Resident class-action lawsuit against La Plata Electric Association dismissed

A class-action lawsuit filed by several La Plata County residents against La Plata Electric Association (LPEA) was dismissed with prejudice by a Colorado district court judge. The plaintiffs, including David Peters, Audrey Sue McWilliams, and others, argued that LPEA's board of directors violated the co-op's bylaws by not allowing members to vote on the exit from Tri-State Generation and Transmission. They claimed the board's decision to accept a lump-sum payment for roughly $71 million in Tri-State's excess profit margins amounted to a sale of more than 10% of LPEA's total assets, which should have required a member vote under Article IX of the bylaws. However, Judge Brian Flynn ruled that the payment was not a 'disposal' of assets but rather a withdrawal of patronage capital at its present value. He stated that Article IX only requires a vote on the 'sale' of assets exceeding 10% of the co-op's value, not on other dispositions. Consequently, the plaintiffs' claim was found to be contrary to the plain language of the bylaw. The judge dismissed the case with prejudice, permanently barring the plaintiffs from filing the same complaint. The dispute reportedly cost LPEA over $100,000 in legal expenses, which will be paid by all members.

(Source：Durango Herald)