California Rural Legal Assistance, Inc.

FOR IMMEDIATE RELEASE:
June 4, 2010

Contact:
Phoebe Seaton, California Rural Legal Assistance, Inc
Phone: (559) 441-8721, pseaton@crla.org

Legal Settlement Relieves the Community of Lanare of Almost $30,000 of Debt

Fresno, CA. - Juventino Gonzalez, a resident of Lanare, California and Kenneth Souza, the manager to the Lanare Community Services District (LCSD) settled a lawsuit today that resulted in a $28,100 victory for Lanare residents.

Mr. Gonzalez, represented by California Rural Legal Assistance, Inc. filed a lawsuit in April of 2010 alleging that Mr. Souza had breached his contracts with the Lanare Community Services District, had engaged in fraud, and had wasted the resources and caused injury to the finances of the LCSD. Pursuant to the terms of the settlement, Mr. Souza forgave the debt of $28,100 that he alleged the LCSD owed him for past due contractual fees.

The Lanare Community Services District provides drinking water and irrigation water to its customers and, like Mr. Gonzalez, all customers are dependent on the district for water services. The LCSD serves approximately 170 water connections in low income, unincorporated community of Fresno County.

Ken Souza has served as the manager of the LCSD since 2007 and during his time as manager, the LCSD's debt has increased substantially, customers have experienced two service rate increases, and the water remains undrinkable due to high levels of arsenic. Initially, Ken Souza contracted with the LCSD for contractual fees of $5,000 per month, equivalent to approximately $30 in monthly fees for each of the LCSD's customers. The LSCD, unable to pay, incurred a debt to Mr. Souza in the amount of $28,100.

Frustrated with Mr. Souza's actions, Gonzalez decided to take action. "He has engaged in abuse over abuse, has not complied with his contracts, and he has to do with a lot of the disaster in the community", Gonzalez said. On May 26, 2010 both parties agreed to settle and Mr. Souza agreed to forgive all outstanding claims from the LCSD for payment on his first three contracts with the District totaling to $28,100, to relinquish his right to all causes of action against the LCSD in connection with his first three contracts and his services as manager, to perform all duties associated with his present contract, and to send notice of all payments made to him to Mr. Gonzalez and the LCSD board members. Additionally, the water system of the LCSD is about to enter into receivership and under the settlement agreement, Mr. Souza will perform all duties required to ensure a successful transition between himself and the future receiver appointed by the Superior Court to manage the LCSD.

"Many communities, like Lanare, are often left to fend for themselves and withstand mismanagement of the very few resources that they have; Mr. Gonzalez stuck his neck out and has done great service for his community as a result of this case" said Kara Brodfuehrer, attorney with California Rural Legal Assistance, Inc. Thanks to Mr. Gonzalez's unwavering courage, the community can reduce their debt by $28,100, can secure a successful transition into receivership, and can continue to fight for the hope of one day receiving safe and clean drinking water in their homes.

About CRLA
CRLA's mission is to provide high-quality legal services that improve the quality of life for lowincome individuals and their rural communities. CRLA legal services are shaped by the needs of our diverse client community. Through a state-wide network of 21 offices, our staff conducts litigation, outreach and legal education on the most pressing issues facing low-income communities: housing, employment, education, workplace safety, discrimination, income maintenance and healthcare access.

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