The ruling on Friday (12/12/14) by Judge Eddie Sturgeon came in a high- stakes case filed by Sweetwater Union High School District against construction companies Gilbane and The Seville Group. The district is seeking the return of millions of dollars paid to the companies, contending the contracts were tainted by findings of conflict of interests among school officials.

     State law says when public officials enter into a contract in which they have a financial interest, the deal is void - and any money paid out has to be returned. The district is seeking the return of $26 million.

     The conflicts came to light after U-T Watchdog began reporting on the relationships between contractors and officials at the Sweetwater Union High School District and Southwestern College.

     The stories spurred a sweeping investigation by District Attorney Bonnie Dumanis, which ended up with 18 contractors, school board members and officials eventually pleading guilty to a variety of charges.

     In defending the lawsuit seeking return of school bond funds, the companies claimed that the gifts weren't bribes. They argued the companies were exercising their free speech rights by "petitioning" government officials. That meant their conduct was shielded by the constitution.

     To support that argument, the companies argued that among the 18 guilty pleas, none were for bribery. Instead, most defendants pleaded to failing to properly disclose gifts and benefits they received. ... 
    ... The judge flatly rejected the construction company argument.
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The next court date is Dec. 18. Alpine's attorney said an injunction still is possible if the district fails to come up with a plan to set aside funds. ...
The bond measures, passed by voters in 2004 and 2008, were to upgrade existing facilities and build a new high school in Alpine. ...