Epstein v. Schwarzenegger CA1/4
In 2010, on the heels of the great recession, the State faced an enormous budget gap. To close that gap, in November 2010, the Department of General Services (DGS) entered into an agreement to sell eleven state-owned buildings, referred to as the Golden State Portfolio, to California First, L.P. (California First). The transaction was set to close in mid-December. The next day, Jerry B. Epstein and A. Redmond Doms sued Governor Schwarzenegger, DGS, and Ron Diedrich, the Acting Director of DGS (together, the State) to stop the sale of the Golden State Portfolio to California First or anyone else. Two months of intense litigation ensued, including a request for preliminary injunction and proceedings before the Sixth District Court of Appeal and our Supreme Court.
In the interim, Governor Jerry Brown assumed office. On February 9, 2011, he announced that the State would not sell the Golden State Portfolio and would close the budget shortfall through other means.
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