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In our monthly newsletter, we provide important information about the work of the Oakland City Attorney's Office - plus updates on legal issues and matters that impact Oakland residents and businesses.
This month: Oakland files lawsuit to clean up appalling West Grand Hotel; illegal dumping enforcement action update; update on major legal cases; and the City Attorney in the Community.
As always, I look forward to your comments, thoughts and questions about how we are conducting the City's business.
Very truly yours,
Barbara J. Parker
Oakland City Attorney
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City Attorney sues owners of West Grand Hotel for appalling conditions & rampant drug sales
This month, our Office sued the owners of the West Grand Hotel, a single room occupancy rental property notorious for drug activity and unsafe, inhumane living conditions.
For years, the West Grand Hotel at 641 West Grand Avenue has been a public nuisance to the neighborhood and has endangered the health and well-being of the dozens of Oakland residents who live there. The property has long been a center of drug activity, including sales, storage and distribution of cocaine and heroin. Since April 2013, Oakland police have arrested at least 23 people for drug sales and other drug crimes connected to the property, and officers have recovered firearms and large amounts of drugs packaged for sale inside the building.
City inspectors also have repeatedly documented hazardous building and fire code violations, including 1) the absence of fire extinguishers and alarms, 2) exposed and unsafe wiring, 3) broken windows, 4) infestations of mold and cockroaches, 5) overflowing dumpsters, 6) inoperative toilets and showers, 7) use of cooking appliances in the hallways and 8) extremely unsanitary conditions unfit for human habitation.
The owners of the West Grand Hotel are responsible for the appalling conditions in the building and have allowed their property to become a public nuisance in the neighborhood.
A company called Oakland JMO, Limited Liability Corporation ("LLC"), which is not licensed to do business in California, owns the West Grand Hotel. The LLC was incorporated in Georgia in late May 2012, just two weeks before the company bought the West Grand property. Tenants send their rent checks to the office of a Beverly Hills attorney who is one of the owners of the property.
The Neighborhood Law Corps unit in the City Attorney's Office is prosecuting this lawsuit (Alameda County Superior Court Case No. RG14735473). We have asked the court to declare the West Grand Hotel a public nuisance and shut it down for a one-year period, the maximum period permitted by law. The lawsuit seeks damages from the owners for years of unpaid Rent Program service fees and substantial civil penalties and damages. In addition, the lawsuit asks the court to appoint a receiver to take control of the property, relocate the tenants and make all necessary repairs; the owners would be responsible for all costs. The lawsuit also asks the court to order the owners to live at the West Grand Hotel until the nuisance is abated.
Every tenant in our City has a right to safe and humane living conditions. We have many responsible landlords in Oakland. Unfortunately, the owners of the West Grand Hotel treat their tenants as nothing more than ATM machines while their buildings literally fall apart.
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Illegal Dumping Enforcement Update
Illegal dumping enforcement continues to be a top priority for my Office. The City Attorney's Neighborhood Law Corps is using photos and other evidence from the public to build cases against illegal dumpers, and the City is issuing major fines. Results so far: - Total number of citations: 80
- Total number of warning letters issued: 81
- Total amount collected in fines: $21,975
- Total number of cases settled: 23
To report incidents of illegal dumping, go to: Public Works on line service request page, or SeeClickFix: http://www.seeclickfix.com/oakland. Photos of the license plate numbers of vehicles used for illegal dumping are ideal. If a photo is not available, write down the license plate number, and please avoid confrontation when documenting illegal dumping incidents. |
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City Attorney in the Community
National Night Out
On August 5, members of our Office attended National Night Out parties throughout the City, from Temescal to Fruitvale to East Oakland. National Night Out is a nationwide event that encourages neighbors to have block parties, ice cream socials or other outdoor events to build relationships and community spirit with the overall goal of increasing public safety. This event has been extremely successful in Oakland. Thousands of residents participate every year.
It is heartwarming to see diverse groups of residents gather in our streets to share good food and get to know each other. This event reminds me of one of the many reasons that I love Oakland. We care deeply for our many unique neighborhoods and for our community, and neighbors continue to work together to make Oakland shine even brighter.
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Updates on Legal Cases & Matters
Jury returns verdict in favor of City of Oakland in officer-involved shooting lawsuit
This month, a federal court jury in San Francisco returned a verdict in favor of the City of Oakland in Spring Mathews, et al. v. City of Oakland, et al., a lawsuit filed by family members of a man who was fatally wounded after he pointed a gun at Oakland Police officers following a high speed pursuit in 2011.
On January 26, 2011, Oakland Police officers responded to a gunfight involving several individuals at an apartment building on Lockwood Street near 78th Avenue. Officers saw two individuals, later identified as Martin Flenaugh, II and Jereme Brown, fleeing from the scene in a red sedan. A long pursuit ensued that ended with a serious accident when the suspects ran a red light and hit another car while crossing San Leandro Street near 85th Avenue. Mr. Flenaugh, age 19, got out of the car on the passenger side with a gun in each hand and pointed both guns at an officer. Fearing for his life, the lives of other officers and the lives of innocent bystanders, the officer shot Mr. Flenaugh. Police recovered both handguns at the scene. Bullet casings from one of the guns were found at the Lockwood crime scene.
In 2012, family members of Mr. Flenaugh filed a federal civil rights and wrongful death lawsuit against the City (Northern District of California Case No. C12-03235) alleging that he was unarmed when he was shot. At trial, Mr. Brown testified that Mr. Flenaugh did not have a gun and was not involved in the gunfight on Lockwood Street.
However, during cross examination, the City Attorney's defense team played recordings of Mr. Brown's phone calls from jail to impeach his testimony. In those calls, Mr. Brown said Mr. Flenaugh was armed on the day he was killed, and fired shots during the gunfight. He also called Mr. Flenaugh "trigger happy." Oakland Police officers and an independent witness all testified that Mr. Flenaugh was armed and aimed guns at an officer when he exited the car.
The jury deliberated for less than an hour before returning its verdict.
I want to congratulate Deputy City Attorney David Pereda and Chief Assistant City Attorney Otis McGee for handling of the case.
I am very pleased with the jury's verdict, which was a sound decision based on the evidence. However, it is tragic that the officers were placed in a position where they had to use lethal force, and that this young man's family suffered such a horrible loss.
Fraud & antitrust lawsuits against major financial institutions
City of Oakland v. AIG Financial Products Corp. The City recently secured another settlement in our federal antitrust lawsuit against some of the nation's largest and most powerful financial firms (City of Oakland v. AIG Financial Products Corp., et al., United States District Court Case No. C 08-2116 MMC). The lawsuit filed by Oakland and other cities charges some of the world's largest financial institutions with conspiring to gouge taxpayers by price fixing and bid rigging in the municipal bond market. Defendants include AIG, Bank of America, Bear Stearns, JPMorgan Chase, Wachovia Bank and others. Last year, the City of Oakland opted out of a nationwide class action settlement with Bank of America. By refusing to accept the class settlement, we were able to negotiate a separate settlement with Bank of America for $325,000 (the City Council authorized the settlement from Bank of America on July 29). This is significantly more than the few hundred dollars we would have received from the class settlement! We previously secured our own settlements with two other defendants, GE Funding Capital Market Services and Wachovia, for $281,750 and $200,000 respectively. Again, the class settlements with these defendants would have been much less - in the case of Wachovia, the amount would have been less than one dollar. City of Oakland v. AMBAC Financial Group Inc. The City also secured a small settlement from one defendant in a separate lawsuit alleging fraud by municipal bond insurance companies (City of Oakland v. AMBAC Financial Group Inc., et al., San Francisco County Superior Court Case No. CGC 08-479241). That defendant, FSA/Assured, agreed to pay Oakland $1,000. We recommended and the Council authorized this settlement because the City suffered no damages as a result of FSA's actions and the City has no claims against FSA. The City continues to prosecute the AIG and AMBAC lawsuits against other defendants. To date, the settlement amounts are not large considering these entities' earnings. However, these lawsuits send a message to the defendants and other financial institutions that Oakland will not tolerate predatory schemes, and we will pursue all legal avenues to assure these institutions are held accountable and that the City is made whole. |
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