Litigation costs mentioned in our earlier Town of Mammoth budget story came, in part, from the Hot Creek lawsuit. Hot Creek developers sued the Town for alleged breach of contract for development at Mammoth Airport. A jury found for Hot Creek and awarded them $30 million in damages. The Town has now appealed and the process could take another year and a half.
Town Attorney Peter Tracy said that the notice of appeal on the case was filed June 25th. Arguments and paperwork will be exchanged later in the process.
Town officials and attorneys have claimed that the judge in the case failed to give proper jury instructions. They alleged that Hot Creek did not follow through on the administrative process for their complaint.
The Town will appeal the jury decision in the trial and the judge's later denial of their request for a new trial. While the case is up on appeal, the Town will not have to pay any of the $30 million damage award.
Meanwhile, Town officials have appealed the denial of an insurance claim to cover the big damage award. That issue is still pending.