Judge Freeborn Tosses Humboldt DA's PALCO Fraud Case

In a scathing rebuke to Humboldt County District Attorney Paul Gallegos, Assistant District Attorney Tim Stoen, and Mr. Stoen's consultant, Ken Miller of the Humboldt Watershed Council, Judge Richard Freeborn issued a strongly worded 23 page Order sustaining PALCO's motion for a Demurrer (rejection of complaint) by the Court. The ruling is "without leave to amend", meaning that the rejection is final. The ruling found numerous errors of fact and law in the complaint.

The ruling determined that the erroneous document from a consultant that was at the core of the DA's suit did not constitute part of an effort to deceive government agencies, was not submitted under adjudicatory California Environmental Quality Act (CEQA) processes, did not affect the outcome of the CEQA process surrounding the Headwaters Deal, and did not constitute an unfair or fraudulent business practice. The ruling allows PALCO recovery of legal costs incurred in defense from the suit.

Judge Freeborn took the case after Gallegos and Stoen accused Judge Christopher Wilson of "bias" for curtailing their original complaint. Gallegos and Stoen registered no objection to Judge Freeborn taking the case.

The lawsuit arose from lobbying of the DA's office by Miller after Gallegos took office as District Attorney in 2003. The filing of a lawsuit by the DA based on lobbying by a political supporter well known for malice towards the defendant has been widely criticized as politically motivated and improper.

The ruling is the latest in a series of setbacks for Gallegos and Stoen, including the scandal over their bungling funding for DA office positions including victim-witness advocates, and improper and possibly biased management of the Grand Jury investigation of Fortuna City Councilwoman Debi August by Stoen. Their is talk within County government of a possible Grand Jury investigation into the management of the DA's office under Gallegos. His supporters are expected to remain loyal regardless.

http://extras.times-standard.com/temp/palco_suit.pdf