Posted on August 21, 2024
Sacramento County has paid $78.5 million in settlements to two gravel mining families that allege the county forced them out of business years ago.
It was the largest county settlement since it paid $98 million to UC Davis Health in 2017. The $78 million settlement required the Sacramento Board of Supervisors’ approval, which they gave at their Oct. 24, 2023 meeting. The settlement was part of the public record on the board’s agenda. The Sacramento Bee learned of the settlement agreements from a California Public Records Act request.
The county declined comment on the settlements, said county spokeswoman Kim Nava.
The settlements end a longstanding legal battle.
Joe and Yvette Hardesty leased a mine in the Sloughouse area, in Southeast Sacramento County, from Jay Schneider’s family ranching operation. In 1994 a letter from the county recognized the mine had a vested right under the Surface Mining and Reclamation Act, the settlement agreement stated. But then in 2010, the county sent violation notices to the owners contending it had expanded beyond its vested right.
Hardesty and Schneider sued the county in 2010 and 2012, respectively, and Chief U.S. District Judge Kimberly J. Mueller consolidated the cases. The suits alleged the county had taken steps to close the mine in order to benefit “politically influential” competitor Teichert. In 2017, a jury verdict awarded a whopping $107 million to the two families.
The county appealed the verdict, paying about $430,000 to post bonds to do so, said Nava.
In the end, the county paid $78.5 million to settle the case, including $20 million to Schneider and $58.5 million to Hardesty.
