Activist group dumps city suit

Concerned Citizens of Newport Beach dropped its $250-million lawsuit against Newport Beach Friday morning, according to court documents.

The move nearly puts an end to all of the organization’s litigation after it has dropped lawsuits against almost all of the group rehab homes in Newport Beach, as well as a lawsuit that named both the city and the City Council.

“We gave it a lot of thought and polled our supporters,” Concerned Citizens of Newport Beach leader Denys Oberman said. “The city rang up a lot of expenses for us and the city. We thought it would be best to redirect our resources.”

Oberman added that they decided to dismiss the lawsuit rather than try to settle with the city because the original settlement the city offered included parts the organization felt would limit its 1st Amendment rights.

“We never thought there was any merit in their damage action against the city,” said Jim Markman, special attorney for Newport Beach.

Moreover, pressure from motions filed by the city’s attorney, Dan Spradlin, would have cost Concerned Citizens a great deal of money.

“You can always spend the money and stand up and fight, or drop the lawsuit,” Markman said. “They dropped the lawsuit.”

The only lawsuit still pending by the group is one against the city’s largest group rehab home operator, Sober Living by the Sea.

“I am very pleased that they decided to do that,” Councilman Michael Henn said. ”What I am hopeful for is that it will clear the path for them to work constructively to work toward the implementation of our ordinance and the remaining work that needs to be done.

“The city never likes it when it is sued by its own citizens, so it is nice when these suits can go away. So we are happy for that.”

Henn has hopes the city and Concerned Citizens can repair a relationship that has been damaged over the last few months.

Confidential aspects of meetings and a potential settlement were leaked to the media recently, and both sides exchanged barbs over money issues involved in that potential settlement.

“Hopefully, they will constructively participate in the use-permit process going forward,” Henn said. “That will be very helpful, as far as the city is concerned, and I think very beneficial for all of the citizens of Newport Beach.”

That relationship faced more strain earlier this week. Oberman announced it had settled or dropped all lawsuits except those against Sober Living by the Sea and Newport Beach — to focus money and time on producing political candidates to run against City Council incumbents up for reelection in November.

“We’ll see how the city works with the citizens,” Oberman said. “At this point in time the ball is in their court to prove they are genuine in solving the problem. No more excuses.”

DANIEL TEDFORD may be reached at (714) 966-4632 or at daniel.tedford@latimes.com.