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City of Calimesa v. Everest Reinsurance Company — 9th Cir. (Aug 6, 2026)

No. 25-7356 Argued August 6, 2026 Published August 7, 2026; updated August 22, 2026

The Ninth Circuit hears an immediate appeal in a contract dispute between the City of Calimesa and Everest Reinsurance. The city is suing to enforce performance bonds tied to public improvements for a commercial development. Everest says related agreements violate California Government Code section 1090's ban on financial conflicts and may be avoided under section 1092. The question is which deadline controls: section 1092's four years from discovery, or ninety days for challenges to development and subdivision decisions under sections 65009 and 66499.37. Darren Grzyb of Chiesa Shahinian and Giantomasi will argue for Everest that the statutes can be reconciled or should go to the California Supreme Court. Steven Nguy of Richards, Watson and Gershon will argue for the city that the ninety-day land-use limits are more specific and bar the counterclaims.

City of Calimesa v. Everest Reinsurance Company (No. 25-7356) — U.S. Court of Appeals for the Ninth Circuit, argued August 6, 2026.

Sources
Argument audio — U.S. Court of Appeals for the Ninth Circuit (public domain, 17 U.S.C. § 105):https://cdn.ca9.uscourts.gov/datastore/media/2026/08/06/25-7356.mp3
Argument listing — U.S. Court of Appeals for the Ninth Circuit:https://www.ca9.uscourts.gov/cases/streams-videos/archive?case=25-7356&hearingDate=2026-08-06
Current appellate docket — PACER entries mirrored by Justia:https://dockets.justia.com/docket/circuit-courts/ca9/25-7356
Calimesa project and performance-bond facts — California FPPC:https://lunar.fppc.ca.gov/content/dam/fppc/documents/advice-letters/2025/25102.pdf
California Government Code § 1090:https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV&sectionNum=1090.
California Government Code § 1092:https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV&sectionNum=1092.
California Government Code § 65009:https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV&sectionNum=65009.
California Government Code § 66499.37:https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV&sectionNum=66499.37.
Darren Grzyb — CSG Law:https://www.csglaw.com/people/darren-grzyb/
Steven Nguy — Richards, Watson & Gershon:https://www.rwglaw.com/practices-municipal-public-agency-law
Steven Nguy firm corroboration — official Ninth Circuit opinion:https://www.govinfo.gov/content/pkg/USCOURTS-ca9-17-17144/pdf/USCOURTS-ca9-17-17144-0.pdf
Published-opinion search — Ninth Circuit:https://www.ca9.uscourts.gov/opinions/
Memorandum-disposition search — Ninth Circuit:https://www.ca9.uscourts.gov/decisions/memoranda/

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