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WEB EXCLUSIVE: City fights off Gwinnett


 

Published August 8, 2008

LOGANVILLE – In a classic case of David versus Goliath, the City of Loganville successfully fought off an effort by Gwinnett County to prevent it from considering an annexation and re-zoning request that could result in a Hampton Inn on the corner of Brand and Oak Grove roads.

In the first test case since the state enacted the new legislation, an arbitration panel of five disinterested parties from across the state assembled in Loganville council chambers Thursday to hear arguments from both sides.

In the end, the arbitration panel voted 5 — 0 in favor of Loganville getting the opportunity to consider an application by Danny Herrmann of Diversified Development to annex and re-zone 3.8 acres currently zoned residential. Indications were the application, now likely to go before the city, would be for an upscale hotel — such as a Hampton Inn — and several retail outparcels.

“Both sides did a great job but I believe you were given an indefensible position to work with,” arbitrator Bob Sosebee said to attorneys for Gwinnett County. “I believe the only reason this came up was as a test case.”

Although objections under the new legislation — which gives counties the ability to object to an annexation on the basis it puts a material increased burden on the county — have been raised before, this was the first time it has gone before an arbitration panel. Sosebee, a councilman with the City of Commerce, went on to suggest future cases be worked out between the county and cities before incurring the expense of the arbitration hearing. Under the statute, the county raising the objection gets to bear 75 percent of the costs incurred with the panel deciding who foots the bill for the balance. In this case, the panel recommended the remaining 25 percent be split 50-50 between the city and the county.

Attorney Robyn Webb, representing Loganville, said she believed the city should be able to hear the case and make a decision before having to go through the arbitration process. At this point the city’s planning commission and the city council have yet to hear Diversified’s application.

“But that’s not how it’s set up and that’s for the state legislature to address,” Webb said. “The greater financial burden at the moment is on cities. Counties have attorneys on staff but most cities, unless they’re the City of Atlanta, don’t.”

Gwinnett County has 10 days to appeal the decision of the arbitration panel in the Superior Court of Gwinnett County. Attorneys for the county said they couldn’t comment on whether that is something they are considering at this time.

If no objection is raised, Hermann is free to make an application for the annexation and re-zoning to the City of Loganville under the normal avenues available. At that time, residents in and around the development will have the right to attend the Loganville planning and zoning and city council public hearings to voice their opinions on the proposed development.

 

Wednesday, June 11, 2008
Study shows value of quick settlements
A study of court settlements of personal injury lawsuits against businesses estimated companies could save an average of $114,000 per claim, or $670,000 for severe injuries, by promptly settling cases instead of fighting them in court.

The study, which was published this month in the Columbia Business Law Review, also projected $32,000 in savings from lower legal expenses, or about $211,000 for cases involving severe injuries.

The study based the projections on how much it would cost businesses to make “early offers” to pay out-of-pocket medical expenses and wage losses of injured claimants. The quick settlements would reduce legal fees and “pain and suffering” damages.

Jeffrey O'Connel of the University of Virginia School of Law's and Patricia Born of California State University-Northridge wrote the study, which analyzed settlements of personal injury and defective product injury cases against companies between 1988 and 2004 in Texas and Florida.

The study proposes an early-offer system that would give businesses 180 days to offer claimants no-fault-like payments of medical expenses and wage losses not otherwise covered, plus an additional 10 percent for attorney fees. Although claimants would not be compensated for pain and suffering, the study predicted a payment wait time of 2 1/2 years less than going to court.

Under the model, claimants could only turn down offers if the defendants' actions involved gross misconduct, which the study found only involves about 4 percent of business liability cases.

“Thus a crucial element of the tort system's deterrence mechanism is retained: Injured parties could still win suitably large monetary awards under the early-offers model for both economic and noneconomic damages in clear cases of aggravated error,” O'Connell said.
 

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