WizardOfAz

Impeachment of Irvin pushed

Utility commission wants House to do 'right thing'

Robbie Sherwood
The Arizona Republic
Mar. 19, 2003 12:00 AM

With embattled Arizona Corporation Commissioner Jim Irvin digging in and refusing to resign, his four colleagues are now asking the Legislature to investigate and consider impeachment.

Citing a "pattern of misconduct" that has undermined the public's confidence in the commission, Irvin's colleagues asked for his resignation on Tuesday at the state Capitol. But with no authority to make him quit, they said the state House of Representatives would have to take the next step.

"I now believe the interests of Arizona ratepayers are at greater risk from Commissioner Irvin's continued presence on the commission than from my decision to speak out today," said commission Chairman Mark Spitzer. "This commission holds those it regulates to the highest ethical standards, and we must be held to those same standards. Commissioner Irvin has failed that test, and for the sake of good government, he needs to resign."

Spitzer and Commissioner Mike Gleason both stopped short of urging the Legislature to impeach Irvin, saying they were confident lawmakers "would do the right thing." But Commissioners Bill Mundell and Jeff Hatch-Miller both strongly urged lawmakers to act.

House Speaker Jake Flake, who would have to initiate the impeachment process, said he would look carefully at the allegations against Irvin. Though troubled by the $60 million civil judgment against Irvin, Flake was not yet committed to an expensive impeachment trial.

"We're not going to shrink from our responsibility, but we're going to proceed cautiously," said Flake, R-Snowflake.

Irvin shot back at his colleagues on Tuesday afternoon with a statement saying he would not step down and criticizing Spitzer and the others for not allowing him a public hearing to defend himself.

"I have not been accused of nor have I committed any crime," Irvin said. "If I exercised poor judgment in any matter before the commission, I am sorry. However, I would not expect Mr. Spitzer or the other two former legislators on the commission to resign because of their arguably poor judgment in voting in favor of alternative fuels (state-funded discounts for alternative-fuel vehicles), which cost the state hundreds of millions of dollars."

Gov. Janet Napolitano joined the chorus Tuesday asking Irvin to resign.

"I think to spend the kind of money we are defending his various actions is, quite frankly, outrageous," Napolitano said. "I would hope that the legislative leadership is considering the Corporation Commission's suggestion (regarding impeachment) with all seriousness."

Irvin has been a lightning rod since a federal jury ordered him last year to pay $60 million in damages for improperly tampering with a planned $1 billion acquisition of Southwest Gas Corp. in 1999. Despite the trial hanging over him, he won re-election in November.

The U.S. Attorney's Office is looking into a possible criminal investigation of Irvin's actions in the Southwest Gas case but has made no decision. A spokesman for the office said Tuesday the matter was "still under review."

More recently, an informal commission inquiry last month indicated Irvin might have been improperly involved with a disciplinary case brought by the commission's securities division. But neither the commission's legal division nor Attorney General Terry Goddard were willing to investigate.

Nevertheless, Spitzer, Mundell and Gleason said they had had enough. They met privately with Irvin last week to ask him to resign. Instead of quitting, Irvin had his legal team press Spitzer not to comment publicly until all his legal appeals had been exhausted. His attorneys also suggested that commissioners should have voiced their views in a public meeting, not behind closed doors.

Spitzer said the commission faces important rate hearings with both Qwest and APS and cannot spare the time on a matter where they have no authority.

In all, taxpayers have spent more than $4 million defending Irvin in court. An impeachment would easily cost more than $1 million.




http://www.cc.state.az.us/

WizardOfAz

Irvin libel settlement costs state $441,000

Jim Irvin recently hired a high-powered law firm and a public relations firm at his own expense to deal with any fallout from his legal troubles.

But plaintiff puts total at $621,000

Max Jarman
The Arizona Republic
May. 2, 2003 12:00 AM


The state has settled a lawsuit that further increases its financial losses stemming from Corporation Commissioner Jim Irvin's actions at the agency.

State officials revealed Thursday that Arizona this week settled a claim brought by a former commission employee who said Irvin libeled him during a dispute at the agency in 1999.

According to Frank Hinds, Arizona's risk manager, the state agreed to pay $441,000 to settle the case, including $227,000 to Irvin's lawyers, $14,000 in miscellaneous expenses, and $200,000 to the plaintiff, Jim Fisher, who was an aide to former Commissioner Tony West at the time.

But Fisher, who now works in the utilities division, said his share is more than $380,000, which would bring the total to about $621,000.

It was the second risk-management payout generated by Irvin this year.

Scott Smith, a spokesman for the Arizona Department of Administration, said the agency also has paid $4.6 million in legal bills so far to defend Irvin in a business interference suit by Houston-based Southern Union Co. The case resulted in a $60 million jury judgment against Irvin that he has appealed; the state is paying the costs of the appeal.

Smith said the payments may be the largest ever made from the state's indemnity fund, which covers legal fees and judgments for public officials sued for actions related to their duties.

"It's very unusual for us to make payments like this as a result of an elected official's behavior," Smith said.

Irvin issued a written statement: "I support the state's decision to settle this claim under its statutory authority. I am committed to putting this episode behind us, and I will work with Mr. Fisher in our official capacities in the best interests of the citizens of Arizona."

Irvin recently hired a high-powered law firm and a public relations firm at his own expense to deal with any fallout from his legal troubles.

Arizona Corporation Commission Chairman Marc Spitzer, who has called for Irvin to resign because of the judgments, said the cases "unfortunately test the limit of indemnification provisions for elected officials."

"At some point you'd think they'd test the limit of the Legislature," he added.

Spitzer and the three other commissioners have asked the Legislature to begin impeachment proceedings against Irvin, saying they lack authority to remove him from office. But Spitzer said the Legislature is preoccupied with the budget and hasn't taken any action.

Speaker of the House Jake Flake was unavailable for comment on the matter Thursday.

Fisher, whom Irving criticized in a press release in 1999 that triggered the lawsuit, said he feels vindicated by the settlement and by the jury award in the Southern Union case.

"It's been hell," he said of the three-year legal battle.

Fisher sued Irvin in 2000 after the commissioner issued a press release in response to being sued by Southern Union, which claimed Irvin improperly tried to steer the sale of Southwest Gas to Oneok Inc. Fisher had provided Southern Union, a rival bidder for Southwest Gas, with an affidavit of Irvin's actions in behalf of Oneok.

Irvin's release said that Fisher had a "history of wrongdoing at the commission" and that his "past actions cast serious doubt on his credibility as a witness for Southern (Union)."

Fisher said the remark ruined his reputation.

http://www.azcentral.com/news/articles/0502irvin02.html