Legal Question in Civil Rights Law in California

Taxpayer Lawsuit

Can a taxpayer lawsuit be filed against a business that pays monthly rent to a municipality, and conducts a business in a public park. The company has exclusive rights to operate the business in the park and to improve the facilities and has continually for the past 19 years breached their contract according to the files obtained by FOI request. The City has failed to breach the contract, and has turned a blind eye to the ongoing failure to perform. The city was to recieve rents based upon improvements to the facilities and increased patronization in the amounts of over $3 million dollars over 25 years, they are in their 19th year and income to the city has been about 1.6 million. How does the plantiff protect against the superior financial resources of the city and not go bankrupt when a suit is filed against the city and the operator of the facility.


Asked on 7/28/06, 11:56 pm

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Taxpayer Lawsuit

IF you are saying there is provable fraud and improper withholding of money due the city, then there is a potential case. If it is simply sloppy 'mom and pop' management by the company and benign neglect by the city, that is different. If they have paid the contract's specified percentage of income, but just haven't invested in improvements because of lack of income and profit, there is no fraud. In addition, you have described a modest scale business at about $80k per year paid, so what is it you realistically expect to achieve and/or recover compared to the fees and costs incurred in a lawsuit?

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Answered on 8/01/06, 5:52 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Taxpayer Lawsuit

If you have information that a business or individual is filing false claims, or otherwise stealing money or property from a federal, state or local agency, you may have a very good lawsuit indeed, and you could be eligible to receive a bounty of a percentage of the lawsuit, plus your attorney fees. You would need to keep quiet about your information for the time being, and immediately consult a lawyer experienced in "false claims act" or "qui tam" lawsuits. Do not file the lawsuit yourself. If you do not have information that false claims are being filed, then you have a tougher row to hoe -- you may not have "standing to sue." I would be interested in hearing more.

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Answered on 7/31/06, 7:46 pm


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