Inept County Government
May Need To Takeover Inept CSD

Posted: December 14, 2020
Newberry Springs Community Alliance
by Ted Stimpfel

    As previously blogged, 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 county.

    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 injured resident.

    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 authority ?

    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 the protection.

    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 mega-solar corporation.

    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.

    Any resident interested in registering to claim deserving compensation is welcomed to contact us through  Only those participating may receive compensation for their damages.

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