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Court Nixes Lawsuit Over South Gate City Kickbacks

LOS ANGELES (CN) - A California appeals court has ruled that a section of the state government code does not apply to Michael Klistoff Jr.and All City Services,who were accused ofpaying a South Gate city official to steer a 10-year, $48 million city contract for garbage removal and recycling services to Klistoff & Sons.

The city filed suit for conspiracy under Government Code section 1090, a provision that the court said only public officials or employees can violate. Klistoff, who was vice president of Klistoff & Sons, never received payments, and his company was not a party to the contract.

The court granted his petition seeking dismissal for failure to state a claim. See ruling.

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