International Longshoremen's & Warehousemen's Union v. Los Angeles Export Terminal, Inc.
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International Longshoremen's & Warehousemen's Union v. Los Angeles Export Terminal, Inc. was a case before the California Second District Court of Appeal, Division 3 in 1999 concerning open meetings.
Important precedents
This case established that private corporations who perform the function of a public legislative body and who were either directly created by that public body through legislation or indirectly created by that public body through an appointed arm fall under the California Open Meeting Act.[1]
Background
- In 1981 the Board of Harbor Commissioners, a division of Los Angeles County government, Resolution No. 4531 which established a coal terminal on a nearby island. As a result, 34 coal companies from Japan and the United States signed a contract creating the Los Angeles Export Terminal, Inc. (LAXT), a for profit company designed to manage the aforementioned coal terminal with the Board of Harbor Commissioners controlling 15% of the corporation.
- On February 23, 1993 the city council of Los Angeles approved of the contract.
- On March 31, 1993 LAXT officially came into existence.
- LAXT contracted with Pacific Carbon Services Corporation (PCS) to meet the labor demand opf the coal terminal.
- On March 4, 1996 International Longshoremen's & Warehousemen's Union (Union) filed a suit alleging that LAXT was considered a public legislative body and therefor subject to the Brown Act. They also sought to overturn the contract with PCS because it was made during a illegally closed meeting.
- The trial court ruled in favor of the Union and ordered the contract void and that all future meetings of LAXT be open to the public.
- LAXT appealed claiming that it should not be considered a public body under California law.[2]
Ruling of the court
The trial court ruled in favor of the Union, declaring LAXT to be a public body created by the city of Los Angeles and thus falling under the jurisdiction of the Brown Act. They further negated the contract with PCS and ordered LAXT to pay attorney fees of $60660.[2]
The Court of Appeals concurred with the trial courts decision and ruled in favor of the Union.
The court ruled, counter to LAXT's assertions, that despite it being created by the Board of Harbor Commissioners because it was still created in a legal sense by the City Council of Los Angeles because the board was acting as an appointed arm of the City Council. Further, the council passed important resolutions supporting LAXT, without which its creation could not have occurred. Further, the court argued that LAXT was created with the intention of building and maintaining marine facilities, a job specifically designated to the Board of Harbor Commissioners by the city council. Based on these assertions, the court ruled in favor of the Union and awarded attorney fees for both the trial court and appeals court cases.[2]
Associated cases
See also
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