Federal Judge Denies Los Angeles Community College District Board of Trustees' Motion to Dismiss Case Filed by Local Construction Company on Behalf of California Taxpayers

Pinner Construction thanks court for allowing it to prove material factual disputes about LACCD board violating its fiduciary duty owed to taxpayers

LOS ANGELES, July 25, 2023 /PRNewswire/ -- Pinner Construction ("Pinner"), a century-old Southern California firm based in Anaheim, applauds a recent federal court ruling rejecting an attempt by the Los Angeles Community College District ("LAACD") Board of Trustees to throw out a case concerning alleged misuse of taxpayer dollars on a major local community college construction project. The project involving the Los Angeles Valley College Academic and Cultural Center has been delayed by 54 months.

In its initial complaint, Pinner, the general contractor, alleges construction managers intentionally delayed directives, resulting in more pay for their daily work while Pinner was penalized for the long-term postponement of the project. What's more, even after an independent arbitrator determined the construction managers violated its implied contractual covenant of good faith and fair dealing and likewise ordered the LACCD to pay Pinner $3.2 million (money that ultimately comes from taxpayers), the LACCD still chose to renew its contract with them.

Also of note, this ruling comes less than a year after the LACCD General Counsel opposed allowing Pinner attorneys Lanny Davis and Newton Kellam to move up their testimony about 20 minutes on the October 12, 2022, agenda at the request of the student trustee on the Board, resulting in the student trustee not hearing their testimony.

Pinner still wants to settle this case with the LACCD, for the benefit of students and taxpayers, and hopes the LACCD will be willing to do so. Pinner also hopes that the LACCD, consistent with the federal judge's opinion, will opt for transparency and allow one or more of the elected trustees on the Board to respond to questions about their knowledge of the case and decision to continue the contracts of those consultants found by the arbitrator to have acted in violation of their good faith covenants.

Pinner legal advisor Lanny Davis said, "We're grateful that the federal court has given Pinner a chance to discover more facts and earn its right to have a trial on behalf of taxpayers."

"We appreciate the opportunity to present our case on behalf of California taxpayers," Pinner General Counsel Newt Kellam adds. "We trust the LACCD Board of Trustees will be transparent and make themselves available for questioning."

Media Contact: Lanny Davis
[email protected]
(202) 744-2792

SOURCE Pinner Construction, Inc.