On December 1, 2009, in a letter sent to the Fairboard and not made public until the press received the letter, the State Attorney General (AG) notified the Orange County Fairboard that they are being dropped as a client "until all issues relating to the proposed sale of the District Fairgrounds have been resolved." Download AttyGenLetterDec1 This action by the AG creates potential legal, financial, and governance problems for the Fair Board. It's time to stop the sale and get a new Fair Board.
The AG states that they are not allowed to represent individuals or the non-profit Fair Foundation, and then points out that since the Fair Foundation has a majority of Fair Board members on the Foundation Board, the AG cannot represent the Fair Board because there is no clear separation. Also, the Fair Board is advised to seek outside counsel and reminds them the AG will not monitor the legal bills.
What this means is the AG is telling the Fair Board they are on their own until the sale is completed or stopped. Even after the sale is stopped, the AG may not want to come back in as counsel if the Fair Foundation still exists with six of the eight Fair Board members as Foundation Board members.
Additionally, the AG will not help them manage their new counsel. Typically, in large organizations, certain needs may be contracted out to outside counsel (litigation, certain contract negotiations), which is then managed by the in-house counsel. In this case, the Fair Board is being put out on the proverbial ice-floe by the AG - you're not a client anymore, go find a new lawyer, and no, we're not going to help you.
The Fair Board also has pending litigation over the sale of the Fairgrounds and unfilled public records requests which have reached their statutory time limit and may now be taken to court to release the documents. Without counsel, the Fair Board can't act on these items in a timely manner. Already the clock has run out on requests for documents relating to the hiring of Dick Ackerman, Adam Probolsky and dealings with the Fair Foundation. Under the California Open Records Law, the courts may order the records released with the party denying the records, in this case the Fair Board, picking up the tab.
And, where is the money for the new attorney going to come from? Large law firms, which are the most likely home for a client like the Fair Board, commonly ask for retainers starting at $100,000. If the partners feel there is the potential for litigation or non-payment, the retainer goes up. On top of the retainer, the Board would then have to pay for legal services rendered. What is going to be cut in the budget to pay for the new attorney?
The only way to stop this nonsense is to stop the sale and get a new Fair Board. Appointing a new Board would allow for:
- Equitable treatment of the vendors, equestrian center and Marketplace
- Realignment of management to better serve the interests of the public
- Build up of operating reserves
- Create the transparency, accountability, and access to records that is legally required.
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