Judge Rejects Request to Dismiss Ontario Airport Suit

By City News Service:

A civil trial to determine who should control Ontario International Airport will go ahead as planned after a Riverside judge Thursday rejected a motion by the city of Los Angeles to have the case tossed.

“We are extremely pleased and not at all surprised by today’s court decision denying a late attempt by Los Angeles to dismiss Ontario’s claims for L.A.’s breach of its contractual and fiduciary duties,” Ontario International Airport Authority President Alan Wapner said. “Ontario continues to vigorously prepare for trial ... where we will seek damages and an injunction to regain control of Ontario International Airport.”

The trial is set to begin Aug. 17. Riverside County Superior Court Judge Gloria Trask scheduled the litigation date in February. She received a motion for summary adjudication in favor of the defendants last week and issued her ruling this morning.

An attorney for Los Angeles World Airports, L.A.’s aviation authority and the agency responsible for Ontario airport, did not immediately respond to requests for comment.

The plaintiffs contend that LAWA has intentionally shelved marketing plans and created other impediments for Ontario so that LAX might enjoy a steady and growing stream of business. LA became the airport’s controlling entity under a 1967 joint powers agreement with Ontario.

In court papers, Ontario’s attorneys cited remarks by former Los Angeles City Councilman Richard Alarcon, former airport commissioner Alan Rothenberg and current LAWA Executive Director Gina Lindsey indicating apparent hostility to any effort that might boost business at Ontario.

Documents allege Lindsey characterized a proposal to direct more passenger flights to Ontario as a “waste of time.”

Ontario filed its suit in June 2013 after negotiations for an ownership transfer hit an impasse. One of the chief stumbling blocks was L.A.’s request for $475 million to relinquish the airfield. According to LAWA, nearly $500 million has been invested in runway and other terminal upgrades since the late 1990s.

The plaintiffs are alleging breach of contract and breach of fiduciary duty against LAWA, which maintains there’s no evidence of a failure to faithfully manage the facility.

Ontario accuses LAWA -- and by extension, the city of Los Angeles -- of neglect of the airfield, leaving it at a competitive disadvantage by keeping ramp fees high while lowering them at LAX in order to draw more traffic to the coast.

Supporters of the “Set Ontario Free” campaign made an offer of $50 million cash and to assume debts attached to the airport, if LAWA would let it go, according to Roy Goldberg, one of the attorneys representing Ontario.

In 2013, the Ontario International Airport Authority was formed to assume operational responsibilities when and if a transfer occurs.

The OIAA commissioned a study indicating that, without steps to increase the airport’s visibility through general promotional campaigns and direct marketing to airlines, the field’s future prospects will continue to dim.

Between 2007 and 2013, passenger loads at the airport fell 40 percent, according to the study. However, the trend reversed last year, when passenger traffic expanded about 3 percent, figures showed.

(Image via Shutterstock)