New Lawsuit Could Halt Frivolous CEQA Litigation

A new lawsuit aims to put an end to frivolous CEQA litigation from unions. Steptoe & Johnson LLP has filed a lawsuit on behalf of developer the Icon Group against the carpenters and laborers unions. The suit alleges that the unions file CEQA actions as a ploy to force union labor on development projects. The misuse of CEQA has become common complaint among developers in Los Angeles, who say they experience tremendous hurdles and increased costs as the result of frivolous lawsuits.

The Icon Group has plans to redevelop the former Montgomery Ward building at 14665 Roscoe Boulevard in Panorama City, which has been vacant for 20 years; however, the development has been delayed by CEQA actions filed by the unions. “The case was brought forward because the two unions named in the case have conspired to dominate, monopolize and control the sale of labor services to developers who are trying to do large projects in Los Angeles County,” Alan Feldman, a partner at Steptoe & Johnson, tells GlobeSt.com. “Our client, Icon, is a developer with a project in Panorama City, which was approved at every step of the administrative process with the city of Los Angeles. The two unions have challenged it and opposed it at every stage of the process in an effort to use exclusively union labor on the project.”

The suit alleges that the unions have engaged “in anti-competitive conduct and racketeering activities, including fraud and extortion,” and that the unions have shown “pattern and practice of filing repeated sham litigation under the guise of the California Environmental Quality Act.” The developer and its legal team say the CEQA actions came during the final approval of the project. “They are using CEQA to delay these projects. In our case, Icon’s project was approved,” says Feldman. “At the final approval, unions filed a CEQA action in Superior Court to appeal the city’s approval. Their tactic is to force developers to have to deal with deals and costs in an effort to control the supply of labor to large projects.”