Boulder City’s 5-year SLAPP battle cost it $800,000

Boulder City’s yearslong SLAPP battle has ended with payouts for lawyers and for five residents the Nevada Supreme Court said were wrongfully sued by City Hall.

Clark County District Court ordered the city to pay a combined $237,500 to the residents and their attorneys, according to a settlement dated April 22.

But after five years of legal wrangling, the total cost to the city was more than $800,000.

Litigation started in 2010 after City Hall sued the residents, challenging the legality of three initiatives they had gotten on a ballot. The proposals aimed to cap city debt, establish term limits for volunteer committees and prevent the city from owning more than one golf course. Voters later approved debt and term limits.

The District Court initially ruled in favor of the city.

But the Supreme Court overturned the decision, ruling the city had filed SLAPPs: strategic lawsuits against public participation. Boulder City could have challenged the ballot initiatives by naming the secretary of state or another government entity as a defendant, the high court said.

Boulder City Attorney Dave Olsen said the city’s intention was to see if the initiatives were legal by filing for declaratory relief.

In September, District Judge Steven Kosach ordered the city to pay the residents $190,000 in attorney fees. The city sought to have the judgment reduced to $30,000, but that was denied.

Instead, both parties reached a settlement of $175,000 for the attorney fees. A check in that amount was written to Linda Strickland. She and her husband, Tracy Strickland, represented the residents throughout the lawsuit.

The residents filed three new lawsuits in June seeking damages from the city, Linda Strickland said. In October, the Stricklands requested $500,000 in compensatory damages, or $100,000 apiece for each plaintiff. By the time of the settlement, they got less than half that amount.

Olsen said then the city aggressively defended itself.

“There comes a time in virtually every lawsuit when people have to be pragmatic and say, ‘You know … instead of forging on and continuing the battle, it’s better for both sides to see if we can resolve it through negotiative settlement,’ ” he said.

Both parties began discussions in late January, but Tracy Strickland said it took about six weeks to come to an agreement.

The total settlement of $237,500 resulted in about 40 percent of what the Stricklands originally asked for when they filed for compensatory damages.

The breakdown, according to District Court records, comes out to $33,000 each for two residents, $23,000 for a third, and $18,000 each for the final two. A second check was written to Linda Strickland in the amount of $112,500.

The sixth resident involved in the lawsuit died shortly before the Supreme Court ruled in the residents’ favor and did not receive any money.

In the end, Linda Strickland, who served on the Boulder City Council and ran unsuccessfully for mayor in 2011, did not want to discuss details of the settlements, though the figures are a matter of public record.

“A good settlement is one where everyone walks away from the table a little unhappy,” she said.

Boulder City also paid the now-shuttered Las Vegas law firm Lionel Sawyer & Collins $188,283 for representing City Hall, Olsen said. Attorney Steve Morris was paid $208,486 for his representation.

Contact reporter Steven Slivka at sslivka@bouldercityreview.com or at 702-586-9401. Find him on Twitter: @StevenSlivka