News of the Absurd?: $326 Bill Turns Into $160,000 in Legal Fees for Florida Pension

A lawsuit over a few hundred dollars has ballooned into legal costs of more than 490x the original suit for Jacksonville's Police and Fire Pension Fund.

(June 8, 2011) — As part of a public records lawsuit, a $326 bill has turned into $160,000 in legal fees for Jacksonville’s Police and Fire Pension Fund, The Florida Times-Union is reporting.

In late 2009, Curtis Lee, a retired New York lawyer and the director in the nonprofit Concerned Taxpayers of Duval County, requested to see the scheme’s financial records, yet when he arrived at the fund’s office, he was told that he would need to pay $326. Without looking at the records or paying the bill, he left and sued the pension, saying the scheme had not adhered to state law. In response, the Florida pension is seeking assistance from a law firm that charges $285 per hour.

Lee sued the Florida fund, criticizing the scheme’s management. He said he had spent another $30,000 on an attorney after first representing himself for several months, The Florida Times-Union reported.

With closing arguments offered in April, Circuit Judge James H. Daniel will rule on the case. Lee and the Police and Fire Pension Fund — which never planned on such high legal costs, yet was forced to defend itself from Lee’s suit — blame each other for the expenses of going to court, the newspaper said, and are hoping that the judge will order the other side to pay the bill.

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“We have a lawyer because he sued us. That’s about all I can tell you,” John Keane, the fund’s administrator, told the Jacksonville-based newspaper, referring to Lee’s suit. Keane called the costs “incomprehensible.”



To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742

TimberWest Looks Ready to Settle for Original Pension Suitors

As Vancouver-based TimberWest Forest Corporation nears the end of its 60-day “go shop” period, the company looks ready to accept the original $1.03 billion bid made by two Canadian public sector pension plans.

(June 7, 2011) – Canadian timber and land management giant TimberWest Forest Corporation announced that its 60-day search for a superior bid had proven fruitless and that the original $1.03 billion offered by two Canadian public pension plans is the best it expects to receive, according to a press release from the company.

TimberWest agreed to British Columbia Investment Management Corporations (BCIMC) and the Public Sector Pension (PSP) Investment Board’s $1.03 billion offer on April 11 with the stipulation that TimberWest could have 60 days to solicit a higher proposal from a third party. The 60-day “go shop” period will end on Thursday.

“While it is still possible that a superior proposal will emerge prior to June 9, 2011, the company does not expect this to occur,” TimberWest said in the release.

TimberWest’s financial advisor, BMO Capital Markets, contacted 31 parties during the “go shop” period and entertained offers from five that entered standstill and confidentiality agreements. Under the original $1.03 billion deal TimberWest shareholders would receive $6.16 per unit, representing a 19.6% premium over to the company’s trading price on the day before the deal was offered. TimberWest’s stock is currently trading at $6.09.

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TimberWest is set to hold an annual general and special meeting of stockholders next Tuesday in Vancouver to vote on the proposed takeover by BCIMC and PSP. The TimberWest board had previously endorsed the pension funds’ offer.

Timber products in general are currently enjoying a healthy market, with pension funds moving capital into this space to take advantage of heavy Asian demand. The Alberta Investment Management Company (AIMco) and the San Diego Country Employee Retirement Association (SDCERA) have both recently made significant moves into this space, for example.



<p>To contact the <em>aiCIO</em> editor of this story: Benjamin Ruffel at <a href='mailto:bruffel@assetinternational.com'>bruffel@assetinternational.com</a> </p>

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