$7 Million Net Will Go Back Into the City’s Spending Fund.
City of Long Beach recently won a lawsuit against insurer AIG for reimbursement of portions of a $20 million settlement paid to Shirley McClure in a case alleging a councilmen-planning director conspiracy to keep her from operating six groups of homes for Alzheimer’s patients in Bixby Knolls and California Heights. AIG argued it was not responsible for reimbursement for fees or costs spent on the McClure case because City’s acts were intentional in nature, a position apparently rejected by the Ninth Circuit Court of Appeals.
City was awarded $10.2 million, although its cut will only be about $7 million after paying back outside counsel hired by the City.
For more details on this story, see Paul Eakins’ January 20, 2010 post, “Inside City Hall: Long Beach Wins Suit Against AIG,” available for reading online at the Contra Costa Times’ website.