Humboldt Timber Trasher Spends $40 Million to Win $10 Million from the Taxpayers
After a bitter 13-year legal battle, Maxxam Inc. has finally put down its arms and agreed to accept a $10 million settlement to end a bitter dispute with the Federal Deposit Insurance Corp., which at one time was ordered to pay $72.3 million in sanctions to Maxxam.
Charles Hurwitz, chairman, chief executive officer and president of Houston-based Maxxam, says one of his lawyers told him it's the largest-ever settlement with a government agency. The settlement certainly was a long time coming, he says, because it has been 20 years since the savings-and-loan failure that was the subject of the litigation...
...Hurwitz says he agreed to accept the FDIC payment to end the long-running litigation because "I'm kind of tired of paying lawyers. It kind of got to a price where we just said OK."
Maxxam spent at least $40 million on the litigation, says Joli Pecht, an assistant general counsel at Maxxam who adds "we've all gotten old and gray" over the course of the legal battle that began in 1995 with Federal Deposit Insurance Corp. v. Charles E. Hurwitz, et al.
In that suit, filed in U.S. District Court for the Southern District of Texas, the FDIC attempted to force Hurwitz to reimburse the federal government for money lost in the $1.6 billion bailout of United Savings Association of Texas, which failed in 1988....
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