Holloway v. Showcase Realty Agents, Inc.

The San Lorenzo Valley Water District acquired real property in Boulder Creek, California from the Dildines. Holloway, a taxpayer within District, filed suit claiming the contract was void under Government Code section 1090, because one of District’s directors, Vierra, had an interest in the contract by nature of his partial ownership in Showcase Realty, which facilitated the property sale, and the fact that his wife was the listing agent for the property. The trial court dismissed on the ground that Holloway lacked standing to assert a claim for conflict of interest. The court of appeal reversed. Holloway has taxpayer standing under Code of Civil Procedure section 526a to challenge the contract and has standing under Government Code section 1092 to bring an action for conflict of interest. There is no challenge to District’s bonds, warrants or other evidence of indebtedness; Holloway was not required to bring a validation action under Water Code section 30066. View "Holloway v. Showcase Realty Agents, Inc." on Justia Law