Man Loses Libel Suit Against Riding Club

Businessman Eddie Milligan has lost his libel suit against a Lakeview Terrace riding group that had objected to his bid to win a 30-year concession to operate an equestrian center for the city of Los Angeles.

Superior Court Judge Richard C. Hubbell on Thursday dismissed the lawsuit on a motion filed by the Valley Horse Owners Assn., which had once accused Milligan of trying to ruin the city-owned Hansen Dam Equestrian Center. Attorneys for Milligan and the Valley horse association confirmed Hubbell’s ruling. Milligan could not be reached for comment.

The ruling comes within days of the announcement of a new accord that seeks to end years of quarreling between Milligan and the U.S. Army Corps of Engineers, the agency that owns the Hansen Dam property where Milligan’s equine center is located.

In his decision, Hubbell ruled that a letter from the horse association to city Recreation and Parks Department officials criticizing Milligan’s management style and contending he favored wealthy horse owners was not libelous but a privileged statement. Privileged statements are ones made to government agencies that are immune to libel claims to encourage free expression and participation in civic affairs.

Milligan, a former jockey, claimed the letter had hurt his efforts to secure a 30-year lease with the city to run the Hansen Dam center and cost him tens of thousands of dollars.

Milligan has operated the equestrian facility since 1989 on a month-to-month lease while waiting for final city approval of a 30-year pact.

In the intervening years, Milligan has squabbled with the city and the Corps of Engineers about stables and buildings he has built on the site. Milligan said he invested $2.5 million in the facility.

The city threatened to evict Milligan in 1992 after he refused to remove two trailer homes on the site. He and his wife resided in one, his daughter in the other, and the Corps of Engineers complained it did not permit human habitation in a flood zone.

Last month, Milligan agreed to seek approval before building any more structures at Hansen Dam and to secure his trailer homes. On the other hand, the Army Corps agreed to drop its objections to what Milligan has built so far.