Orange County Bankruptcy Suit Moved to Ventura County Court
A $400-million civil lawsuit stemming from the huge Orange County bankruptcy has been transferred to Ventura County after a judge ruled that a neutral venue was needed to try the case.
But Ventura County officials said Thursday that they are uncertain whether the case belongs in their jurisdiction, and may try to bounce it back to Orange County if the proper procedures have not been followed.
“We have received the order of the Orange County judge,” said Ventura County Superior Court Judge William Peck, who supervises the civil caseload.
The lawsuit, filed by the city of Orange and two public agencies that lost millions of dollars in a risky investment pool, blames former outside county auditor KPMG Peat Marwick for failing to warn them of the impending financial crisis.
The Orange County Water District, the Orange County Transportation Authority and the city of Orange filed separate lawsuits against KPMG in September and November 1996.
The three cases were later consolidated into a single legal action.
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