Tag Archive for California High-Speed Rail validation lawsuit

Three Sacramento County Superior Court Rulings on California High-Speed Rail – Bond Validation Lawsuit and Prop 1A Lawsuit – November 25, 2013

California High-Speed Rail Court Decisions

November 25, 2013 California High Speed Rail Authority Bond Validation Lawsuit Ruling (original source http://www.saccourt.ca.gov/general/media/docs/tos-v-ca-high-speed-rail-authority-ruling-112513.pdf)


  • It was NOT proven to be “necessary and desirable” to authorize bond sales on 3/18/13 for California High-Speed Rail.
  • I’m referenced on pages 7-8 & page 18 (footnote 30).

August 16, 2013 Tos Fukuda Kings County v California High-Speed Rail Prop 1A Part 1 Ruling (original source http://www.saccourt.ca.gov/general/media/docs/tos-v-ca-high-speed-rail-authority-ruling.pdf)

JOHN TOS, AARON FUKUDA, COUNTY OF KINGS, Plaintiffs and Petitioners, v. CALIFORNIA HIGH SPEED RAIL AUTHORITY, et al., Defendants and Respondents.

  • California High-Speed Rail doesn’t need to rescind its Tutor-Perini contract for first segment construction (Merced to Fresno).
  • The 2012 appropriation of funds to California High-Speed Rail from Senate Bill 1029 is not invalidated.

November 25, 2013 Tos Fukuda Kings County v California High-Speed Rail Prop 1A Part 2 Ruling (original source http://www.saccourt.ca.gov/general/media/docs/tos-v-ca-high-speed-rail-authority-ruling2-112513.pdf)

JOHN TOS, AARON FUKUDA, COUNTY OF KINGS, Plaintiffs and Petitioners, v. CALIFORNIA HIGH SPEED RAIL AUTHORITY, et al., Defendants and Respondents.

  • California High-Speed Rail Authority has to rescind its approval of its non-compliant November 3, 2011 funding plan.

News Media Coverage

Judge Blocks Sale of California High-Speed Rail Bonds – Associated Press (in Sacramento Bee) – November 25, 2013

California High-Speed Rail Funding Overturned by Judge – FOX 11 (Los Angeles) – November 25, 2013

Judge Blocks Use of State Bond Money for California Bullet TrainLos Angeles Times – November 25, 2013

California High-Speed Rail Plans Stopped in TracksSan Francisco Chronicle – November 26, 2013

California’s High-Speed Rail Imperiled by Court RulingsSan Jose Mercury-News – November 25, 2013

Sacramento Judge Sides with Kings County Plaintiffs, Puts California High-Speed Rail Plan on the RopesHanford Sentinel – November 25, 2013

California High-Speed Rail Bond Sale Rejected by Judge – www.bloomberg.com – November 25, 2013

Judge Grants Partial Victory to Foes of California Bullet Train – KQED – November 25, 2013

California Bond Sale for High-Speed Rail Project Blocked by Judge – Reuters – November 26, 2013

Locals Participated in High-Speed Rail Court Case – Bakersfield Californian – November 26, 2013

Judge Blocks Sale of California High-Speed Rail Bonds – Capitol Public Radio – November 25, 2013

California High Speed Rail Bond Sales Halted and Funding Plan Invalidatedwww.nextcity.org – November 26, 2013

Judge Strikes Down High Speed Rail Bond, Causing More DelaysSilicon Valley Business Journal – November 26, 2013

Court Instructs California High-Speed Rail to Redo Funding Plan; Refuses to Validate State Bonds – www.Examiner.com – November 26, 2013

Judge Deals Setback to California High-Speed Rail ProjectWall Street Journal – November 26, 2013

Applying a Brake to High-Speed PlansThe Economist – November 26, 2013

California Judge Cuts Off State Funding for High-Speed Train Venture – FOX News Channel – November 26, 2013

Judge’s Rulings Favor Opponents of Rail Project – www.agalert.com – November 26, 2013

LaMalfa: High-Speed Rail ‘Dead in the Water’Redding Record-Searchlight – November 26, 2013

California Bullet Train Might Be Breathing Its LastMother Jones – November 25, 2013

Will High-Speed Rail Keep Rolling Ahead? – columnist Dan Walters (video) – Sacramento Bee – November 26, 2013

Hurdle for High-Speed Rail: Where is the Money? – Associated Press (in Sacramento Bee) – November 26, 2013

Hurdle For California High-Speed Rail: Where Is The Money? – KPIX Channel 5 (San Francisco), video – November 26, 2013

Judge Issues Setback to California’s High-Speed Rail Plan – KQED Forum, radio interview – November 27, 2013

  • Dan Richard, chairman, California High-Speed Rail Authority
  • Juliet Williams, political reporter for the Associated Press
  • Quentin Kopp, former chairman of California State Senate transportation committee

Bullet Train Snag Could Affect Transbay Terminal – columnists Matier & Ross (in San Francisco Chronicle) – November 27, 2013

High-Speed Rail Ruling Threatens To Derail Future Of Caltrain – KPIX Channel 5 (San Francisco), video – November 27, 2013

California State Senator Mark DeSaulnier Talks About The Fate Of High-Speed Rail – KPIX Channel 5 (San Francisco), video – December 1, 2013


Bullet-Train Fiasco: Gov. Brown, Heed the JudgeUT San Diego – November 25, 2013

Time to End the California High-Speed Rail Fraud – Bay Area News Group (Contra Costa Times, Oakand Tribune, etc.) – November 26, 2013

Hit the Brakes on California’s High-Speed Rail FraudLos Angeles Daily News – November 26, 2013

Pump the Brakes on Bullet TrainRiverside Press-Enterprise – November 26, 2013

Judge Detours Plans for Bullet TrainOrange County Register – November 26, 2013

Bullet Train Must Deliver on Its Pledge to VotersVentura County Star – November 26, 2013

High-Speed Rail Proceeds in Fits and StartsSacramento Bee – November 27, 2013

Bumps in the Path of High-Speed RailSan Francisco Chronicle – December 1, 2013


California Judge Sends High-Speed Rail Plan Careening Backward Into the Station – Reason Foundation – November 25, 2013

Rube Goldberg Legal System Derails California Bullet Train – The American Interest – November 26, 2013

End Game on Bullet Train: No $, No Project – and No Prospects for $ – CalWatchdog – November 26, 2013

Court Rules Against Bullet Train Authority – Howard Jarvis Taxpayers Association (in www.foxandhoundsdaily.com) – November 26, 2013

Obama’s Bullet Train Dream Just Derailed in California – American Enterprise Institute – November 26, 2013

My Public Comments on Bond Finance for California High-Speed Rail Entered into Record for Pivotal Bond Validation Lawsuit

My March 15, 2013 written comments to the California High-Speed Passenger Train Finance Committee outlining several concerns about its plans for bond financing were the ONLY written comments submitted to the committee before its March 18, 2013 meeting, at which it authorized borrowing more than $8 billion for California High-Speed Rail through bond sales (a requirement under Proposition 1A).

In addition, I was one of four people to speak in person at the March 18, 2013 California High-Speed Passenger Train Finance Committee meeting at which committee members voted to authorize the bond sales.

My written and oral comments to the California High-Speed Passenger Train Finance Committee have been entered into the record for the validation lawsuit (High Speed Rail Authority et al. v. All Persons Interested et al. – Case No. 2013-00140689) filed on March 19, 2013 in Sacramento County Superior Court concerning the legal validity of the bond sales. My comments help to boost the case of the respondents (“All Persons Interested”) that the California High-Speed Passenger Train Finance Committee failed to fulfill its legal responsibilities under Proposition 1A before it authorized the bond sales.

My written comments are submitted to the court as Exhibit G (public comment letter to the HSPT Finance Board by Kevin Dayton, March 15 , 2013) in the August 19, 2013 declaration of Rita Wespi of Californians Advocating Responsible Rail Design (CARRD) based in Palo Alto. Her declaration states that “Based on a series of Public Records Act requests I submitted to the High-Speed Rail Authority and the High-Speed Passenger Train Finance Committee, it is my opinion that the Finance Committee voted to approve over eight billion dollars of state bonds with little more information than a resolution from the High Speed Rail Authority.”

The declaration goes on to state the following:

On March 25, 2013, I made a similar request of the HSPT Finance Committee for “copies of all reports, analyses and recommendations provided to the HSPT Finance Committee members.”

Mr. Mark Paxson, General Counsel for the Treasurer’s Office, replied that “other than the agendas, resolutions and minutes from the prior meeting that are due for approval, there are typically no other documents provided to Finance Committee members prior to their meetings.”

In his response, Mr. Paxson stated that, for the March 18 committee meeting, the HSPT Finance Committee received in total one public comment letter and a briefing memo from the Public Finance Division’s staff. The staff briefing memo simply reiterated the agenda.

The March 15, 2013 public comment letter requested the Finance Committee to add language to Resolutions IX and X which would a) prohibit 40-year terms of maturity, and b) prohibit the use of Capital Appreciation Bonds. The letter argued that without this language, the bond sales and resulting repayment schedule would deviate from what was described in the 2008 voter guide for Proposition 1A. To the best of my knowledge, this letter was not acknowledged or discussed by the Finance Committee.

The declaration is correct: the only indications that my public comment was received was a subsequent email dated March 20, 2013 from Timothy Aguirre in the State Treasurer’s office informing me that “The State Treasurer’s Office will be holding the High-Speed Passenger Train Finance Committee meeting on Friday, March 29, 2013 at 2:00 pm at STO Room 587. Please see the attached meeting agenda” and a March 25, 2013 email from a general mailbox for the State Treasurer’s Office stating “You have indicated you would like to be contacted on items relating to the High Speed Passenger Train Finance Committee. The resolutions to be taken up during the March 29th meeting have been posted to the State Treasurer’s website.  You can find the resolutions by following the web link provided below. http://www.treasurer.ca.gov/financial/meeting.asp.”

My comments in person at the California High-Speed Passenger Train Finance Committee meeting on March 18, 2013 were submitted as Exhibit A (transcript of the meeting) as part of an August 19, 2013 declaration of Kathy Hamilton of Menlo Park, who writes articles about California High-Speed Rail for the Examiner web site.

Kevin Dayton: Note: Tape was turned on a little late, missing his intro. Kevin is CEO of
Labor Issues Solutions.

“Will the bonds be sold separately or at the same time for state bonds for other purposes? What rate do you expect to sell them at? I heard the chairman say 6.25% but I’m going to guess that was probably made that number up out of his head. The bonds selling last week were between 3.5 and 3.8%, something like that. I’d like to hear more about what you think you will get out of this. How will the bonds be structured? Will we be selling capital appreciation bonds at all for this? If the lawsuit that is coming up in Kings County is lost by the High-Speed Rail Authority and you’ve sold bonds, what happens to the money? These are questions I think that regular Californian who voted for this want to know. [They want to know] a lot more about this. We need to know a lot more about this [because] it’s a lot of money for us especially when you consider the interest etc will be about $20 billion [interest on bond funds] total for the whole thing. Thank you.”

Carol Ferris breaks in: “I’d like to thank you for your comments. I would also like to say that the purpose of this is to hear public comment and certainly the committee members can then take your comment into consideration. It’s not a question and answer session at this time.”

As noted in Kathy Hamilton’s declaration about the California High-Speed Passenger Train Finance Committee, “There was no evidence presented, questions asked or witnesses called. There were no discussions that the approval of the High-Speed Rail resolution was necessary or desirable. There were no discussions at all…none of the appointed committee members were in attendance, and all were substitute representatives.”

In other words, it was a farce. My article California High-Speed Rail: One-Way Ticket to Debt in www.FlashReport.org on March 25, 2013 described my experience speaking at the March 18, 2013 meetings of the California High-Speed Rail Authority and the California High-Speed Passenger Train Finance Committee. Also related to this meeting are my March 15, 2013 post Message to California High-Speed Rail Authority and California High-Speed Passenger Train Finance Committee: No 40-Year Bonds, No Capital Appreciation Bonds, What If You Lose Lawsuit? and my March 30, 2013 post Reality of Crushing Public Debt from Bond Sales Eclipses the Fantasy Vision of California High-Speed Rail.

Additional Background on Bond Validation Lawsuits

Documents filed in California High-Speed Rail Bond Validation Lawsuit – on the web site of Transportation Solutions Defense and Education Fund (TRANSDEF)

Sacramento Judge Has a Full Plate of Rail LawsuitsFresno Bee – September 9, 2013

Legal Challenges Plague the California Rail Projectwww.Examiner.com, by Kathy Hamilton – September 8, 2013

Bullet Project Attempts Legal Maneuver to Limit Damage by Lawsuits – www.Examiner.com, by Kathy Hamilton – April 2, 2013

California’s High-Speed Rail Authority Sues Everybody, Invites You to Argue Case in CourtSan Jose Mercury-News – March 28, 2013