Feinstein feud heads south

From: POLITICO California Playbook - Friday Aug 18,2023 01:03 pm
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POLITICO California Playbook

By Dustin Gardiner, Lara Korte and Sejal Govindarao

Presented by Southern California Edison

Senator Dianne Feinstein walking to her seat for a Senate Judiciary Committee meeting on Capitol Hill.

Senator Dianne Feinstein walking to her seat for a Senate Judiciary Committee meeting on Capitol Hill. | Francis Chung/POLITICO

DRIVING THE DAY: Once a mayor, always a mayor. Gov. Gavin Newsom left San Francisco City Hall more than a decade ago, but he’s immersed himself in the city’s struggles — the homelessness crisis, fentanyl-overdose deaths and downtown’s economic slump.

Newsom has acted as the city’s chief defender against conservative media attacks while simultaneously chiding local leaders over their dysfunction — all with the understanding that his own future is tied to its turnaround. Read more on the governor’s brotherly relationship with the City by the Bay from our colleagues Chris Cadelago and Melanie Mason.

 

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THE BUZZ — The bitter family drama over Sen. Dianne Feinstein’s finances is poised to play out in a courtroom more than 230 miles from her hometown of San Francisco.

Katherine Feinstein, the senator’s daughter, has filed a series of lawsuits in recent months on behalf of her mother alleging wrongdoing by the managers of the trust left behind by her late stepfather, financier Richard Blum.

The spat is now expected to be presided over by a San Luis Obispo County judge after the San Francisco Superior Court recused itself from the two initial cases.

Court filings don’t elaborate on the rationale for moving the case, though it isn’t hard to surmise: Katherine Feinstein is a retired San Francisco Superior Court judge. She served more than 12 years on the bench including a stint as presiding judge before retiring in 2014.

Even if the recusal comes as little surprise, it highlights the uncomfortable nature of the accusations surrounding Feinstein’s estate. The situation has exacerbated questions about the senator’s fitness for public office amid concerns about her memory issues and her recovery following a bout of shingles that sidelined her for nearly three months.

Katherine Feinstein has been given a “limited durable power of attorney” over her 90-year-old mother’s legal affairs, according to court filings, even as the elder Feinstein continues to serve as California’s senior senator. Katherine has bitterly clashed with Blum’s three daughters over the operation of a joint marital trust and other trusts created by their investment banker father.

At the heart of the dispute: Katherine Feinstein alleges trustees have blocked efforts to sell a Stinson Beach home owned by the couple, decreased distributions to her mother and declined to pay the senator’s extensive medical expenses. Katherine Feinstein has accused the trustees of “elder abuse” and attempting to increase her stepsisters’ inheritance when her mother dies.

An attorney representing the trustees, Steven Braccini, has responded by calling Katherine Feinstein’s accusations “unconscionable.” The elder Feinstein is independently wealthy, and Braccini says the dispute is driven by Katherine Feinstein’s greed, not her mother’s needs.

Retired San Luis Obispo County Superior Court Judge Roger Picquet will preside over two initial cases related to Feinstein’s finances, including over the beach house and trust disbursements.

The third and latest lawsuit, alleging elder abuse and seeking to remove the trustees, hasn’t yet been referred to Picquet. All three cases are likely to be merged, as is typical with complex estate fights.

 

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HAPPY THURSDAY. Thanks for waking up with Playbook. 

PLAYBOOK TIP LINE — What are you keeping an eye on? What do you expect to be the fight of the next few weeks in the California legislature? Let us know.

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WHERE’S GAVIN? Nothing official announced.

FRESH INK

Christy Smith speaks at a march for reproductive rights.

Christy Smith speaks during a march for reproductive rights on Oct. 2, 2021 in Los Angeles, Calif. Smith announced Thursday she would take over as head of Emerge California. | Amy Sussman/Getty Images

MAKING MOVES — Former Assemblymember Christy Smith never quite made it to Congress. Now she’ll help other ambitious California women achieve their elective dreams.

Emerge California announced yesterday that Smith would be its new executive director, succeeding Emerge alum and interim former Oakland Mayor Libby Schaaf as head of an organization devoted to identifying and supporting Democratic women running for office in California.

In a press release announcing the move, Emerge California Board of Directors Chair Rhodesia Ransom touted Smith’s “experience running for office at the local, state, and federal office levels.”

Smith is certainly a campaign trail veteran. After flipping a red Assembly district in 2016, she’s run three times for a competitive Los Angeles House seat and lost three times to Rep. Mike Garcia, including in a 333-vote nailbiter in 2020. She’s blamed national Democrats for insufficient support. Jeremy B. White

 

GROWING IN THE GOLDEN STATE: POLITICO California is growing, reinforcing our role as the indispensable insider source for reporting on politics, policy and power. From the corridors of power in Sacramento and Los Angeles to the players and innovation hubs in Silicon Valley, we're your go-to for navigating the political landscape across the state. Exclusive scoops, essential daily newsletters, unmatched policy reporting and insights — POLITICO California is your key to unlocking Golden State politics. LEARN MORE.

 
 


KEY CONTEST — San Ramon Councilmember Marisol Rubio launched a campaign Thursday for Senate District 9, setting up a challenge with Democratic Assemblymember Tim Grayson.  

The region is currently represented by state Sen. Steve Glazer, who is bumping up against term limits and considering a run for Grayson’s Assembly seat in the next cycle.

WHAT WE'RE READING TODAY

“As one more housing project stalls on noise concerns, another head sprouts from ‘CEQA Hydra,’” by CalMatters’ Mikhail Zinshteyn and Ben Christopher: “Two different state courts have ruled recently that the human noise created by future tenants in housing projects are a form of pollution that cities must address. Lawmakers and the governor are working to reverse that novel interpretation of environmental law.”

“Despite concerns from legal experts, Gavin Newsom pushes forward with gun control amendment,” by the San Francisco Chronicle’s Sophia Bollag: “Some liberals have publicly criticized Newsom’s plan over concern it could open the Constitution to amendments from conservatives on other issues such as abortion and LGBTQ rights. Newsom said he’s heard those concerns, but that he disagrees.”

“In the LA Mansion Market, Steep Discounts Are the New Normal,” by Bloomberg’s James Tarmy: “Los Angeles is reeling from successive waves of labor strikes and budget shortfalls. Now, even the city’s rich are feeling the pinch: Its ultra-luxury housing market is subject to deep discounts, brokers say.”

 

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Playbookers

TRANSITIONS — Liya Rechtman is now policy adviser at the Department of Transportation focused on transportation sector mitigation, land use, housing and modeling tools. She most recently was climate policy advisor for the California State Transportation Agency.

Jennifer Lee is now a partner at Jenner & Block focusing on investigations, compliance and defense in San Francisco. She most recently was an assistant regional director at the SEC.

Newsom appointed Katie Albright chair of the California Children and Families Commission, also known as First 5 California.

Michael Rauber is now comms director for Rep. Kevin Kiley (R-Calif.). He most recently was deputy comms director for Rep. Brad Wenstrup (R-Ohio).

BIRTHDAYS — (was Thursday): Jon Lovett of Crooked Media … Jessica Gail … Jamie Gillespie of House Speaker Kevin McCarthy’s office … Amanda Matti … Mike Davis … Andrew Pratt … Kensey Johnson … Larry Ellison … Mickey Drexler ... Barry Moskowitz ... Aaron Taxy

 

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