• January 19, 2011
  • Edwin E. Akhavan
  • 0

Mammoth Mountain is a beautiful ski resort area where over a million visit to hit the slopes. However, on December 30, 2010 the California Court of Appeals issued a gloomy decision upholding a $30 million judgment against a Mammoth Mountain Ski Resort that arose from a breach of contract lawsuit.

The decision stems from a 1997 agreement between a ski resort developer, Mammoth Lakes Land Acquisition, and the city. The agreement gave the developer the option to purchase land and develop a $400 million hotel in exchange for improving the local Yosemite airport. The city had a change of heart and backed out of the contract.  The town’s residents place the blame for the large judgment on the city’s Town Council for their decision to not honor the contract terms.

The judgment accounts for twice the city’s annual budget. Officials are currently considering strategic options in dealing with the judgment and are taking a look at filing for a municipal bankruptcy. Regardless, the city is certain they will feel the effects of the large judgment.

The city has until February 8 to file a petition for review to the California Supreme Court. The court then has 90 days to decide if they will hear the appeal.

Reported by the LA Times

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