LA Utility's Surplus Transfers Not Extortion, 9th Circ. Affirms

Law360 (August 26, 2020, 7:49 PM EDT) -- The Ninth Circuit has affirmed a lower court's decision tossing Hobbs Act and anti-racketeering act claims against Los Angeles city leaders, holding that the city's policy of transferring surplus power and water utility charges to the general fund is not an act of extortion.

In a published opinion on Tuesday authored by U.S. Circuit Judge Daniel P. Collins, the three-judge panel upheld the federal court's decision declining to retain jurisdiction over the lawsuit's state law claims and dismissing all federal claims.

For claims under the Hobbs Act, which criminalizes the taking of property by extortion, the panel said other circuits have...

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