Hollister
– The City of Hollister has filed a suit against the Hollister
Independence Rally Committee and its president, David Ventura, for
the more than $250,000 that city officials say HIRC still owes.
Hollister – The City of Hollister has filed a suit against the Hollister Independence Rally Committee and its president, David Ventura, for the more than $250,000 that city officials say HIRC still owes.
“There’s really not an anticipation that we’ll get anything,” Councilman Doug Emerson said. “But suppose something happens in the future, if they reorganize, it’s like filing our claim on the money we’re owed.”
HIRC, a nonprofit corporation, organized the city’s signature motorcycle rally for nine years before filing for bankruptcy in January. City Manager Clint Quilter has said that at the time, the group still owed $350,000 to nine creditors, including more than $250,000 owed to the city for law enforcement. According to City Attorney Stephanie Atigh, the city is asking for any assets that HIRC still maintains in compensation for the money owed.
When asked about the suit’s court date, Atigh said, “We’re hoping to settle this case, so that remains to be seen.”
Atigh added that the city and HIRC leaders are currently discussing the case.
“Everyone wants to see this resolved, and we’re working towards that,” she said.
Ventura declined to comment beyond confirming that he had been served papers and is currently in talks with the city.
Attorneys Vincent P. Hurley and Douglas F. Young are representing Hollister in this suit, which was filed at the Monterey Superior Court on Sept. 11. The suit lists three “causes of action”: HIRC’s alleged breach of contract, an alleged lack of accounting information and an alleged absence of proper corporate practices and funding. In the suit, the city argues that the third cause of action makes HIRC’s existence as a corporate entity “a sham and a fraud,” and asks that Ventura be held directly liable for HIRC’s debt.
Atigh said the suit’s third cause of action is a formality generally included in similar cases to ensure that if a defending corporation is not a valid corporate entity, the owners can still be held liable. If HIRC is found to be a valid corporate entity, Ventura and other committee members will not be liable, Atigh said.
The city canceled the rally this year, but some bikers still showed up and held an unofficial motorcycle invasion. Mayor Robert Scattini has organized a committee of local business leaders, city officials and motorcycle officials to coordinate rallies next year and beyond. Emerson said that in order to ensure the city isn’t forced to pay the bills for future rallies, the City Council and other officials must work to get a “better, tighter contract” with organizers.
“We want to be sure that when we sign a contract, there’s financial backing somewhere,” Emerson said.
Anthony Ha covers local government for the Free Lance. Reach him at 831-637-5566, ext. 330 or [email protected].
