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District Court Ruling Issued in CGB Lawsuit

By Matthew Leaf

12/13/2012

(KTNC) - A ruling was issued this week in Richardson County District Court in a lawsuit filed by David Leon Frederick against the City of Falls City and Falls City EDGE. Frederick, who is part owner of Salem Grain, had filed a lawsuit seeking documents relating to the Consolidated Grain and Barge project.
In his ruling, District Court Judge Daniel Bryan sided with Frederick, and ordered EDGE and Falls City disclose all non-exempt documents to Frederick.
EDGE had argued that the records in its possession were not subject to public disclosure under Nebraska’s Public Records Act.
Judge Bryan ruled found that the records held by EDGE are public records subject to disclosure. He reasoned that the city delegated its economic development goals to EDGE, and the records requested are public records relating to Falls City’s delegation of authority to EDGE. Judge Bryan said state law does not permit public bodies to conceal public records by delegating their duties to a private party.
The ruling exempts some records from public disclosure. Those include CGB financial statements and schedules; the CGB Business Plan; CGB’s drafts of the Memorandum of Understanding between the CGB and Falls City; and copies of OPPD and CGB employees’ business cards. The court found other documents exempt under attorney-client privilege.
Documents the court said must be disclosed include emails regarding CGB’s estimated employee salaries, job creation numbers, and capacity and capabilities; the final draft of the Memorandum of Understanding between CGB and Falls City; and emails regarding the proposed timeline for the CGB project and property valuations.
Frederick had asked the court to issue a “writ of mandamus.” Attorneys for EDGE argued in a November 26th hearing that such a writ should not be issued. Judge Bryan issued his ruling on Tuesday.

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