Yet even as the EMC was "feeding and watering" some of Cobb's business and corporate elite at the lunch, Brown and the EMC legal team were sitting on the news of the adverse ruling, which had been released by the court that morning.
That ruling constituted a major setback for Brown and his legal team that was not just highly embarrassing, but also potentially threatening.
Brown's legal team's briefing to about 200 community leaders featured nearly two hours' worth of upbeat reports from former Superior Court Judge Tom Cauthorn of Marietta, who headed an eight-month investigation into the allegations of fiscal mismanagement against Brown regarding the creation of the for-profit Cobb Energy, and who said Brown did nothing wrong; and lawyer Dwight Davis of Atlanta's King & Spalding offering his analysis of Cobb District Attorney Pat Head's high-profile probe into alleged criminal mishandling of the utility's funds.
Nothing apparently has come of Head's investigation since dozens of GBI agents swooped down last spring on the homes and offices of Brown and EMC Chairman Larry Chadwick. The raids sought any documents or other evidence of racketeering and theft, and followed the lawsuit brought by Butch Thompson, Bo Pounds and several other EMC members and ratepayers in October 2007 accusing the EMC bosses of breach of fiduciary duty, gross mismanagement, waste of corporate assets and unjust enrichment involving Cobb Energy. The suit was settled in December 2008. It called for the EMC's for-profit subsidiary, Cobb Energy, to be shut down and its money-losing ventures to be folded back into the EMC. It also called for Thompson and Pounds to come up with new ways to allow its 200,000 members to vote on board members.
Historically since the utility's founding in 1938, board voting took place on-site during the annual meeting, typically in September. Thompson and Pounds want to make it possible to cast votes not just in person but also by mail, which they think would make it easier to remove Brown and his supporters on the EMC Board, who they see as rubberstamps. But the EMC board wasted no time after that Dec. '08 settlement before it unilaterally changed its bylaws to effectively give the board more control by allowing voting by proxy, which in corporate America tends to favor entrenched management. Those changes prompted the plaintiffs' appeal, to which the court ruled unanimously this week in their favor.
"COMING OUT": Meanwhile, Head's long delay has fueled confidence on the part of Brown and EMC brass that nothing will come of that investigation, which some of his allies have privately labeled as "a witch hunt" and "a PR stunt."
Also giving Brown confidence was this week's approval by the state Environmental Protection Division of a $2.1 billion coal-fired power facility near Sandersville on behalf of Cobb EMC and five other EMCs. And he and the EMC board had been heartened by Cobb Superior Court Judge Steve Schuster's decision in their favor on the EMC bylaws (the ruling that, as it turned out, was overturned unanimously this week by the Appeals Court), which they thought would allow the 10 pro-Brown members to remain on the board. Those factors combined to give Wednesday's luncheon the feel of a "coming out" party for Brown.
His lunch meeting took place in the community room of the EMC headquarters. Davis, a white-collar criminal defense attorney from King & Spalding, told the assembled guests that Brown had done nothing wrong and that all compensation he has received was either in the form of salary, dividends or pursuant to his management contract - and that all of it had been approved by the board of directors.
Brown did not speak, leaving the talking to the high-priced lawyers and EMC PR spokesman Sam Kelly, who lavished praise on him and never mentioned the Appeals Court's ruling of that morning - a ruling that may well hasten the day that the board finally holds new board elections that could lead to the ouster of Brown and his supporters.
BUT UNBEKNOWNST TO THE LUNCH GUESTS, a dark cloud appeared on the EMC board's horizon in the form of the 3-0 decision announced that morning by a three-judge panel of the Georgia Court of Appeals finding in favor of Thompson and Pounds. The court held that bylaw changes by the EMC directors were contrary to terms of a settlement agreed to by both parties specifying that the plaintiffs (Thompson and Pounds) should prepare a plan for future election of directors.
It was a sweeping reversal of Judge Schuster's order that had handed Cobb EMC management victory on the board elections issue.
In addition to issuing a stinging defeat to the EMC, the court also came down hard on Judge Schuster. One particularly damning part of the appellate opinion sounded like a judicial reprimand: "The trial court (Schuster) erred in allowing Cobb EMC to modify the voting procedures in a manner contrary to the plain and unambiguous terms agreed upon by the parties."
The case now has been sent back to Schuster who is "to issue an order, consistent with this opinion, that enforces the terms of the settlement agreement" - basically telling Schuster to let the utility move ahead with new elections. In fact, several seasoned lawyers who have read the Appeals Court's decision described it to AT as having sent Schuster a message to "Let the elections begin."
AS FOR DA HEAD'S INVESTIGATION, AT has learned that he apparently is waiting for the U.S. Supreme Court to rule on a RICO case that would guide his decision on whether to indict or not. But several lawyers unconnected with the case have told AT they think Head's investigation has dragged on long enough and that it's time for him to "fish or cut bait." And even some of Brown's strongest detractors think Brown and the EMC have been left twisting in the wind long enough.
ALTHOUGH INCUMBENTS locally and nationally are fearing an anti-incumbency backlash in the summer primaries and the November general election, one incumbent not expecting much, if any, such backlash is Western District Commissioner Helen Goreham.
The two term commissioner is expected to kick off her campaign for another four year term on Thursday between 5:30 to 7:30 p.m. p.m. at the new Pinnacle Orthopedists building on Tower Road near WellStar Kennestone Hospital
Ms. Goreham is being challenged in the July 20 Republican primary by former Kennesaw Mayor Leonard Church, who most politicos rate as a long shot in the solidly GOP stronghold of northwest Cobb.
Although Ms. Goreham is viewed as the homeowners’ champion on the Cobb Commission, one of her hosts for her Thursday kickoff is well known developer John Williams of Buckhead, who also helped host her kick off four years ago. Other hosts this year are Dr. Stan Dysart, a Pinnacle orthopedic surgeon, and his wife Marcy; Tony and Pam Britton and Skip and Laurie Chesshire.
One reason local politicos believe Ms. Goreham won’t be touched by the anti-incumbent vote is that she is still perceived as favoring homeowners and low densities over developers and higher densities, just as she did during her first race in 2002.
As one supporter said of the feisty commissioner, “Helen is proof that if you go home from the dance with the gal who brung you, you don’t get into no trouble.”
Atrocious grammar yes, but a political truth too many politicians forget after Election Day.
MARIETTA HIGH SCHOOL’S ALUMNI SOCIETY has selected former Mayor Bill Dunaway as its 2010 Distinguished Alumnus. Dunaway graduated from the high school in 1957, and last year chose not to seek a third term as mayor.
“We congratulate Bill on this well deserved recognition. His active support of the Marietta City Schools system, and his commitment to the community as the former Mayor of the City of Marietta and as a citizen leader demonstrate that he is worthy of this honor,” said Neil Barfield, MSF Executive Director.
Dunaway was chosen for the award by a committee of the Alumni Society. He will receive the award at the Marietta Schools Foundation Gala on May 5 at the Earl Smith Strand Theatre.
POLITICAL PATTER: A fundraiser for educator Roger Hines is Tuesday from 5 to 7 p.m. at the Strand Theatre at 117 North Park Square in Marietta. Suggested contribution is $100. RSVP to wingr@bellsouth.net. Go to voterogerhines.com. … The Cobb County Republican Women’s Club will have its April General Membership meeting on April 23 from 11:30 a.m. to 1 p.m. at the Hilton/Marietta Conference Center, 500 Powder Springs Street in Marietta. A hot and cold buffet and dessert is $22 for members and $27 for guests. Guest speakers will be the Georgia Gubernatorial candidates.
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The lawyer I know says the judges act more like kings than elected officials, and that the pay supplements they get are staggering.
And the courtrooms are dark half the time, since none of them work Fridays or after 3 p.m.
It has been 30 years since the electoral attitude adjustment, when Luther Hames and Howell Ravan were defeated.
cemc has been a great asset to cobb county (and other) communities for many years and has the best
employees (field workers) of any power company in the world.
customer for over 20 years