A court hearing by telephone on Friday resulted in the Judge denying Mammoth's motion for a new trial in the Hot Creek case. The jury in that case had returned a guilty verdict, which accused the Town of breach of contract and awarded Hot Creek $30 million in damages. Now, the Town goes through the steps toward an appeal.

The Town's attorneys say that Judge Roger Randall improperly instructed the jury on a key point about the Town's obligations. The Town also says that Hot Creek failed to exhaust administrative remedies and went to trial prematurely. Those contentions will end up in an appeal.

Judge Randall denied all of the Town's motions with the move for a new trial primary among them. Town Manager Rob Clark said that the matters in court helped lay the groundwork for the appeal which will be filed later this month.

The Town's attorneys argue that delays in the Hot Creek project were caused by the FAA requirements at the airport. The Judge seemed to think the delays were the Town's problem.

Also pending, a claim filed by the Town with its insurance company to cover the $30 million damage award. Now damages will be paid as long as an appeal is pending.

Both sides had earlier indicated there may be settlement talks afoot, but neither side has been willing to comment lately.