City Settles on Rehab Home Regulation Suit

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The city and a community group have settled a lawsuit related to the regulation of Morningside Recovery, LLC, according to a statement released Monday.

According to Orange County Superior Court records, a writ of mandate was filed in February 2011 by Maintain Our Residential Neighborhoods against Newport Beach regarding city’s 2010 approval of the zoning implementation and public benefit agreement with Morningside.

“After much consideration of this matter, both MORN and the city have come to the conclusion that it is in everyone’s best interest to move forward in the spirit of collaboration,” a joint statement from both groups reads.

The two groups came to a $60,000 settlement, which ends years of discussion and legal battles.

After MORN took legal action in early 2011, the city council voted unanimously in July that year to terminate its zoning agreement with Morningside. The council acted after sending Morningside a warming letter in June about reported violations of the agreement.

Morningside filed a lawsuit against Newport Beach in September 2011, claiming the city’s decision to terminate their zoning agreement is invalid due to lack of proper evidence and defying California code and the agreement terms.

In June 2012, a judge ruled to uphold the city’s decision to terminate a zoning agreement with Morningside Recovery, clearing the way for a cross-complaint against the recovery home.

Earlier this year a judge ruled that Morningside had violated the city’s municipal code.

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