Judge Dismisses Golding’s Lawsuit : Politics: Mayoral candidate accused opponent Peter Navarro of violating campaign finance rules.

A Superior Court judge Thursday dismissed mayoral candidate Susan Golding’s lawsuit accusing her opponent, Peter Navarro, of violating city campaign finance regulations.

Judge James R. Milliken said he found no impropriety when Navarro’s campaign took out a $125,000 loan from the candidate’s mother earlier this week.

Milliken said Navarro has sufficiently documented the debt and has publicly stated the terms with which he will repay his mother, Evelyn M. Littlejohn of Palm Beach, Fla.

Navarro is required to pay back the money at a 10% interest rate, which conforms with current market rates, said Hal Rosner, Navarro’s attorney.

Rosner described Golding’s suit as a “hoax” and a publicity-generating ploy during a campaign marked by mudslinging.

“I would say it was a cheap trick, if it were not for involving the city clerk’s office and the court system,” Rosner said. “We are really looking at a house of cards and a bad use of the court’s time.”

Milliken, in issuing his verbal decision, said he personally supported Golding’s complaint with the campaign-funding process, in that the city statute regulating campaign funds does little to prevent private interests from helping a candidate with unlimited loans. Still, the complaint did not have legal standing, he said.

“I don’t agree with the statute from a public policy point of view,” Milliken said. “But we are bound by the word of law.”

Milliken described the law that allows private loans to election campaigns as a “loophole in the statute.”

Golding’s attorney, Robert P. Ottilie, said the decision was disappointing although “not wholly unexpected.” He responded angrily to the supposition that the lawsuit was filed to generate negative publicity for Navarro’s campaign.

“It was done to preserve the integrity of this election,” Ottilie said outside of court Thursday evening.