The Superior Court conflict-of-interest case involving former San Lorenzo Water District Director Terry Vierra continues, with the next proceeding March 17.
That is when the water board’s attorney Marc Hynes will argue that Superior Court Judge John Gallagher should retry the civil case that resulted in December in a decision by Gallagher that Vierra violated state laws when he participated in a water district decisions that led to $12,006 in real estate commissions for his wife and his real estate agency. Gallagher ordered Vierra to pay $9,346.67, half to the state and half to Bruce Holloway, a Boulder Creek ratepayer who brought the suit.
The request for a new trial came at the behest of a 4-1 majority of the current water district board, none of whom was on the board in 2010, when the real estate transaction – purchase of property, later sold, to enable construction of water storage facilities – occurred. Vierra and his wife, Molly Bischoff, were owners of the real estate agency listing the property and his wife was the listing agent.
Director Bill Smallman cast the lone vote against continuing board support of Vierra’s legal case. Board president Gene Ratcliffe, Margaret Bruce, Chuck Baughman and Erik Hammer voted to seek a new trial and continue to appeal the case.
It remains unclear whether the board also intends to pay Vierra’s court judgment, or the plaintiff’s legal fees, which, like Vierra’s continue to grow. The water district has paid more $70,000 in legal fees; it has been estimated the Holloway’s legal bills are about the same.
The March 10 hearing is on the board’s request for a new trial, in which Gallagher will have to admit that some error was made at the first trial. The judge is expected to rule from the bench that day.
If the board is successful, a new trial date would be set. If unsuccessful, motions would have to be filed to appeal the case to an appellate court.
The district hired a special appellate attorney nearly two weeks before its majority voted to proceed with an appeal of the case, beginning with a request for a new trial.
Hynes is both the district’s lawyer and Vierra’s lawyer in this case.