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District Attorney Paul Gallegos' fraud lawsuit halted by California Supreme Court

By NATHAN RUSHTON, The Eureka Reporter
Published: Apr 24 2008, 5:59 PM · Updated: Apr 25 2008, 12:31 AM
Category: Local News
Topic: PALCO

Ending a five-year legal odyssey through the state’s court system, the California Supreme Court has refused to review Humboldt County District Attorney Paul Gallegos’ appeal of his fraud lawsuit against The Pacific Lumber Co.

The Supreme Court acted on Wednesday to deny the petition from Gallegos to review his appeal of the First District Court of Appeal’s ruling in January, which upheld a Humboldt County Superior Court ruling that tossed out his lawsuit.

The Supreme Court also denied his petition seeking depublication of the Appellate Court’s lengthy written ruling, which now becomes established case law.

With the high court’s ruling, Gallegos has no further ability to appeal.

Gallegos alleged in his original lawsuit filed in Humboldt County Superior Court in 2003 that PALCO intentionally committed fraud to increase timber harvesting when it manipulated reports during the environmental review phase of PALCO’s Sustained Yield Plan for the historic Headwaters Deal in 1999.

But in a 2005 decision, visiting Judge Richard Freeborn sustained a previous court ruling that Gallegos’ lawsuit had no legal basis and that PALCO’s submission of an allegedly erroneous report and the subsequent resubmission of corrected data were protected under California Civil Code “litigation privilege.”

Gallegos appealed Freeborn’s ruling to California’s First District Court of Appeals, which upheld the ruling that the fraud charges brought against PALCO under unfair competition laws weren’t legally sufficient to warrant a trial.

But going beyond just affirming the lower courts ruling, the appellate court justices published a rare and critical 23-page decision and opinion that stated Gallegos failed to prove that his case could be fixed to move forward and even if it did, the evidence presented “would not justify their prevailing at trial.”

Following that ruling, Gallegos held a news conference and adamantly defended his decision to pursue the lawsuit despite it being dismissed twice because the court found it had no legal merit.

Gallegos did not return a phone call to comment Thursday.

In a written statement Thursday, a PALCO official said Gallegos could not state a single valid legal claim even after the court gave him numerous opportunities to amend his complaint.

“The trial court, the appellate court and now the California Supreme Court have all recognized this case to be more an exercise in spite and sloganeering than an action of any substance or legal merit,” stated Frank Bacik, PALCO’s vice president and general counsel, who responded to the news in a statement Thursday.

“There’s nothing left now but to marvel at the truly irresponsible waste of public money, time and energy this case represents.”

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Anonymous — , (other) — Apr 24 2008, 7:17 PM

Gallegos is quickly being revealed as the empty suit he truly is.

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Anonymous — , (other) — Apr 25 2008, 8:16 AM

NOW MAYBE HE CAN LEAVE PALCO ALONE AND GO AFTER THE REAL PROBLEMS IN HUMBOLDT COUNTY. AFTER ALL THAT IS HIS JOB. MAYBE HE NEEDS TO READ UP ON WHAT A DA REALLY DOES. DOES CR OFFER A CLASS HE CAN TAKE? I WILL GLADLY PAY FOR HIM TO ATTEND.

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Anonymous — , (other) — Apr 25 2008, 8:30 AM

Bafoon... I hope everyone remembers his incompetence on Election Day!

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Anonymous — , (other) — Apr 25 2008, 9:10 AM

I'd like to see him use those new rifles on the PALCO Front, certain he would be able to find volunteer fighters to dispatch these beasts to Hell.

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Anonymous — , (other) — Apr 25 2008, 9:28 AM

I like the guy, but He should have never catered to those envirocreeps

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Anonymous — , (other) — Apr 25 2008, 9:51 AM

I often wondered why Gallegos didn't sue Palco when he was in private practice. Was it because he didn't have public money to play with? Perhaps now our "deer in the headlights" D.A. can get back to surfing. At least that doesn't cost the taxpayers much. Thank you Humboldt County "progressives" for electing this empty suit.

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Anonymous — , (other) — Apr 25 2008, 10:16 AM

This post removed due to obscenities.

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Anonymous — , (other) — Apr 25 2008, 8:53 PM

Annonymous @ 9:10, I'm reporting your comment as a terrorist threat. I hope they trace your URL and throw you into Guantanamo Bay.

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Anonymous — , (other) — Apr 25 2008, 9:59 PM

Mr.Gallegos is not the only good lawyer who has taken on PALCO.. Bill Bertain..other great Humboldt County lawyers..

Who in the sam-hill is going to be going to the defense of PALCO... the dude from Texas.. gotcha..and gotcha good.

What, exactly are you trying to say.. that the entire reign of terror inflicted on us by the PR folks. ..{maryB..and other..} They really cared about the collateral destruction..that followed every move they made..

Dude..they made suckers out ya.!..They made suckers out of me..almost.. but at least I have a little yellow line running up my back to my brain..that clicks in sometimes..and says to me..What? What, hey..dude..?

Mr. Maxxam..and Ms. Feinstein..walk away..with no hurts..really... they are both gazzilionaires.. did I spell that right..no.

Corporate dogs...will not exactly suffer from the end run.of this mess. Who will??
Someone wrote an item...said Scotia is not dead... Sure..it ain't..and Samoa ain't dead..
and Eureka ain't dead...yet..

The biggest industry between Scotia and Fortuna is drugs, meth, and alcohol..and mental illness.. and mental illness..Mr.Obama was write..right.

Hillary Will has the right idea.. speed on out of here..fast...faster..yee!

am I still on topic.. maybe not..
George Shieman gshieman@aol.com

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