Inept County Government|
May Need To Takeover Inept CSD
Posted: December 14, 2020
Newberry Springs Community Alliance
by Ted Stimpfel
multiple residents have made a claim to the Newberry CSD for recovery of damages arising
from the CSD's removal of the Friends of Newberry Springs from the solar litigation against
The current and future damages arising from property value losses and
long-term medical is reasonably expected to be in the hundreds of millions of dollars.
So, what is the Newberry CSD's insurance coverage?
I don't know. A long time ago the coverage was about $300,000
for each director. If there hasn't been any change, with five directors, that's
only a pitiful $1.5-million.
Newberry Springs has thousands of parcels and well over two thousand
residents. No matter the limits of the policy, the insurance won't be enough.
It probably isn't even enough to cover the long-term medical damages for one respiratory
As I published a couple of years ago, silica particulates may
be the future tobacco litigation wave for attorneys.
The CSD directors have a moral standard of care as the holders
of the public's trust and authority to care for the community's CSD assets.
The directors' blundering has breached their fiduciary duty of care and has left
the CSD and themselves exposed.
And does the CSD's insurance policy have a weasel clause, such as
not covering any directors' action that is outside-the-scope of the CSD's chartered
The CSD can not act as a private entity in civil litigation nor
unilaterally remove a private entity from a civil action. The CSD's action
in removing the Friends appears to be far outside the scope of their authority !
If the directors voided their policy in the matter, yes, the
claimants would have less of a recovery opportunity.
If a court's trier-of-fact concurs that the CSD directors did
act outside-the-scope of their authority and did injure the claimants, then who is
left to pay the damages? Only the CSD through its assets and the CSD directors.
What are the assets of the Newberry CSD ? The
liquidation value of the CSD's land, buildings, treasury, fire equipment...
And what from the conspiring directors ? All of their attachable assets.
The Newberry CSD is a case study in ineptitude.
No board should operate without a supplemental comprehensive umbrella
Directors and Officers liability policy (aka D&O insurance) covering all contingencies.
However, the negligent Newberry CSD directors may have chosen to operate without
Newberry Springs is a difficult place to invest in and receive an
appreciation on residential property value. So, it is a 'knife-in-the-back'
when elected people rip-off the residents' home investment value in favor of a foreign
It is an eminent domain infringement to allow Clearway Energy
to step-in and negatively impact Newberry without Clearway meeting the full legal
permitting requirements and without compensation.
As Newberry's patriots, some residents will not standby and blindly
accept the CSD reducing the value of their homes and subjecting their families to deadly
carcinogenic silica particulates, a day of reckoning is necessary.
As previously blogged, once the Friends of Newberry Springs became
a part of the litigation, and the community voiced a desire to be heard before the
court, the CSD had no authority to remove the Friends.
Despite Director Jack Unger's very serious conflict-of-interest
and his deceitful pants-on-fire  fraudulent statements, he is not
the community's Friends as he claims, and he is not the Friends who are clearly
identified in the original Superior Court filing.
What Director Unger is foolishly contending is a concocted scam
that he and the CSD appear to have played in their filed papers to defraud the
Superior Court to remove the Friends from the litigation.
Monthly CSD board meeting.
The CSD directors are scheduled to have their monthly Zoom meeting
on Tuesday, December 15, 2020, at 6 P.M. The Board has not placed the residents'
claim on the agenda. Normally, a governmental body will flippantly state that
a claim is without merit and will simply deny it.
The CSD is not required to address the claim as a denial and subsequent
written notice can immediately get the attorneys involved.
The CSD's insurance company may represent the CSD in the litigation
but could demand indemnification of any legal expenses from the directors if the judgment
goes against the CSD and if the policy has a weasel clause. The CSD's insurance
policy might not cover board stupidity.
Also, if a court rules that the directors acted outside-the-scope
of their authority, the directors may need to reimburse the CSD treasury for all of
the legal costs expended on them starting at the time of the claim's filing.
Public funds are not for funding activities that are not a part of the CSD's
authorized mission. Legal fees may be at the Board members' expense.
I doubt that the board members will be able to charge any of their
outside-the-scope legal defense costs to the CSD without criminally embezzling public
funds. (But then, my opinions in this blog are only as a legal layman.)
The arrogance and contempt by the Newberry CSD boards have been
insulting to the residents for years. Even to the point of the recent CSD
director Larry Clark flipping-off the audience during board meetings.
The CSD board members' actions against the community, with their
mistaken belief of having impunity, needs to be addressed. They are not
immune ! Their damaging actions have consequences that do matter.
They can be held responsible.
Yet, despite the Board's madness, the voters in Newberry Springs
continue to re-elect their inept friends and neighbors to CSD seats.
If the CSD should lose its assets, requiring the county to take over,
the community will only have themselves to blame.
Should you favor more news blogs,
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deserving compensation is welcomed to contact us through
Only those participating may receive compensation for their damages.
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