They agree to pay $ 1.3 million to a contractor who accused them of favoring companies that contribute to councilor campaigns
The City of San Bernardino agreed to pay $ 1.3 million to Manny Acosta, owner of the Pepe’s Towing crane company to settle a lawsuit for discrimination and unequal treatment by not allowing him to compete as a contractor and favoring companies that contribute electoral money to campaigns. from local officials.
“I didn’t want to fight anymore because of the COVID-19 pandemic and because the city of San Bernardino just came out of bankruptcyManny said.
However, he mentioned that he at least recovered the legal costs of the lawsuit, and got the City to acknowledge that he has not been treated fairly.
“I was satisfied because both the administrator of the City and the mayor promised to give us a dignified and serious treatment when a bidding process reopens.”
For 20 years, Manny was trying to enter into contracts with the City of San Bernardino, but particularly in the last five years it got tougher when he realized that they had benefited six companies that contribute election money to the campaign of the mayor of San Bernardino.
As a result, Manny filed a lawsuit in Los Angeles Federal Court in 2019 against the City of San Bernardino for retaliation and conspiracy in preventing him from obtaining a towing contract. In the lawsuit, 15 people were involved, including the mayor, councilors and managers of San Bernardino due to their participation in the regulation and approval of the contracts.
“The settlement agreement came after a federal judge denied a City motion for a disqualification request, just before the lawsuit went to trial.”Said attorney Stephen G. Larson of the law firm Larson O’Brien LLP. who represented the crane businessman.
Pepe’s has towing contracts with several cities in San Bernardino, Riverside and Los Angeles counties, but has never been allowed to work in the City of San Bernardino.
Contracts for towing companies are determined by the San Bernardino City Council through a bidding process, but for the past 20 years they have been renewed with the same companies without opening them up to competition.
When the owner of Pepe’s attempted to work with the San Bernardino Police Chief and City Council members to have an open bidding process, the City blocked opportunities for any towing companies outside of the existing rotation by enacting a waiver that favored the crane companies they already work with.
In addition, the City put new requirements such as a larger lot to protect the towed vehicles, knowing that new applicants like Pepe’s would not be able to comply.
Even the companies they favor with contracts don’t have those pens, Manny said.
The City of San Bernardino tried to request a trial to dismiss Manny’s claim on the grounds that he did not provide sufficient evidence regarding his retaliation claim, but US District Court Judge Stephen V. Wilson He rejected that motion, finding on August 10, 2020, “inappropriate.”
The City, which until Judge Wilson’s order had rejected Pepe’s attempts to reasonably resolve the complaint, agreed to a $ 1.3 million settlement, the terms of which include a stipulated judgment in favor signed by Judge Wilson on September 25, 2020..
“This case is about Pepe ‘s fight against municipal corruption and unfair favoritism,” Larson said. “Manny and his company just want to be treated fairly and have the same opportunities as any other towing business in the cities they serve so that those communities get the best service for their tax dollars.”
He added that they hope that the Pepe’s case and others like it will help put an end to corruption, misuse and lack of responsibility among some city officials.
