Letter from KID attorney Laurence Kogan to KID
board members regarding special C Flume meeting
Dear Board Members,
The contents of the recent June 15, 2016 correspondence
addressed to Chairman Cheyne from Reclamation representative
Brian Person reflects the Bureau's making of unauthorized
additional unilateral post-execution changes to the C Flume
Replacement financing agreement that render this contract
inadequate for C Flume Replacement Project needs.
Due to these changes, the District will be unable to afford the
all-in cost of the C Flume Replacement Project. It is
therefore, not necessary to convene a special meeting at this
time to reaffirm the contract for Reclamation's benefit.
The District will be unable to afford this Project because of
1) the BOR is unwilling to guarantee funding on the Project for
more than $5.5 million of the $7.45 million promised in the
2) the BOR is now requiring the District to pay the first $1.71
million of financing (to Adkins) prior to BOR disbursement of
the $5.5 million;
3) the low bid is likely to exceed the $8.5 million quoted (most
low bids are not insubstantially (10-20%) underbid); and
4) the all-in Project cost of the C Flume Replacement Project
(including both construction and other costs, including
Reclamation analyses) is likely to exceed $10 million.
Indeed, it is my professional opinion, based on a review of the
circumstances (the Bureau's behavior) leading up to this Board's
execution of said contract on May 31, 2016, that the District
entered into such contract under duress and false pretense, with
the Bureau making certain untrue representations to the Board
that led Board Chairman Cheyne and other Board members to
conclude that they had no choice but to sign the contract at
such time. It is a clear principle of contract law that if a
contract is entered into under duress and false pretense, it may
be treated as void ab initio (as of its signing).
As each of you is aware, I clearly communicated this point to
Messieurs Murillo, Manzo, Barajas, Palmer and Person during my
BOR Sacramento meeting of June 7, 2016 and in my June 17, 2016
written reply correspondence to Mr. Person.
If you have any questions or comments, please don't hesitate to
The Kogan Law Group, P.C.
100 United Nations Plaza
New York, NY 10017
(o) (212) 644-9240
(c) (609) 658-7417
This email transmission, including the information contained
within and accompanying it, is intended ONLY for the person(s)
or organization(s) to which this transmission is addressed and
may be of a confidential and/or legally privileged nature.
Please delete this message and all accompanying attachments, or
immediately contact the sender or The Kogan Law Group, P.C. at <firstname.lastname@example.org>
if you have received this message in error. Unintended
transmission shall not constitute waiver of the attorney-client
or any other privilege.
--------- Original Message --------- Subject: June 23rd, special
From: "Linda Seater" <email@example.com>
Date: 6/17/16 4:50 pm
Cc: "Lawrence Kogan" <firstname.lastname@example.org>,
"NATHAN RIETMANN" <email@example.com>
Please see attached Notice and Agenda regarding a 10 a.m.
Thursday, June 23rd special meeting held at KID's headquarters
located at 6640 KID Ln, KFalls.
In accordance with Title 17 U.S.C.
section 107, any copyrighted material
herein is distributed without profit or
payment to those who have expressed a
prior interest in receiving this
information for non-profit research and
educational purposes only. For more
information go to: