The Utah Supreme Court has rejected an appeal by plaintiffs in a $23 million fraud lawsuit against the Ogden City Council, agreeing with a lower court that found the complaint insubstantial.
Chief Justice Michael D. Zim-mer-man wrote that the justices supported 2nd District Judge Michael Lyon's ruling that the suit by six Ogden residents is "so insubstantial as not to merit further proceedings and consideration by this court."One of plaintiffs, Gary F. Sil-ver-wood, said Thursday that plans were being made to file a new appeal in U.S. District Court sometime next week.
The suit was prepared by engineer Gerard A. Arthus, who has filed to run for a seat on the council. The complaint charged that the council deceived the public by not announcing a $23 million bond would accrue interest.
Besides Arthus and Silverwood, the sole remaining plaintiff from an original group of six is Connie Chandler.
Lyon tossed the suit out in June, calling the plaintiffs "reckless and irresponsible."
"The city had a duty only to state the face value of the bonds, not the total amount of money the city would ultimately pay on the bonds," Lyon ruled.
The bond issuance, approved by 73 percent of voters in March, will pay for an $11-million public safety building and Municipal Building renovation.
Council members were elated with the high court's decision.
"If I'm doing something inappropriate, then it should come out," Councilman Rick Mayer said. "But I draw the line and resent being called names, called swine, insinuations that I'm dishonest."
Reacting to the high court's ruling last week, Connie Chandler vowed to fight on.
"Just wipe that smirk from your faces, (Council members) Jesse Garcia and Adele Smith," Chandler said. "It is not over. We still have time to appeal."