SACRAMENTO, Calif. (CN) — A decade-long legal battle over a sand-and-gravel mine ended Friday after Sacramento County settled with the mine's operators for $58.5 million.
The settlement staves off a scheduled Tuesday trial in federal court over damages, and ends litigation that claimed a congressman, his lobbyist brother and a state senator schemed to drive Joseph and Yvette Hardesty's gravel mine out of business. The operators had said a larger mining operation wanted them gone because their smaller business could under sell them.
Friday's settlement falls on the heels of $20 million the county agreed to pay the Schneider family, the mine’s owners, in a related suit.
The suit, filed in 2010, initially accused a number of government officials and entities of contacting state and federal agencies to get warrantless searches and meritless violations levied against the Hardesty mine.
The case reached trial in 2017, where a jury awarded the Hardestys and Schneiders over $100 million. An appeals court later determined the amount excessive and remanded the case back to the lower court, setting the stage for the now-vacated Tuesday trial date.
“I’m happy for the Hardestys that they’re finally able to put this matter behind them. My personal opinion is that I believe the amount of compensation being paid by the county is inadequate," said G. David Robertson, an attorney for the family. “But after 13 years of litigation, all things have to come to an end."
The Schneider Historic Mine in Sloughhouse, Sacramento County, is over 3,500 acres and had been in operation since the 1930s. A 1994 letter from the county confirmed it had a grandfathered vested right to mine with exemptions from local surface mining regulations and use permits under the Surface Mining and Reclamation Act of 1976.
The Hardestys operated Hardesty Sand and Gravel beginning in the 1980s on the property under an agreement with the Schneider family, though they are no longer in business.
The Hardestys claimed in 2007 that employees of a larger mining operation started contacting state and federal agencies and asked them to investigate the Hardestys’ mine, sending them photos and information about it.
In 2010, the county sent violation notices that claimed the mine had expanded beyond its vested right. County supervisors that year denied an appeal, finding mining operations couldn’t continue on the property.
A 2017 trial led to a $107.5 million jury award. The Hardestys were awarded $75 million and the Schneiders $30 million. There was about $2.5 million in punitive damages against individuals named in the suit.
The Ninth Circuit reversed judgment in 2020 for the named individuals, saying they had immunity. It also remanded the issue of damages back to the lower court, as they were excessive. However, it affirmed the judgment against Sacramento County.
Robertson said the county petitioned the U.S. Supreme Court on the liability issue, though the high court opted against hearing the case.
“The county ultimately — but belatedly — took responsibility for improperly revoking the vested right and reinstating the vested right,” Robertson said.
That brought the issue of damages back to the lower court. Robertson said a settlement for the Schneiders was penned in March, though it wasn’t finalized until about two weeks ago.
County supervisors authorized the settlement on Oct. 4 with the Hardestys, a county spokesperson said. The court issued its notice of settlement on Friday, vacating all remaining hearings.
The county declined any further comment.
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.
Additional Reads
-
Inaccessible border app May 8, 2024 -
