Mammoth Town Council will continue the fight with Hot Creek and examine other options

At their meeting Wednesday in closed session, the Mammoth Town Council decided to continue the fight with Hot Creek

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To deal with the more than $33 million of a court judgment, the Council will try to go to the State Supreme Court but will also explore negotiations and bankruptcy.

developers. They hired a law firm to take the issue to the California State Supreme Court. The Council also made it clear that at the same time they will explore negotiations, bankruptcy and other options.

In a press release issued Thursday afternoon Town Manager Rob Clark said that the Council opted to retain Horvitz & levy, the largest firm in the nation specializing exclusively in appellate litigation, to petition the California Supreme Court for review of the Hot Creek decision. The Town has until February 8 to file its petition. The Supreme Court then has 90 days after the filing to decide whether or not to hear the case.

Clark said since this petition is unknown, the Town Council will also explore other options, including challenging the denial of insurance coverage for the $30 million judgment, developing options for settlement negotiations, and seeking legal advice on municipal bankruptcy options.

The press release says that special municipal bankruptcy laws now exist to assure continuity of service to the public in the face of severe financial challenges if the Town takes this route.

 
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