New Lawsuit Could Halt Frivolous CEQA Litigation
A new lawsuit filed on behalf of The Icon Group claims unions use CEQA litigation as a tool to force union labor on construction projects.
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.”
The project has received tremendous support from the community, according to Feldman, who adds that the project would also redevelop a vacant property into a higher an better use. “The Icon project is overwhelmingly supported by the community, law enforcement, fire, businesses,” he adds. “It planned to take a dilapidated property and turn it into something that would beautify the community and turn it into housing, which is desperately needed.”
Developers have frequently complained of deceitful CEQA actions for the purpose of delaying development. “This is not the only developer that has had this issue with the unions,” says Feldman. “The unions file CEQA actions while on the backend try to negotiate with the developers to accept project labor agreements using only union labor. Our feeling is that the unions have no desire to protect the environment. This is an effort to get developers to use union labor, and to the detriment of non-union labor.”
Feldman adds that the judgment could potentially benefit all developers. “This is filed on behalf of Icon, but it would help the wider development community to get projects that are desperately needed to beautify these communities,” says Feldman.