Oakland's 'tortious interference' bankrupted a coal company. Now the city could owe millions.

"Oakland is on the hook for potentially hundreds of millions of dollars in damages after a federal bankruptcy court judge ruled Monday that the city "tortiously interfered" with a developer's efforts to build a coal terminal. Insight Terminal Solutions subleased property from another company, Oakland Bulk and Oversized Terminal, on Oakland's waterfront years ago hoping to operate a marine export terminal that would ship coal to overseas markets."

"Lloyd found that Oakland is liable because it "prevented [Insight] from securing financing, developing the Terminal, and realizing the value of the sublease, thereby forcing [Insight] into bankruptcy and causing damages." Lloyd noted that despite rulings against the city in multiple courts, officials continued "with their pattern of interference," citing Mayor Barbara Lee's promise to "do everything in her power to stop development of the Terminal.""

"During her political campaign earlier this year, Lee signed a pledge to not accept money from coal interests and vowing to oppose the creation of a coal terminal in West Oakland. City Attorney Ryan Richardson also signed a pledge to not take money from coal interests, but also told activists he would follow whatever directive the City Council and city administration gave him regarding legal matters."

A federal bankruptcy court found Oakland liable for tortious interference after city actions prevented a developer from building a coal export terminal on the waterfront and from securing financing for the project. Insight Terminal Solutions had subleased property from Oakland Bulk and Oversized Terminal intending to operate an export terminal that would ship coal overseas. City officials, responding to pressure from residents and activists, took numerous steps to block construction and financing. City leaders publicly pledged opposition to coal interests and to the terminal. Damages will be determined at a future hearing; Insight has claimed $673,658,000 in damages.

Read at The Oaklandside