Citizens prepare for court battle

Litigation between Concerned Citizens of Newport Beach and the city of Newport Beach looks increasingly imminent after negotiations broke down last month when the two couldn’t agree on a potential settlement deal.

A proposal was made to Concerned Citizens on June 14 that asked the group to support the city’s settlement with Sober Living by the Sea, to end public opposition against the city and drop the group’s lawsuit, according to Denys Oberman of Concerned Citizens of Newport Beach.

The city hoped to triangulate a deal with Sober Living by the Sea and Concerned Citizens, creating a two-for-one deal with a settlement that would include both parties, Newport Beach City Manager Homer Bludau said.

But Concerned Citizens asked for more money in the settlement and rejected the city’s proposal, officials from both organizations confirmed.

The city was prepared to offer $100,000 in a proposal to Concerned Citizens of Newport Beach, but Concerned Citizens rejected that amount, Oberman said.

Instead, the group asked for amounts that would cover costs the group has incurred over its time involved in fighting against rehab home facilities, as well as costs that would be incurred in future litigation — a price tag more than $500,000 for relief, Oberman said.

Concerned Citizens sued the city for $250 million, arguing that rehab homes have damaged the community and that the city has not done an adequate job in addressing the issue.

“It was an insult,” Oberman said of the proposed settlement. “We spent hundreds of thousands of dollars, and the city offers us $100,000 for no relief and to shut up. The whole principle of it was disgusting.”

Oberman said, along with the monetary aspects of any deal, the group also did not support the settlement with Sober Living or the stipulations given to them in the city’s proposal.

But Bludau said it came down to money.

When the settlement was proposed, Concerned Citizens said it would take a monetary agreement to make it happen and what Concerned Citizens asked for, the city wasn’t willing to pay, Bludau said.

“A $100,000 figure was discussed as a possible offer, but it was immediately rejected by Concerned Citizens for not being enough money,” Bludau said.

Since those talks and the release of the Sober Living settlement, Concerned Citizens and the city has seen negotiations fall apart. Conversations are now just between lawyers and both sides are gearing up for the pending legal battle.

“We are moving forward with preparing for that lawsuit and for our day in court,” Bludau said.

All of this information was protected by a confidentiality agreement, but Oberman said that agreement ended when the city released other elements of those meetings, and the group’s lawyers advised them the information was now public domain.

Despite that opinion, Oberman denied knowing who first leaked the meeting’s information to the media.

Oberman said the group is still open to negotiations and the possibility of a settlement, but said it is up to the city to come to them.

“We will do what needs to be done, whether it be legal or political action to make certain our residential community doesn’t get rezoned as an institutional area,” she said.

DANIEL TEDFORD may be reached at (714) 966-4632 or at daniel.tedford@latimes.com.