SOS Wins Ammo in Gunn Fight

Threatened with extinction by a series of legal blows, the Save Our Springs Alliance has finally got the monkey off its back. At least that's the way it looked Monday after a Travis Co. judge threw out a $300,000 judgment that drove the group into bankruptcy last year.

In her ruling, State District Judge Mar­gar­et Cooper declared the December 2004 judgment "void and of no force and effect." Attorney Phil Durst, representing SOS, argued for nullification of the judgment on grounds that the judge who assessed the penalty – visiting Judge Bill Bender of Seguin – was not qualified to hear a case the group brought against a municipal utility district created by developer Bill Gunn. Bender, SOS argued, was unqualified to preside at the trial because he had lost a Republican primary in 1998. Under state law, such circumstances can render a visiting judge ineligible if either party objects. SOS filed its objection to Bender at the start of the trial, but Bender overruled the group and, after ruling for Gunn, ordered SOS to pay his six-figure attorney fees. SOS learned only recently that Bender had lost his primary election and sued last month to have the judgment overturned.

Gunn, meanwhile, is expected to appeal the Sept. 8 upset. It's uncertain what effect the ruling will have on his standing as a creditor in SOS' bankruptcy case. He has spent the last three years trying to squeeze SOS at every turn, trailing the group to bankruptcy court, where it thus far has been unsuccessful in seeking protection from creditors. If Gunn loses his appeal of this week's ruling, it's possible he could also lose his standing as a creditor in the bankruptcy case. Should that happen, SOS may just manage to tunnel its way out of bankruptcy court.