How many lawsuits does it take?

If you are a Palco worker who went to the "Free Public Workshop" (Bankruptcy 101: Understanding the Palco Chapter 11 Case) offered by the Crocodile Tears 'coalition' - I'm just curious - did anyone tell you about all the lawsuits the activists filed against Palco? No? Because it's time to 'move beyond that.' Now it is about 'healing' the wounds. But who inflicted the wounds? You know the answer.

Anyone who's lived here has experienced the steady drip, drip, drip of lawsuits, but never seen them all in one place, and probably never thought about how inter-related they all are. I'll bet "Humboldt Watershed Council" "President" never tells you about The Committee of Concerned Maxxam Shareholders (the "Committee.") (Or, in other words, the Rose Foundation.)

In May of 2000 "The Committee" * sent a letter to Maxxam's 'fellow' shareholders, declaring that they were "seeking your support because the Committee believes that Maxxam is a company in trouble." It appears they wanted to get their guys elected to the Board of Directors. And, as justification, they complained that "Maxxam is a company in trouble," and they delineated the reasons why. All those lawsuits, driving the company down. Never mentioning the source. I suppose if they were successful in gaining control of the company, all those lawsuits, and all those protests would have gone away.

"...Maxxam's Pacific Lumber subsidiary remains a focus of controversy and litigation:

-- Three pending lawsuits claim that Company logging operations have damaged neighboring property and property values; these suits seek unspecified monetary damages, and ask the court to enjoin certain future timber operations of the Company.

-- A wrongful death suit, filed in September, 1999, seeks unspecified damages based on allegations that Pacific Lumber's conduct and policies led to an incident in which an employee killed a young man by felling a tree on top of him.

-- The Sierra Club and the Environmental Protection Information Center ("EPIC") have sued to block logging on a piece of Company property that is surrounded on three sides by the newly created Headwaters Reserve, alleging the modifications in the plan did not receive appropriate environmental review.

-- On March 31, 1999, EPIC and Sierra Club sued to stop implementation of the Pacific Lumber Sustained Yield Plan ("SYP"), the Company's comprehensive plan for logging operations over the next 120 years, claiming that the plan violates both California's Environmental Quality Act and Endangered Species Act.

-- Also on March 31, 1999, Don Kegley and the United Steelworkers of America filed a separate lawsuit challenging the SYP on the grounds that it fails to provide for sustained timber production and harvesting over time. Additional information on this action is supplied below in the "Solicitation" section of this proxy statement.

-- EPIC and Sierra Club have also filed a Notice of Intent to Sue challenging the Company's Habitat Conservation Plan, on the grounds that it does not meet the requirements of the federal Endangered Species Act.

Eight lawsuits in 1999 alone?

Plus:

Maxxam faces potential liabilities in two separate legal proceedings based on the failure and subsequent $1.6 billion bailout of United Savings Association of Texas, a savings and loan association that Maxxam is alleged to have controlled.

Maxxam and Charles Hurwitz, the Company's Chief Executive Officer and Chairman of the Board, are respondents in an action brought by the Office of Thrift Supervision ("OTS"), an agency of the United States Department of the Treasury, seeking $821,000,000 in restitution. Maxxam has agreed to indemnify Mr. Hurwitz and several other respondents in this action, which could result in significant exposure for restitution and penalties. That case is being litigated before an administrative law judge, who is expected to rule later this year. No determination as to the merits of this case has been made at this time, and a final judgment will be determined in an appropriate administrative proceeding (In the Matter of United Savings Association of Texas).

In addition, Mr. Hurwitz is currently defending a lawsuit brought by the Federal Deposit Insurance Corporation ("FDIC"), "

They claimed that: "The Committee also believes that electing these independent candidates is important, given the Company's failure over the past year to capitalize on the so-called "Headwaters Agreement."

Under this Agreement, into which the Company entered on March 3, 1999, Maxxam received an extraordinary payment of $380 million in cash and property from the United States and the State of California, as payment for the sale of 5,600 acres of forest land owned by Pacific Lumber Company in northern California. But despite Maxxam's recognition of a $239 million gain in the Headwaters transaction, shareholders have seen relatively little benefit from the Headwaters Agreement. The Company reported significant operating losses and a relatively small amount of net income, and, approximately one year after consummation of the Headwaters Agreement, Maxxam stock price is where it was five years ago."

Gee, I wonder why?

They do not cop to - The "Rose Foundation's" apparent significant and aggressive role, again not acting as a passive donor, but acting, according to reports, as activists and lobbyists set on making Hurwitz guilty, and then using that to force the turnover of his land. The FDIC suit they caused to be brought about was recently characterized by they judge as the government acting like the mafia.

Going forward, as it was happening, it would have been nearly impossible to detect, each incident would be taken on its own merits, and seen as unrelated - kinda like Salzman's paving the way for Cotchett's new lawsuit, doesn't seem important, seems crazy to wonder what the hell is up with that - but looking back, there's a lot of pieces of the puzzle that need to be put together.

Related:
Copy of "The Committee's" Proxy Solicitiation posted on watchpaulARTICLES
Two more suits
HC - File suit, fail and repeat as needed in Hurwitz case

* Members of "the Committee" are The Rose Foundation for Communities and the Environment (the "Rose Foundation") and the United Steelworkers of America ("USWA").
"In 1999, the Committee conducted an independent proxy solicitation on behalf of Mr. Mikva and another candidate and in favor of resolutions similar to the Cumulative Voting and Declassified Board Proposals being offered this year. In addition the Rose Foundation (a Committee member), along with Jill Ratner, its president, and Thomas W. Little, its executive director, were sponsors of a cumulative voting resolution similar to the one submitted this year by the As You Sow Foundation and John C. Harrington, who were also sponsors of that 1999 resolution. In 1998, Ms. Ratner and Mr. Little, along with the California Public Employees Retirement System ("CalPERS"), sponsored the Declassified Board Proposal that Brent Blackwelder has submitted for consideration by the shareholders this year. In 1997, Ms. Ratner, Mr. Little, and the As You Sow Foundation conducted an independent proxy solicitation on behalf of two other independent candidates for Common Director, as well as a shareholder resolution asking the Company to sell or trade its properties within the 60,000 acre Headwaters Forest area in northern California to a government agency or conservation organization for appropriate consideration"