City Attorney "Appeals court ruling of minor importance"

Fillmore City Attorney Ted Schneider told the Gazette Wednesday that the recent appeals court ruling had little impact on the outcome of the Livermore-City of Industry lawsuit over sales tax revenue. Schneider stated that the court’s ruling was “very technical, procedural” and in his view did not effect Fillmore’s right to performance under the contract with Owens & Minor. The dispute arose over a 2007 contract permitting Fillmore to receive 15 percent of state sales taxes generated by Owens & Minor, a Fortune 500, Virginia based medical supply company. A sales office was opened in Fillmore but products are stored and distributed from the Cities of Industry and Livermore.

Fillmore collects about $1 million per year under the 20-year contract. Livermore and Industry claim the office and contract are a sham. Fillmore won its main case but, due to a technicality, must pay the other plaintiff’s receipts from October 2007 to December 2008. Following this dispute, then Governor Schwartzenegger signed a law prohibiting such agreements. However, Fillmore’s existing contract with Owens & Minor will stand, according to Schneider.