Industry : Industry Case Judge Allows Suit to Stand

U.S. District Judge Mariana R. Pfaelzer has denied defense motions to dismiss a $33-million civil suit filed by the City of Industry against five men convicted in a kickback and bid-rigging scheme in the construction of the Industry Hills Exhibit-Conference Center.

Pfaelzer, however, did grant motions for dismissal of two counts of fraud and one of negligent misrepresentation against Roger Keith Haines and his company, KRW Corp., and Jack R. Carpenter and his firm, Valley Planing Mill. Pfaelzer also dismissed a charge of establishing an illegal trust against Haines and C. Ronald Rabin. However, other counts remain against each of the defendant individuals and firms. Pfaelzer’s ruling was written May 22, and distributed to attorneys last week.

The city with two of its redevelopment agencies--the Civic-Recreational Industrial Authority and the Industry Urban Development Agency--filed the suit last October against city founder James Marty Stafford and several others involved in the kickback and bid-rigging scheme. Stafford is now serving an eight-year sentence in federal prison. The suit also names Warner W. Hodgdon and George Jacques, both of whom did business with the city but have not been charged with any crime.