Judge Sets Trial Date in Ontario Airport Suit

An Aug. 17 trial date was scheduled Wednesday in the city of Ontario’s breach of contract lawsuit against a Los Angeles city agency for what the plaintiffs contend is poor management of Ontario International Airport, over which Ontario wants control.

Riverside County Superior Court Judge Gloria Trask set the summer date after both sides in the civil action agreed to be prepared to litigate the case.

A city-issued statement says Ontario “looks forward to its day in court and for Los Angeles to be held accountable for its inexcusable neglect of its obligations to promote air service development at Ontario. At trial, Ontario will seek damages and an injunction to regain control of the airport.”

Attorneys for Los Angeles World Airports, the city agency that operates Los Angeles International Airport, Van Nuys Airport and the Ontario airport, did not immediately respond to requests for comment.

Last month, Trask ruled against Ontario in its motion to have the 1967 joint powers agreement that placed the airfield under Los Angeles’ authority voided. The defendants successfully argued that the original compact could not be undone absent a showing of fraud, of which Trask found no evidence.

The plaintiffs contend that LAWA has intentionally shelved marketing plans and created other impediments for Ontario to ensure a steady and growing stream of business for LAX.

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 -- who recently announced her impending retirement after eight years at the helm of LAWA -- characterized a proposal to direct more passenger flights to Ontario as a “waste of time.”

Ontario’s suit was filed in June 2013 after negotiations for an ownership transfer hit an impasse. One of the chief stumbling blocks was LAWA’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.

Most inland governing bodies, including the Riverside City Council, back an independent Ontario airport. 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.

Passenger loads at the airport have fallen 40 percent -- from 7.2 million to 3.9 million annually -- since 2007, according to the study, which noted that at the current rate, passenger levels will fall below 2 million by 2024, costing the regional economy an estimated $430 million in lost economic activity annually.

– By City News Service.

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