MORGAN HILL
– A judge ruled Thursday that city staff and councilmembers are
immune from a claim filed by Gilroy Ford Dealership Owner Scott
Lynch to halt a new and competing Ford dealership in Morgan Hill.
But the effort against Ford may still proceed.
MORGAN HILL – A judge ruled Thursday that city staff and councilmembers are immune from a claim filed by Gilroy Ford Dealership Owner Scott Lynch to halt a new and competing Ford dealership in Morgan Hill. But the effort against Ford may still proceed.
“The city defendants were immune and could not be sued,” City Attorney Helene Leichter said after Superior Court Judge Socrates Peter Manoukian’s ruling.
Lynch, through his attorney Bruce Tichinin, filed court action in July asking for an injunction to stop the project, saying it would be unfair competition in an area too small to sustain two similar businesses.
Bob Lynch Ford in Gilroy is less than 12 miles from the 8.65-acre Condit Road site chosen by the Ford Motor Co. and Tim Paulus, who would own and operate the dealership.
Lynch had alleged that the city engaged in “unlawful business practices” by issuing Paulus permits and land-use entitlements, violating planning and zoning law and the California Environmental Quality Act and that Paulus had engaged in unlawful business acts by obtaining the approvals.
Paulus’ attorney Sean Absher said Monday that he was confident the two sides of the case are linked.
“We believe the claims against Mr. Paulus would logically follow the city out of the case,” said Absher, “since those claims derive from the city acting improperly.”
He said he was optimistic that he would get the case dismissed.
The judge separated Paulus from the city because, as a non-governmental entity, he can be liable for charges of unfair competition, defined as having three prongs or practices that are unlawful, unfair or fraudulent. He said Paulus need only be engaged in one of the three to violate the law.
Paulus, the judge wrote, did not argue that Lynch failed to show that Paulus violated the unlawful prong of the unfair competition law. He only said Lynch failed to show that Paulus engaged in unfair business practices.
“The alleged violation of the unfair competition law may be based upon acts that are unlawful, unfair ‘or’ fraudulent,” the ruling stated.
Tichinin, who was given 20 days to refile the case against Paulus, leaving out the city defendants, said he would file by today, seeking to prevent construction of the dealership.
“I am confident,” Tichinin said, “that we have proof of violations of law alleged in the public record and Paulus, to date, has not claimed otherwise. The important objective is to stop Paulus’ operation, not to get the city to set aside its determinations.”
