CLASS PLAINTIFFS v. CITY OF SEATTLE

Nos. 90-15380, 90-15451, 90-15453, 90-16383 and 90-16446.

955 F.2d 1268 (1992)

CLASS PLAINTIFFS; Chemical Bank, in its representative capacity as Trustee for Bondholders, Plaintiffs-Appellees, v. CITY OF SEATTLE; Public Utility District No. 1 of Ferry County, Washington; Public Utility District No. 1 of Kittitas County, Washington; Oregon Public Entities, Benton Rural Electric Association, Washington; Small Utilities Group, Alder Mutual Light Company; City of Blaine, Washington, City of Sumas, Washington; Orcas Power & Light Company, Washington; Public Utility District No. 1 of Pend Oreille County, Washington; Washington Public Utilities Group; Public Utility District No. 1 of Mason County; Town of Steilacoom; Chelan County Public Utility District, Douglas County Public Utility District; Grant County Public Utility District; Public Utility District No. 1 of Clallam County; City of Richland; Public Utility District No. 1 of Franklin County; Public Utility District No. 1 of Snohomish County; Columbia Defendants, Central Electric Cooperative, Inc.; Wood Dawson Smith & Hellman; Washington Public Power Supply System; R.W. Beck and Associates, Ebasco Services Incorporated; United Engineers & Constructors, Inc.; Director Defendants, Participants' Committee Defendants; Public Utility District No. 1, of Klickitat County; United States of America, on Behalf of Itself and its Agency, the Bonneville Power Administration; State of Washington; Blyth Eastman Paine Webber Incorporated, Defendants-Appellees, Bernard A. Heerey, et al., Applicants in intervention Appellants. CLASS PLAINTIFFS; Chemical Bank, in its representative capacity as Trustee for Bondholders, Plaintiffs-Appellees, v. CITY OF SEATTLE; Public Utility District No. 1 of Ferry County, Washington; Public Utility District No. 1 of Kittitas County, Washington; Oregon Public Entities, Benton Rural Electric Association, Washington; Small Utilities Group, Alder Mutual Light Company; City of Blaine, Washington, City of Sumas, Washington; Orcas Power & Light Company, Washington; Public Utility District No. 1 of Pend Oreille County, Washington; Washington Public Utilities Group; Public Utility District No. 1 of Mason County; Town of Steilacoom; Chelan County Public Utility District, Douglas County Public Utility District; Grant County Public Utility District; Public Utility District No. 1 of Clallam County; City of Richland; Public Utility District No. 1 of Franklin County; Public Utility District No. 1 of Snohomish County; Columbia Defendants, Central Electric Cooperative, Inc.; Wood Dawson Smith & Hellman; Washington Public Power Supply System; R.W. Beck and Associates, Ebasco Services Incorporated; United Engineers & Constructors, Inc.; Director Defendants, Participants' Committee Defendants; Public Utility District No. 1, of Klickitat County; United States of America, On Behalf of Itself and its Agency, the Bonneville Power Administration; State of Washington; Blyth Eastman Paine Webber Incorporated, Defendants-Appellees, Bernard A. Heerey, et al., Applicants in intervention Appellants. CLASS PLAINTIFFS; Chemical Bank, in its representative capacity as Trustee for Bondholders, Plaintiffs-Appellees, v. CITY OF SEATTLE; Public Utility District No. 1 of Ferry County, Washington; Public Utility District No. 1 of Kittitas County, Washington; Oregon Public Entities, Benton Rural Electric Association, Washington; Small Utilities Group, Alder Mutual Light Company; City of Blaine, Washington, City of Sumas, Washington; Orcas Power & Light Company, Washington; Public Utility District No. 1 of Pend Oreille County, Washington; Washington Public Utilities Group; Public Utility District No. 1 of Mason County; Town of Steilacoom; Chelan County Public Utility District, Douglas County Public Utility District; Grant County Public Utility District; Public Utility District No. 1 of Clallam County; City of Richland; Public Utility District No. 1 of Franklin County; Public Utility District No. 1 of Snohomish County; Columbia Defendants, Central Electric Cooperative, Inc.; Wood Dawson Smith & Hellman; Washington Public Power Supply System; R.W. Beck and Associates, Ebasco Services Incorporated; United Engineers & Constructors, Inc.; Director Defendants, Participants' Committee Defendants; Public Utility District No. 1, of Klickitat County; United States of America, On Behalf of Itself and its Agency, the Bonneville Power Administration; State of Washington; City of McMinnville, Oregon; City of Drain, Oregon; Alan H. Jones; Blyth Eastman Paine Webber Incorporated, Defendants-Appellees, C. Richard Lehmann, Applicant in intervention Appellant. CLASS PLAINTIFFS; Chemical Bank in its representative capacity as Trustee for Bondholders, Plaintiffs-Appellees, Arthur Hoffer, L.T. Samuels; Norman Benson; John Joseph; Eugene L. Lentzner; Ann Lentzner as Co-Trustees of the Eugene Lentzner and Ann Lentzner Living Trust, Plaintiffs-Appellants, v. CITY OF SEATTLE; Public Utility District No. 1 of Ferry County, Washington; Public Utility District No. 1 of Kittitas County, Washington; Oregon Public Entities, Benton Rural Electric Association, Washington; Small Utilities Group, Alder Mutual Light Company; City of Blaine, Washington, City of Sumas, Washington; Orcas Power & Light Company, Washington; Public Utility District No. 1 of Pend Oreille County, Washington; Washington Public Utilities Group; Public Utility District No. 1 of Mason County; Town of Steilacoom; Chelan County Public Utility District, Douglas County Public Utility District; Grant County Public Utility District; Public Utility District No. 1 of Clallam County; City of Richland; Public Utility District No. 1 of Franklin County; Public Utility District No. 1 of Snohomish County; Columbia Defendants, Central Electric Cooperative, Inc.; Wood Dawson Smith & Hellman; Washington Public Power Supply System; R.W. Beck and Associates, Ebasco Services Incorporated; United Engineers & Constructors, Inc.; Director Defendants, Participants' Committee Defendants; Public Utility District No. 1, of Klickitat County; United States of America, on Behalf of Itself and its Agency, the Bonneville Power Administration; State of Washington; City of McMinnville, Oregon; City of Drain, Oregon; Alan H. Jones; Blyth Eastman Paine Webber Incorporated, Defendants-Appellees, CLASS PLAINTIFFS; Chemical Bank, in its representative capacity as Trustee for Bondholders, Plaintiffs-Appellees, v. CITY OF SEATTLE; Public Utility District No. 1, Defendants, Bernard A. Heerey, Applicant in intervention Appellant. CLASS PLAINTIFFS; Chemical Bank, in its representative capacity as Trustee for Bondholders, Plaintiffs-Appellees, v. CITY OF SEATTLE; Public Utility District No. 1, Defendants, C. Richard Lehmann, Applicant in intervention Appellant.

United States Court of Appeals, Ninth Circuit.

Decided February 4, 1992.


Attorney(s) appearing for the Case

Charles S. Webb, III, Berger & Steingut, New York City, Jose Gaitan, Gaitan & Kusack, Seattle, Wash., for plaintiffs-appellants.

Albert R. Malanca, Gordon, Thomas, Honeywell, Malanca, Peterson & Daheim, Tacoma, Wash., Daniel Murdock, Donovan, Leisure, Newton & Irvine, New York City, Ralph K. Nickerson, Goldendale, Wash., Rockne Gill, Schwabe, Williamson & Wyatt, R. Erick Johnson, Bullivant, Houser, Bailey, Pendergrass & Hoffman, Peter R. Mersereau, Rankin, VavRosky, Doherty, MacColl & Mersereau, Portland, Or., Dwight A. Halstead, Prosser, Wash., Steven J. Palmer, Flynn, Merriman & Palmer, Kennewick, Wash., Malcolm S. Harris, Harris, Orr & Wakayama, Seattle, Wash., J. Christopher Kohn, U.S. Dept. of Justice, Commercial Litigation Branch, Washington, D.C., David A. Bennett, Bennett & Bigelow, Seattle, Wash., Ralph G. Wellington, Schnader, Harrison, Segal & Lewis, Philadelphia, Peter J. Nickels, Covington & Burling, Washington, D.C., Otto G. Klein, Heller, Ehram, White & McAuliffe, Roy J. Moceri, Reed, McClure, Moceri, Thonn & Moriarty, Seattle, Wash., James J. Hagan, Simpson, Thacher & Bartlett, New York City, Jerry B. Edmond, William, Kastner & Gibbs, Seattle, Wash., David F. Jurca, Helsell, Fetterman, Martin, Todd & Hokanson, Seattle, Wash., Everett B. Clary, O'Melveny & Myers, G. Edward Fitzgerald, Gibson, Dunn & Crutcher, Los Angeles, Cal., John D. Lowery, Riddell, Williams, Bullitt & Walkinshaw, Seattle, Wash., for defendants-appellees.

Edward A. Grossmann, Bernstein Litowitz Berger & Grossmann, New York City; Melvyn I. Weiss, Milberg Weiss Bershad Specthrie & Lerach, New York City; Michael J. Meehan, Molloy, Jones & Donahue, Tucson, Ariz., Robert H. Baron and Richard W. Clary, Cravath, Swaine & Moore; Harold R. Tyler, Jr., Patterson, Belknap, Webb & Tyler, New York City, for plaintiffs-appellees.

Robert M. Sedgwick, Holtzmann, Wise & Shepard, New York City, C. Richard Lehmann, Miami Lakes, Fla., for applicants in intervention appellants.

Before WALLACE, Chief Judge, BRUNETTI and LEAVY, Circuit Judges.


LEAVY, Circuit Judge:

These consolidated appeals involve challenges to the district court's approval of settlement agreements and a plan of allocation in securities litigation. The case arose out of the nation's largest bond default, the 1983 default on $2.25 billion in revenue bonds issued in order to finance the construction of two nuclear power plants in the State of Washington that were never completed. For the following reasons, we affirm the district court's...

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