Developer denied discussion records

The developer of River Park Square does not have a right to records of political discussions between city officials and Metropolitan Mortgage in the ongoing dispute over the mall’s garage, an appeals court ruled Thursday.

The three-member appeals panel ruled that Superior Court Judge James Murphy correctly denied the mall developer’s subpoena for records involving Met and four elected city officials. Granting the request would have violated the company’s rights of free speech and political association.

The request for documents, which could have involved some 462 boxes of documents for review, was “overly broad and burdensome,” the panel added.

Murphy was also correct in ordering the developer to pay the Met’s attorneys fees, although the trial court record doesn’t have enough information to determine whether the fees for two council members’ attorneys are reasonable, the panel said.

The records were sought in one of the cases in state court involving the mall’s financially strapped parking garage. Those cases are currently on hold while the federal securities fraud lawsuit is moving toward trial or settlement.

In 2002, the mall’s developer sued some members of the Spokane City Council for “tortious interference,” claiming false statements they had made damaged the project. In June of that year, attorneys for the developer filed subpoenaes for any records of discussions, campaign contributions, payments or meetings involving Metropolitan executives, their political consultants and former Mayor John Talbott, Councilwoman Cherie Rodgers and then-Councilmen Steve Eugster and Steve Corker.

Metropolitan executives had been active in city elections dating back to 1997, and in some cases helped set up political action committees that donated money or political services to candidates they supported.

Those candidates were opposed to the public-private partnership between the city and the mall developer. When elected, the four office-holders named in the lawsuit constituted a majority that shifted city policy on the project.

River Park Square is owned by affiliates of Cowles Publishing Co., which also owns The Spokesman-Review. The developer’s attorneys wanted “a substantial amount of information about Metropolitan’s political affiliations and activities … as well as its communications about various political issues to political candidates, officials and news organizations,” the appeals court said. The company could mark documents confidential, but that wasn’t enough to “overcome the chilling effect” to Free Speech rights, the panel said.

Met received some $27,000 in attorneys fees for fighting the subpoenas, which the court said was reasonable based on the record. It’s entitled to more fees, for handling the appeal, the panel added.

Eugster, who defended himself, was granted $4,755 and Rodgers’ attorney nearly $9,500. The appeals court said there wasn’t enough information to determine if they’re reasonable, and sent them back to the trial court for further hearing.