Baglin Acted Legally, Lawyer Insists

The lawyer representing a Laguna Beach city councilman facing felony conflict-of-interest charges offered a complex argument for his client’s innocence Monday on the opening day of trial.

Prosecutors say Wayne Baglin made a $36,000 commission by negotiating a real estate deal with Laguna Beach on behalf of clients even though he was a city councilman at the time.

State law bars elected officials from having a financial interest in any contract made by them in their official capacity, or by any entity of which they are members.

Baglin, a former mayor, faces a maximum penalty of about 6 1/2 years in prison if convicted.

The case dates to January 2001, when the City Council, in search of land for a senior citizens center, voted to buy a pair of adjacent parcels on 3rd Street through eminent domain.

The property was owned by Edgar and Dorothy Hatfield, clients and friends of Baglin.

Though Baglin -- who remains on the council -- recused himself from the city’s vote on the land and disclosed his relationship with the sellers, he represented the couple during negotiations with the city.

In the end, the sale was completed for $1.8 million without need for eminent domain, a procedure through which a public agency can force an owner to sell property for its fair-market value.

But Michael Molfetta, Baglin’s attorney, argued in court Monday that the transaction was very nearly accomplished through eminent domain, and that the councilman was therefore entitled to represent the sellers in their negotiations with Laguna Beach because he recused himself from votes on the question.

In opening statements, Baglin’s attorney said the city threatened to take the Hatfields’ property through eminent domain -- and in that scenario, “Baglin was just a guy who was helping his clients.”

Molfetta has said the case is about political back-stabbing by several of his client’s political enemies.

In court, Edgar Hatfield testified that Baglin had represented him in previous real estate deals and he considered him “top notch” as a real estate businessman, someone he and his wife trusted.

Hatfield testified that he received an offer by the city to buy the two parcels to build low-cost housing and a senior citizens center there.

But Hatfield also said the city sent him a letter notifying him that it was beginning the process of eminent domain to take both parcels.

The offer to buy his property for $1.8 million was made by the city on Jan. 23, 2001.

The trial is expected to last three days.