A motion to dismiss a lawsuit seeking to unwind the Imperial Irrigation District’s purchase of some 45,000 acres of land was granted this week, effectively ending the nearly decade-old Western Farms lawsuit.
Imperial County Judge Christopher Plourd on Tuesday granted the IID’s motion to dismiss the case on the basis that the plaintiffs’ attorney had not shown reasonable diligence in prosecuting their cases, said Mark Hattam, IID’s lead attorney on the case.
“We argued that they violated the California code of civil procedure,” Hattam said, referring to a rule that says all cases must go to trial within five years.
At issue in the lawsuit is the IID’s purchase of Western Farms’ land that the Texas millionaire Bass brothers bought in order to sell the water rights. It turned out that they could not sell the water rights and sold the land. It changed hands twice before the IID purchased it in January 2004 for some $88 million. The district used a portion of the property to institute fallowing as part of the Quantification Settlement Agreement, a move opposed by some landowners. Northend farmer Mike Morgan contended that the district was not authorized to purchase the land, and sued to undo the purchase.
The IID has sold most of the Western Farms land, also known as the “trust lands,” and only 18,000 acres remain.
More recently, Morgan-Holtz parties’ attorney Thomas Virsik made an offer to settle the matter in February, a move the IID board may have considered in closed session Friday.
Because the matter was discussed in closed session, General Manager Kevin Kelley could not confirm what was discussed or if Virsik’s offer was considered.
“The IID board considered this case on Friday and took no action,” Kelley said.
However, a letter from IID board President Matt Dessert to Virsik acknowledging receipt of the settlement offer, dated Feb. 26, was obtained by the Imperial Valley Press. The letter states that the earliest opportunity for the board to discuss the matter would be during the March 1 closed session.
“Please be assured that your offer is appreciated and will be fully considered,” Dessert wrote in response.
It is not clear the Morgan-Holtz parties will appeal the judge’s decision.
Virsik declined to comment. Morgan could not be reached by press time.
“I was very pleased to finally bring these cases to conclusion,” Hattam said. “We felt all along that they were frivolous actions attacking the Western Farms purchase.”
Hattam works for the law firm of Allen Matkins, which has come under scrutiny by the district of late. Allen Matkins partner David Osias was replaced Friday as the attorney of record for the consolidated QSA lawsuits, of which Morgan and Walter Holtz of Morgan-Holtz were also parties.
Staff Writer Antoine Abou-Diwan can be reached at 760-337-3454 or aabou-diwan@ivpressonline.com
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