S.F. Chamber of Commerce drops lawsuit

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By Bob Quick The New Mexican |
December 20, 2005



The Santa Fe Chamber of Commerce will not take its lawsuit opposing Santa Fe’s minimum wage to the state Supreme Court.

“The chamber decided not to petition the New Mexico Supreme Court,” Simon Brackley, interim president of the Santa Fe Chamber of Commerce, said Monday. “My sense is the other plaintiffs feel the same way.”

The chamber has been the lead plaintiff in the lawsuit, and its decision apparently brings to an end litigation that was initiated in March 2003, when business groups filed suit against the minimum-wage ordinance that had been passed by the City Council in late February of that year. The ordinance has been in effect since June 24, 2004.

One of the other plaintiffs, Robbie Day, owner of the San Francisco Street Bar and Grill and Santa Fe Bar and Grill, said, “We talked about (the lawsuit), and nobody is in any position to do anything further unless somebody comes up and helps finance it. I don’t see anybody in our group who would be able to afford an appeal to the Supreme Court. … We’re kind of beat up financially .

The other plaintiffs in the lawsuit were New Mexicans for Free Enterprise; Santa Fe Hotel Joint Ventures, the former holding company for the Hilton of Santa Fe; Rick Post, the former owner of Pranzo; and Zuma Corp., the parent company of Zia Diner.

Brackley said the “( lack of) chances for success combined with the stress that the plaintiffs have gone through have reduced their taste for further legal action.”

Last week, the City Council decided to allow the minimum wage to rise to $9.50 Jan. 1, as stipulated by the ordinance. City Councilor David Pfeffer and businesses wanted to keep the wage at $8.50 until a complete study of the wage’s impact on the economy becomes available in May 2006.

The only other legal action threatening the minimum-wage ordinance is a lawsuit filed Dec. 5 by Heritage Home Healthcare in federal court in Albuquerque.

Paul Sonn, an attorney with the Brennan Center for Social Justice at New York University, which assisted the city in its court battle to implement the minimum-wage ordinance, said the city has not yet been served legal papers in that suit, making it uncertain whether that legal action will go ahead or not.

Sonn also said Heritage’s federal suit repeats claims that already have been rejected in state court.

Sonn called the chamber’s decision to drop the lawsuit “great news. The chamber deserves credit for recognizing that the living wage is legally sound.

We are looking forward to working with them to help build a strong economy for all Santa Fe residents.”

Carol Oppenheimer of the Santa Fe Living Wage Network , a nonprofit group that champions the wage, said the chamber’s decision not to proceed with litigation “relieves the stress for us, too.”

She recalled that at last week’s City Council meeting to consider postponing the wage increase to $9.50, 76 residents spoke in favor of increasing the wage while only five spoke against it.

“That shows that support has shifted strongly in favor of the living wage,” she said. “Now it’s time to move on together.”

Now that the wage is in place, “we need to make sure businesses are complying with the $9.50 wage and educate workers what their remedies are if employers are not following the law,” she said. “There are some who are not following the law. We’re very concerned about getting that worked out.”

City Councilor David Coss, a proponent of the wage and a candidate for mayor, said it was “wonderful news’’ that the litigation opposing the minimum wage was over.

“I’m very pleased the chamber has dropped the lawsuit, and I think with that step we need to redouble our efforts to make our economic-development strategy work for families and business owners,” he said. Coss also said he’s in favor of implementing a suggestion by City Councilor Carol Robertson Lopez calling for the city to be more business friendly. Contact Bob Quick at 986-3011 or bobquick@sfnewmexican .com.

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