Three Captains Lawsuit Nonsense

June 8, 2015 Daly City Community Garden

John Dooley and Larry Fortado are suing the San Mateo County Harbor District after Fortado's fish buying business was ordered to relocate a controversial hoist. John Dooley is paying Fortado's legal fees because Dooley stands to profit from the hoist.

Larry Fortado, owner of Three Captains Sea Products, filed the lawsuit in San Mateo County Superior Court on Tuesday, June 4, 2015 alleging loss of income because he was denied use of a hoist he installed to offload fish from boats at Pillar Point Harbor.

Larry Fortado and his not so silent business partner John Dooley are mad as a hornets nest because a group of fishermen turned them in for neglecting to apply for a Coastal Development Permit for the hoist.

After Coastal Commission staff met with fishermen a permit waiver was pulled off a 2014 Coastal Commission meeting agenda and a full permit was required. Three Captains neglected to provide the Coastal Commission with a complete permit application before or after the hoist was installed.

In 2015 the Harbor Commission passed a resolution that denied renewal of a one year probationary hoist agreement.

Larry Fortado and John Dooley swore to get even and filed a meritless lawsuit.

Harbor District Legal Fees By The Hour

June 7, 2015 Daly City Community Garden

In 2014 six law firms responded to a Harbor District RFP for general legal counsel. On May 21, 2014 three of the six firms were recommended by then General Manager Peter Grenell to replace Aaronson, Dickerson, Cohn & Lanzone.

Harbor Commissioner Robert Bernardo loves corporate lawyers

The following three firm were recommended by Peter Grenell and considered by the board of Harbor Commissioners:

Mark C. Watson $185.00 per hour (Peter Grenell's personal attorney)
BBK, Christopher J. Diaz $275.00 per hour
Hanson Bridgett, Steven Miller, Partner $345.00 per hour

On June 4, 2014 Harbor Commissioners met at Sea Crest School in Half Moon Bay to discuss hiring a new law firm. Nothing was reported out of closed session.

After concerns were raised by Commissioner Brennan about an apparent conflict of interest regarding attorney Mark C. Watson and his business relationships with Peter Grenell and Commissioner Jim Tucker the board decided to hire Hanson Bridgett.

On June 18, 2014 Harbor Commissioners voted in open session to hire Hanson Bridgett.

Agenda Item 5—Selection of Law Firm Hanson Bridgett LLP to Provide Legal Counsel Services & Approval of Contract 18:00
Commissioner comments 19:48

Hanson Bridgett's rate ($345.00 per hour) is significantly higher than the rate Aaronson, Dickerson, Cohn & Lanzone charged ($190.00 per hour) the Harbor District.

Do the Math

Based on the above legal expense report it appears BBK would have saved the Harbor District almost $30,000. in general counsel legal fees from July 2014 through March 2015. BBK's hourly rate of $275.00 adds up to significant savings over time. Hanson Bridgett's hourly rate of $345.00 is above what the District can reasonably afford.

Pacific States Marine Fisheries Commission vs. Three Captains' Sea Products

June 6, 2015 Daly City Community Garden

Pacific States Marine Fisheries Commission (PSMFC) filed a complaint against Three Captains' Sea Products on Feb. 10, 2010 in San Mateo County Superior Court.

The claim for relief included $120,097.27 in damages.

PSMFC made an administrative error in 2008 and 2009 while issuing checks for the California Salmon Disaster Relief Programs. PSMFC inadvertently double paid Larry Fortado, owner of Three Captains' Sea Products. The total amount of the overpayment was $120,097.27.

PSMFC and their attorneys sent Larry Fortado letters seeking reimbursement on July 31, 2009, Sept. 30, 2009, November 18, 2009 and Dec. 29, 2009.

After a jury trial was demanded Larry Fortado paid back the federal disaster relief money he owed PSMFC.

Read the Complaint — Case No. 491958