City Wins Toss Of Transit Co.'s Contract Suit

By Nick Brown

Law360, New York (November 02, 2009, 3:40 PM ET) -- A federal court has dismissed a transportation company's $1.75 million breach of contract suit against a California city, ruling that the suit's only federal cause of action — an alleged due process violation — does not extend to economic property rights.

Judge Morrison C. England Jr. of the U.S. District Court for the Eastern District of California issued an order Wednesday granting a motion by South Lake Tahoe, Calif., to toss the case with prejudice on the grounds that plaintiff Area Transit Management Inc. “failed to...
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