It probably isn’t as evident to our current or future legislators as it is to our readers that what is going on in the management ranks of the AOC amounts to more of the same from the same bozos and bimbos that brought you CCMS, $409.00 clock batteries, $1,900.10 per square foot courthouses and sham lawsuits they intentionally lose to cover for their misdeeds. Complicating matters are some of the legislative aides that sit in the legislature in key judiciary committee positions who themselves cheer the centralization model with all courts reporting to the AOC. Complicating matters further is the November elections and essentially a new slate of legislators coming in to office soon.
One of the things you may have noticed about budget reductions is that the “leadership” wished to produce the appearance that they only get a measly percentage of the overall judicial branch budget and that their reductions are somewhat proportional. A few posts ago, we touched on the future as seen by the AOC on the immediate and critical needs account. Looking at the numbers, the AOC predicts that it will be able to sock away over a hundred and sixty million into a savings account.
INCA Revenues 2009/10 | 2010/11 | 2011/12 | 2012/13 | 2013/14 | 2014/15
Beginning Balance 93,600 | 250,656 | 369,617 | 53,753 | 22,177 | 166,533
Adjusted Balance 101,076 | 258,445 | 369,617 | 53,753 |22,177 | 166,533
Mad money summary:
Reserve by Lease Payments 12,162 | 47,780
Reserve for Construction 100,000 | 100,000
Reserve for Future Revenue Deficits 54,794 | 35,753
As you can plainly see, the AOC plans to stash away nearly 170 million dollars for future projects and future revenue deficits as if the voters themselves or the legislature will fully fund the judicial branch. The problem with documents like this written this way is that this pie in the sky will never materialize but the judicial council and the AOC have penned their plans, damn the trial courts. All legislators see is that the judicial branch must have the money to let the AOC sock away nearly 170 million for rainy days and construction cost overruns for their own projects, yet has not planned on keeping the trial courts open in the face of the real world budget. One that will probably get worse after next months election when prop 30 fails to gain enough traction to pass.
The people on the Judicial Council don’t represent the people and don’t do a very good job at budgeting anything. When they tell you that their courthouses will cost less and then they sock away 100 million, they know something you don’t and it probably comes in the form of anticipated cost overruns on projects where the budget was reduced. Already, many of these projects have had huge cost overruns with the CM At Risk not being at risk or held accountable. The AOC simply throws more money at these projects so that people don’t catch wind that they’re way over budget. Yet like everything else in the AOC, no one is held accountable and all you ever hear about is the latest gold shovel groundbreaking or ribbon cutting ceremony.
Prepare for more of the same next year. And the year after that. Until someone takes the AOC out of the real estate & construction business. Until someone defines the judicial council and AOC budget as a line item and not a percentage of the take. Until someone has the courage to reign in this reckless agency. All of that requires legislative intervention.
Related articles
- Let’s talk fact check again…. (judicialcouncilwatcher.wordpress.com)
- Bureaucrats continue to stonewall judges with new tactics (judicialcouncilwatcher.wordpress.com)
- Meanwhile back at the AOC, money grows on trees (judicialcouncilwatcher.wordpress.com)
- The leadership crisis has now been exacerbated (judicialcouncilwatcher.wordpress.com)
- The 1.8 billion dollar courthouse (judicialcouncilwatcher.wordpress.com)
- Dan Walters: Rebels make gains, but California’s judicial war still rages (sacbee.com)
Judicial Council Watcher 
unionman575
October 8, 2012
Judicial branch issues require legislative intervention .
Yes they do and NOW!
courtflea
October 8, 2012
Don’t let them fool you, this is what they are revealing as savings. I assure you they have lots more hidden away in special funds.
Oh yes, J Head has started his new job as Dirketor. Anyone know how is first few days are going?
disgusted
October 8, 2012
Justice via the AOC is officially beyond blind, deaf and dumb.
Lando
October 9, 2012
The legislature needs to convene a joint oversight hearing about the Judicial Council and AOC. The topics they should focus on are : 1. Wasting millions on CCMS and courthouse construction. 2. The failure of the Judicial Council and AOC to reduce the size of their operations at a time when the trial courts are being decimated. So many examples come to mind including hiring a replacement for Mr Childs, continuing to hire OGC lawyers, and failure to reduce AOC management. Someone should ask why we need such top heavy management including a Director, CEO and COO? 3. Wasting millions on salary benefits. Here the legislature should look at the gift of public funds given to numerous managers including promotions to interim higher paid assignments right before retirement along with not mandating a number of managers to pay into their retirement at all. 4. The failure and refusal of the Judicial Council to implement numerous SEC recommendations including moving to Sacramento 5. How all of the above has radically reduced court services to the public at the trial court level. 6. The continued punishment and retaliation against supporters of reform, including the above described antics of Justice Hull . Thats just a partial list . i am sure the many outstanding people who contribute to this blog can add much more.
unionman575
October 9, 2012
The legislature needs to convene a joint oversight hearing about the Judicial Council and AOC.
Agreed!
Nathaniel Woodhull
October 9, 2012
I truly believe that the only way to democratize the Judicial Council will be via a Constitutional Amendment fostered by way of the initiative process. While I generally believe that the initiative process is incredibly abused in California, this may be one time when it presents a tremendous benefit.
Members of the Legislature will be very, very leery about messing around with the Judiclal Branch, especially in light of the fact that it is the Judicial Branch which passes judgment on their legislation. The same holds true for the Governor.
I suggest that the Alliance Board and anyone else interested start working on drafting an initiative that would: 1) Mandate democratization of the Judicial Council; and 2) Clearly outline the process for selection of members on the Council. It is the latter point that causes concern. Time and thought should be given to the selection/election process. Some members should still be appointed by the Governor, Speaker, President Pro Tem and Bar, but the vast majority should be elected from sitting judges throughout the State. There needs to be assurance that a fair representation of judges is assembled for Council membership.
unionman575
October 9, 2012
AOC accounting made easy…Can you find the trial court cash?
Wendy Darling
October 9, 2012
Published today, Tuesday, October 9, from The Recorder, the on-line publication of CalLaw. Thought for the day: “Sullivan’s opponent in the case, Eric George of Browne George Ross, is well-known to the court as well. His father Ronald George was chief justice for 14 years and instrumental in selecting some of the current justices. Indeed, Eric George himself has actively consulted on judicial selection generally.”
At the Podium: Kathleen Sullivan’s Pyrotechnics on Full Display Before High Court
By Scott Graham
DAVIS — Kathleen Sullivan is a juggler. She can flip thoughts, ideas, and judicial questions through the air while arguing cogently at breakneck speed.
At a recent Ninth Circuit argument the Quinn Emanuel Urquhart & Sullivan partner unpacked all of this in 15 seconds: “Let me go through the textual reasons, the structural reasons and the policy reasons, boom, boom, boom. It’s like a treasure map,” she said. “If we start with the textual reasons and, Judge McKeown, if I could just do the textual argument in four quick steps and then I want to answer Judge Bea’s question about whether this is an as-applied or a facial challenge.”
Then, by the time you’re finished thinking, “Ooh, treasure map,” she’s already wrapped all the different threads of the argument into a coherent bow.
Lately, Sullivan’s been juggling cases along with ideas. Six weeks ago she traveled to Alaska to argue to the federal appeals court that Shell Oil should be allowed to explore for oil in the Arctic Ocean. Two weeks later she was before the same court in San Francisco arguing a high-stakes patent case for Motorola that could be worth billions in licensing revenue. And, of course, there was that little dustup between Apple and Samsung over the summer, which required her appellate expertise in the run up to trial.
Sullivan’s record on those cases is mixed so far. At the prodding of the U.S. Court of Appeals for the Federal Circuit, U.S. District Judge Lucy Koh of San Jose enjoined her client, Samsung, from selling the Galaxy 10.1 tablet. (Koh just dissolved that injunction in the wake of the jury verdict.). In the Motorola case, the Ninth Circuit turned down Sullivan’s bid to let the company enforce an injunction against Microsoft. The oil case remains under submission.
But it looks like a slam-dunk for Sullivan in another high-stakes case argued last week to the California Supreme Court at a special sitting in Davis. Sullivan used her mad argument skills to wow students and faculty of UC-Davis School of Law (and maybe even some Supreme Court justices), while appearing to get her client, the University of Southern California, off the hook for potentially $1.18 billion in damages, all the while likely making important new law on the admissibility of expert testimony.
“We don’t suggest for a moment that juries are not free to decide whether expert opinion testimony is probative,” Sullivan told the court. But when the methodology behind that expert testimony is unreliable, trial judges can exercise their gate keeping discretion by excluding it under Evidence Code 801, even if it knocks out an entire category of damages, she argued.
In Sargon Enterprises v. University of Southern California, that category is lost profits. Sargon is a small dental supply company with a handful of employees and what it believes was a revolutionary new design for dental implants. It contracted with USC’s medical school to conduct a clinical study, but according to Sargon the university botched the study and failed to properly report its results.
An expert witness testified that Sargon, which had never had profits above $100,000 in a given year, could have made between $220 million and $1.18 billion on the implants if USC had performed competently. A jury ruled that USC did breach the contract, awarding $433,000, but a trial judge excluded the lost profits evidence. California’s Second District remanded for retrial, and Superior Court Judge Terry Green held an eight-day evidentiary hearing on expert testimony proferred by accountant James Skorheim, who said Sargon’s innovation would have generated profits comparable to some of the largest dental supply companies in the world. Green excluded it again as unreliable.
Before the Supreme Court last Wednesday, Sullivan spoke with an urgency bordering on anxious that called to mind another proficient appellate lawyer, criminal specialist Dennis Riordan. “The judge gave Sargon every benefit of the doubt in trying to put forth this novel, unprecedented market-drivers theory,” she told the justices.
But Sullivan balanced that pointed oratory with a warm demeanor, smiling frequently and gesturing often with both palms up, as if welcoming the justices to their own court.
When Justice Carol Corrigan noted that Green devoted eight days to the summary judgment hearing, Sullivan responded, “Yes, Justice Corrigan, an eight day evidentiary hearing,” punching “eight day” so as to more gently correct Corrigan about the type of procedure at issue.
Justice Joyce Kennard, meanwhile, seemed incredulous at the damages figure. “Was it a figure between $220 million up to $1.18 billion, with a ‘b'”? she asked.
“Yes, remarkably enough, Justice Kennard, it was,” Sullivan responded.
But, Chief Justice Tani Cantil-Sakauye interjected, wasn’t the dental implant “revolutionary”?
“That’s what the inventor said it was,” Sullivan briefly acknowledged before steering back to more favorable turf. “But to go back to Justice Kennard’s correct recitation of the numbers, and let’s focus on them because they are truly remarkable.”
Returning later to the “revolutionary” claim, Sullivan argued that innovation is far from the only key to profitability. “To get to be the leading company in the world, wouldn’t it have something to do with your capitalization, your research and development, your other products, your advertising, your marketing, the efficiency of your management?
Of the seven justices, Goodwin Liu sounded the most skeptical. “What is the evidence supposed to show?” he asked, suggesting that a startup’s profits will always be somewhat speculative. “As I read the arguments, your opponent is saying, ‘Well … you breached the contract. So to now hear you complain that it’s difficult to show damages because of your wrongful conduct” isn’t fair.
Sullivan took the question head on. “Justice Liu, we could not disagree with that more emphatically,” she said. “Far from preventing Sargon from proving lost profits, all that the trial judge did here was say, ‘Please prove lost profits by a reliable method.'”
Liu and Justice Ming Chin addressed Sullivan as “Dean Sullivan” — a reference to her decade at the head of Stanford Law School. Others were not as deferential: Justice Kathryn Mickle Werdegar greeted her as “Ms. Sullivan” and Justice Marvin Baxter used the more traditional “counsel.”
Sullivan’s opponent in the case, Eric George of Browne George Ross, is well-known to the court as well. His father Ronald George was chief justice for 14 years and instrumental in selecting some of the current justices. Indeed, Eric George himself has actively consulted on judicial selection generally.
“Your honors, what I just heard was a superb argument,” George said, “in large part to be directed to a jury.”
In other words, he argued, if his expert’s methodology was unreliable, USC’s counsel or own experts could have tried to make that point to jurors.
Justice Ming Chin immediately threw cold water on George’s argument. What’s the standard of review on appeal of the trial judge’s decision, he asked.
“The appropriate standard is indeed abuse of discretion,” George acknowledged, “but what does that mean?”
What it usually means, if you’re appellant, is that you lose. But George argued that “something very different than a normal abuse of discretion” should apply, because the trial judge was acting as the ultimate finder of fact on the issue of lost profits. “Here we have a situation where a trial judge took out of play an entire category of damages,” George argued. “There is no discretion to be abused in doing that.”
But even Liu didn’t sound persuaded, and without his vote, George will almost surely have to concede this one to Sullivan. The expert’s numbers “are presented on a chart, they look like they have some basis to them,” Liu said. “And yet, I think, on careful inspection it’s not obvious at all that there’s any basis to these numbers.”
http://www.law.com/jsp/ca/PubArticleCA.jsp?id=1202574169775&At_the_Podium_Kathleen_Sullivans_Pyrotechnics_on_Full_Display_Before_High_Court&slreturn=20120909193051