There was one other spicy bit of news to emerge from the first few minutes of Tuesday morning’s (Pacific Lumber bankruptcy) hearing. That is, that the Maxxam family of companies has reached an agreement with Humboldt County District Attorney Paul Gallegos. Their agreement concerns the great issue that has defined Gallegos’ career as a prosecutor -- the massive fraud suit he filed against the company shortly after taking office, which led to the dirty Maxxam-financed recall attempt against him, which led to his enshrinement as the untouchable figurehead and heartthrob of all good, right-thinking people. Then the suit itself was thrown out of court, after an out-of-town judge ruled that it had no basis in law.
Gallegos appealed, but the appeal was automatically stalled when Pacific Lumber went belly-up. Well, at Tuesday’s bankruptcy hearing, it was announced that Maxxam had magnanimously consented to allow the Gallegos appeal to proceed.
This move can be read in two ways. Perhaps the company wishes to atone for its past sins against Gallegos -- and, by extension, the people of Humboldt County -- by allowing itself to be eviscerated by the DA’s righteous pursuit of justice. Or perhaps it believes that Gallegos doesn’t have the slightest chance in Hell of prevailing. You be the judge. The Journal/Town Dandy/Smörgåsbord of scandal
You know which one I choose. Now's a test for Paul - can he stand up to his handlers and say, "NO. I am done with the Palco debacle."?