Back to mediation for Mammoth and MLLA

Last Thursday in US Bankruptcy Court in Sacramento, the Town of Mammoth Lakes and Mammoth Lakes Land Acquisition were ordered to go to mediation. The Court appointed Bankruptcy Judge Elizabeth Perris to serve as judicial mediator in the case.

Mammoth had filed a petition for bankruptcy protection July 3 after months of budget cuts and attempts to negotiate with MLLA. Town officials stated that they could not pay the $43 million lawsuit judgment owed to MLLA. They also said that MLLA refused to participate in the mandated 60-day mediation with creditors. MLLA’s attorney Dan Brockett said there would be no point to further mediation considering the failure of months of talks and negotiations with Mammoth officials.

The Bankruptcy Court apparently disagreed. Judge Thomas Holman, who is assigned to Mammoth’s case, issued an order to appoint Judge Perris to mediate. He also ordered the first mediation session for August 6 and 7 in Los Angeles. Assistant Town Manager Marianna Marysheva-Martinez said that the location has not yet been determined. She said the mediation would likely take place at either the offices of Attorney Ken Klee or at the MLLA attorney’s facilities.

Martinez said that objections to Mammoth’s eligibility for bankruptcy are due August 24. Attorney Brockett had earlier made it clear that MLLA will object and does not believe the Town is eligible for bankruptcy. Brockett said, “They didn’t negotiate in good faith, and they are not insolvent.” He said MLLA made offers Mammoth never responded to. Mammoth’s lawyers say they invited MLLA six times to take part in mediation, and the firm declined.

Martinez said that Mammoth officials agree that the process set down by the Court should be followed. Martinez said, “The Town is emphasizing that there needs to be a timely resolution. It’s important to leave this behind before next ski season,” she said.

MLLA has asked the Court for more time and more information from Mammoth. Martinez said they want information relating to Mammoth’s eligibility for bankruptcy including issues related to insolvency and a good faith process. She said MLLA also wants to examine if Mammoth’s debt reduction plan is the best.

Attorneys Zack Clement and Bill Greendyke of Fulbright and Jaworski represented Mammoth at the Bankruptcy Court hearing as did Attorneys Ken Klee and Michael Tuchin of the firm Klee, Tuchin, Bogdanoff & Stern.

Mammoth will appear again before Judge Holman August 29 for a status conference.


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4 Responses to Back to mediation for Mammoth and MLLA

  1. Observer July 22, 2012 at 11:53 am #

    Since the mediator is herself a federal bankruptcy judge, she will probably advise the TOML that just because it doesn’t have $43M in spare change on hand doesn’t mean it is insolvent. Not exactly what the Town wants to hear.

  2. upthecreek July 18, 2012 at 10:13 pm #

    TOML ” Death by a thousand meetings.”
    The cost of the attorneys and the 5 town Mangers will drain whats left of the towns bank accounts..

    Good luck Mammoth


    • SierraFan July 19, 2012 at 2:58 pm #


      Always and optimist! So what you’re saying is is that you would be way more qualified to handle town business? If so, then put your money where your mouth is and run for office.. in fact maybe walk in to the meeting and let them know that you have all the answers. The we might really be “up the creek”!

      • upthecreek July 19, 2012 at 10:09 pm #

        The TOML has been UPTHECREEK for at least 7 years.. it is a lost cause and not worth the effort . give it back to the county…Shut errrr down BOYS.



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