This is a public corruption case arising from a violation of state conflict of interest laws governing the award of public contracts. After a multi-week trial, a unanimous jury concluded that appellants procured a fifteen year, no-bid, $90 million public waste hauling contract from respondent in violation of California Government Code section 1090. After the respondent city terminated the contract, appellant sued, and respondent cross-complained against the corporation and its owner. As a result of the verdict the contract was deemed void from inception and the City was awarded restitution of all amounts paid under the void contract--a total of $22.4 million. In a separate bench trial, the court also found that the corporation and its owner were alter egos, and held the individual and corporate cross-defendants jointly and severally liable. Finally, the court granted the City nonsuit on the corporation's complaint, finding that the contract was void because it was not executed in conformity with the requirements of municipal law.
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