George Johnson Sues ACC for $450M - SanTanValley.com

George Johnson Sues ACC for $450M

George Johnson Sues ACC for $450M
George Johnson Sues ACC for $450M

Pinal County Superior Court Judge Stephen McCarville ordered George H Johnson and Johnson Utilities to comply with the Arizona Corporation Commission's July 24, 2018 order to grant full access to Epcor as an interim Manager by 2:00 p.m. August 30th, 2018 or face jail time. 

That order was given August 29, 2018 and Jeffrey Crockett, an attorney for Johnson Utilities, notified the ACC that Johnson Utilities would comply with the order.  That same day, George H Johnson, through his revocable trust and Johnson Utilities, filed a $450M law suit against the Arizona Corporation Commission, claiming the ACC had not offered to compensate the trust or Johnson Utilities and had subsequently acted to "deprive the trust and Johnson Utilities of its right of ownership under Arizona law".

Neither the GHJ Trust nor JU was allowed to negotiate, or even provide input on the terms of the relationship with an interim manager.  The GHJ Trust and JU object to the imposition of any interim manager, as it constitututes an inverse condemnation without just compensation, alternatively, it constitutes a regulatory taking and further, improperly interferes with JU's contractual relationships.

The suit claims that "JU and the GHJ Trust firmly believe that the imposition of the interim manager will deprive JU and the GHJ Trust of the entire value of JU, not only on a temporary basis, but that the imposition of the interim manager will cause long lasting and severe diminution or destruction of the value of JU."

The GHJ Trust and JU will however "settle the matter for $450,000,000.00".

Read the full suit here.

As of the 2:00 p.m. deadline, August 30, 2018, Johnson Utilities had turned over access to the financial systems to Epcor and the Interim Manager agreement that had previously been suspended had been reinstated.

[READ MORE: EPCOR Reinstated as Interim Manager]

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