their lifetimes.” The lawsuit argues that Smithfield is deceiving consumers about its production procedures in violation of Washington, D.C.’s Buyer Defense Procedures Act.

In 2018, California voters decided to do a little something about gestation crates. Named the “Farm Animal Confinement Initiative,” Proposition 12 prohibits the confinement of calves elevated for veal, breeding pigs, and egg-laying hens in areas beneath a certain amount of sq. toes in the point out. It also bans the sale of veal, raw pork, and eggs from animals held in more compact locations. Violations are thought of misdemeanors and have a $1,000 fine. The Humane Society sponsored the ballot initiative. Its president, Wayne Pacelle, discussed: “Californians know that locking farm animals in limited cages for the period of their lives is cruel and compromises foodstuff safety. All animals are worthy of humane remedy, primarily those elevated for foods.”

Opponents in just the egg and pork producer industries argued that the evaluate would increase foodstuff costs and prompt meat and egg shortages. Right after voters accepted the proposition 63-37, the sector groups sued the California food and agriculture secretary in federal court docket in California, boasting that Prop 12 violates the U.S. Constitution’s Commerce Clause, which empowers Congress to “regulate Commerce . . . amongst the quite a few States.” Though the Commerce Clause states absolutely nothing about restricting point out law, the Supreme Courtroom has interpreted it as implicitly prohibiting states from passing laws that disrupt economic things to do in the country as a whole. Only Congress can do that, according to the Court’s so-known as “dormant Commerce Clause” precedent. “The unavoidable influence of Proposition 12 is to control out-of-point out manufacturing,” the plaintiffs argued, because out-of-point out producers should transform their operations in get to market their pork in California. Simply because 87 percent of pork manufactured in the United States is eaten outdoors of California, they declare, the legislation impacts largely non-Californians.

The decrease federal court dismissed the situation in April 2020, ruling that Prop 12 “does not control extraterritorially simply because it does not goal solely interstate commerce and it regulates in-point out and out-of-state perform similarly.” The U.S. Courtroom of Appeals for the Ninth Circuit agreed, holding that Prop 12 doesn’t dictate the selling price of pork in California, and that any “upstream” results on how pork is produced and sold outside California do not violate the Structure.

At oral argument in advance of the Supreme Court docket on October 11, 2022, counsel for the pork sector discussed the economic conundrum for the pork industry:

Pigs go to a nursery, a finisher, then a slaughterhouse, wherever the packer butchers them into areas that are sold around the globe in response to desire. The only harmless system is to elevate all pigs the California way, which is what we see purchasers demanding, and the fees of accomplishing that inhere in pork pieces offered in locations exactly where buyers are unwilling to pay back extra to satisfy California’s coverage preferences. If Proposition 12 is lawful, New York can say that pigs have to have 26 feet of place and mail inspectors into farms to law enforcement compliance as California does.

Justices from equally ends of the ideological spectrum expressed worry that a ruling in favor of California voters would allow particular person states to impose their “moral” views on citizens of other states. Justice Elena Kagan posited that states could include “a large amount of policy disputes” into their regulations, these as by either requiring—or banning—products made applying union labor. Justice Brett Kavanaugh requested irrespective of whether a law could say “you cannot provide fruit in our state” if it’s harvested by undocumented men and women. Justice Amy Coney Barrett questioned counsel for California whether or not that condition could “pass a law that stated we’re not heading to get any pork from organizations that don’t call for all their employees to be vaccinated or from corporations that do not fund gender-affirming surgical treatment.” (The difference, retorted counsel, hinges on the output of products and not on business-extensive guidelines.)

The justices also probed the implications of siding with Prop 12’s challengers. States move regulations for their citizens every single working day, and it is not really hard to determine out-of-state impacts of a complete variety of rules that most people today would think are realistic matters for a individual point out to do. Justice Kagan requested counsel for the challengers, for instance, no matter whether it would be unconstitutional for a point out to require companies that import firewood into the condition to use specific pesticides, presumably on the rationale that the condition has an curiosity in protecting its citizens from wood-damaging pests from other states. Candidly, counsel responded indeed.


As with a great deal of constitutional regulation, the dilemma in this circumstance inevitably will come down to balancing some mixture of interests—the passions of California and its voters (not to mention their sows and calves and hens), the pursuits of other states and their citizens, and the passions of Congress in shielding its plenary prerogative less than the Structure to control interstate commerce. Mentioned Justice Neil Gorsuch to counsel for the challengers: “When the option you are promoting us appears to be that this Court docket ought to engage in a freewheeling balancing take a look at,” why not “defer to condition regulation on health and fitness and security?”

The moment again, the elephant (or pig) in the room is abortion, which the similar Court last calendar year despatched again to the states for regulation in Dobbs v. Jackson Women’s Wellbeing Organization. A federal district courtroom in Amarillo, Texas, is keeping a hearing this 7 days on a sweeping challenge to the Meals and Drug Administration’s ability to proceed to authorize the drug mifepristone for early-phrase being pregnant terminations. As Cornell regulation professor Michael Dorf wrote for Verdict:

If California can exclude pork solutions centered on moral opposition to the remedy of the pigs from which they arrived, can states with rigid abortion prohibitions exclude abortion pills sent from other states? So it would appear to be.

After all over again, a advanced issue of profound moral, moral, economic, political, and constitutional implications—and no apparent answer—lies at the toes of nine unelected people today in robes. Provided Congress’s wide electric power to regulate interstate commerce less than the Structure, the Courtroom could possibly do effectively this round to make a decision that it is for the democratically accountable legislative department to make the contact as to whether or not California went as well much.

“Robot Lawyer” Faces Lawsuit For Practicing Law Without A License In US

“Robot Lawyer” Faces Lawsuit For Practicing Law Without A License In US

“Robot Lawyer” Faces Lawsuit For Practicing Law Without A License In US

The circumstance is Faridian v. DoNotPay Inc

DoNotPay Inc, which works by using AI to supply legal expert services is facing a new lawsuit from a Chicago-primarily based regulation organization. The firm has claimed that DoNotPay has been practising law inadequately and lacks a license, Reuters noted.

DoNotPay “is not really a robot, a law firm, nor a regulation firm,” legislation firm Edelson claimed in a proposed class motion in San Francisco point out court dated March 3 and posted to the court’s public web site on Thursday. The criticism further argues: “DoNotPay does not have a regulation diploma, is not barred in any jurisdiction, and is not supervised by any lawyer.”

The lawsuit was submitted by California resident Jonathan Faridian, who explained he utilised San Francisco-based DoNotPay to draft demand from customers letters, a small claims courtroom filing and LLC functioning agreements and got “substandard and poorly carried out” outcomes.

DoNotPay CEO Joshua Browder responded on Twitter, saying the statements have “no merit” and that Faridian has “had dozens of prosperous purchaser rights situations with DoNotPay.”

Mr Browder reported Edelson founder Jay Edelson “encouraged me to begin DoNotPay,” proclaiming Edelson and legal professionals like him enrich them selves by way of course steps with minimal profit to consumers.

According to Reuters, Edelson responded in an e mail that Mr Browder and DoNotPay are seeking to “distract from their misconduct in any way achievable” and that “the difficulty for them is that DoNotPay has cheated so a lot of folks.”

Mr Browder launched DoNotPay in 2015 with a focus on responsibilities this sort of as preventing parking tickets, and it has expanded to include some legal providers, the lawsuit explained.

The assure of generative synthetic intelligence applications for apps these types of as lawful perform has received steam with the increase of OpenAI’s ChatGPT and other AI “chatbots” in modern months. DoNotPay created buzz previously this year when Browder said on Twitter the organization experienced strategies to use an AI chatbot to advise a defendant in website traffic courtroom.

Browder also mentioned his company would pay back $1 million to any individual willing to put on headphones and use its robot law firm for an argument prior to the U.S. Supreme Court docket.

Following criticism, he later on explained on Twitter that he experienced been given “threats from Condition Bar prosecutors” and DoNotPay would postpone its targeted visitors courtroom circumstance.

He also said in the January tweet that DoNotPay would promptly get rid of “non-customer authorized legal rights solutions.” According to the lawsuit, those items are even now available on its web page.

The lawsuit mentioned DoNotPay violated California’s unfair level of competition law by engaging in the unauthorized practice of regulation. It seeks a court get declaring the firm’s perform illegal and unspecified damages.

The situation is Faridian v. DoNotPay Inc, Remarkable Court of the Point out of California for the County of San Francisco, No. CGC-23-604987.

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Malaika Arora Was Spotted In A Lovely Pink Gown In the Metropolis

Gavin Newsom files housing lawsuit against Huntington Beach

Gavin Newsom files housing lawsuit against Huntington Beach

Gavin

Lawyer Normal Rob Bonta bumps elbows with California Gov. Gavin Newsom just after he was sworn in as Californias 34th Legal professional General through a ceremony on Friday, April 23, 2021, in Sacramento. Bonta, 49, will come to be the initial Filipino American to head the California Division of Justice.

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A yearslong battle between California and Huntington Beach officials reached a climax on Thursday, as both sides unveiled they were suing one another over the state’s right to enforce housing laws on local governments in order to alleviate its crippling affordable housing crisis.

Gov. Gavin Newsom and Attorney General Rob Bonta on Thursday morning announced that the state filed a lawsuit in Orange County Superior Court alleging that Huntington Beach was unlawfully blocking housing production. It’s the second time the state has sued the coastal city in Orange County for failing to comply with California housing laws.

“Huntington Beach is ‘Exhibit A’ in what’s wrong with housing in the state of California,” Newsom said during a virtual press briefing. “They’re ‘Exhibit A’ in what NIMBYism looks like, and they are not representing the people they claim to represent.”

Hours later, Huntington Beach Mayor Tony Strickland revealed the city filed its own federal lawsuit on Thursday challenging a daunting state mandate that the city identify enough land to accommodate the construction of thousands of new housing units.

The lawsuit argues that the state has overreached on the city’s constitutional right to make its own local land use decisions, according to Strickland. The state’s latest round of Regional Housing Needs Allocation requires Huntington Beach to zone for 13,368 units to be built inside the city limits from October 2021 through 2029.

“Their goal is just to urbanize quiet, private-property-owning communities,” Strickland said about state officials during a Thursday afternoon press briefing in front of Huntington Beach City Hall.

He called the city’s lawsuit the “first major step in taking the governor and the state to task over their faulty narratives about housing” and for “stripping charter cities of their ability to make their own decisions.”

California, Huntington Beach file dueling housing lawsuits

In the state’s lawsuit, Bonta has accused Huntington Beach of stifling affordable housing projects, infringing on the rights of property owners and knowingly violating state housing laws.

At issue is a recent decision by officials in the coastal city of Orange County to ban the construction of new accessory dwelling units and projects under Senate Bill 9, a state law that took effect at the start of 2022 allowing property owners to build additional units on land that was previously restricted to a single-family home. If left in effect, the moratorium could block the construction of up to 600 new Accessory Dwelling Units (ADUs), as well as an unknown number of potential SB 9 projects, according to the state.

The state has filed a motion for a preliminary injunction to stop the city from implementing the ban until the ongoing litigation has concluded.

“The laws are clear, as is Huntington Beach’s willful and intentional refusal to follow them,” Bonta said Thursday. “(City officials) have asked for this and they have earned this.”

Despite the lawsuits, Huntington Beach City Attorney Michael Gates said the city was in the process of completing its state-mandated housing plan. He also said the city had not officially implemented the ban on ADUs or projects under SB9 and that the final decision would be made later this month.

“In my view, the whole press conference today was a non-issue,” Gates said about the state’s lawsuit announcement. “It was a bunch of bluster.”

An ongoing legal battle over state housing laws

The dueling lawsuits mark the latest salvo of a yearslong back and forth between the state and Huntington Beach over the city’s rejection of state policies meant to increase access to affordable housing across California.

In January 2019, California sued Huntington Beach in the state’s first-ever lawsuit accusing a local government of ignoring a state law mandating that cities and counties identify enough properties to accommodate new residential development. The city agreed to settle the case a year later by adding an amendment to their housing plan that made it easier for developers to build multi-family housing.

Bonta in 2021 created a team within the California Department of Justice dedicated to enforcing state housing laws. Newsom has repeatedly stated that a top priority of his second term is to hold local governments accountable for reducing the state’s homeless crisis and increasing its affordable housing stock.

“At the end of the day, the state vision as it relates to housing cannot be realized anywhere else except locally,” Newsom said. “At the end of the day, we’re all in this together, and we have a responsibility to one another.”

Housing development stifled in Huntington Beach

The new round of litigation comes two days after the Huntington Beach City Council took an initial vote to limit homebuilding in the seaside town by ignoring all applications filed by developers under the so-called “builder’s remedy” provision, according to reports. Builder’s Remedy is part of a 1990 California law that allows developers to bypass local zoning restrictions in cities that fail to enact a state-approved housing plan.

If the city confirms its decision regarding builder’s remedy through a second vote on March 21, the state will update the lawsuit to fight that as well, according to Gustavo Velasquez, director of the state’s Department of Housing and Community Development.

Velasquez, who said his department has offered to provide tools and support to help the city of Huntington Beach come into compliance, called it a “disappointing moment in California’s battle against the housing crisis.”

“Here we are using possible litigation as a last resort to ensure that Huntington Beach — like all cities and counties across the state — follow the laws that our elected officials have put in place to make it easier to pass this desperately needed housing at all income levels that will alleviate the housing crisis,” he said.

Ty Youngblood of Corona said he took out a loan and had already made considerable investments to prepare to build an ADU on his aging mother’s property in Huntington Beach when the city council announced the ban.

His family planned to move onto the property to care for his 82-year-old mother and wanted to build a separate space to ensure that she was able to keep some of her independence. Now, those plans are up in the air and Youngblood faces mounting debt as his ADU application goes unprocessed.

“It is unacceptable for the city council to disregard state law and deny us the opportunity to build an ADU,” he said Thursday. “The decision not only affects my family but also impacts the broader community’s ability to create alternative living spaces that meet their unique needs and circumstances.”

This tale was initially revealed March 9, 2023, 11:01 AM.

Associated stories from Sacramento Bee

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Maggie Angst covers California politics and Gov. Gavin Newsom for The Sacramento Bee. Right before joining The Bee’s Capitol Bureau, she worked for the Mercury News and East Bay Situations where by she lined San Jose Town Corridor and later on wrote organization stories on the breaking information team.