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California Court Dismisses Southern Union Action

September 27, 1999 at 12:00 AM EDT

LAS VEGAS, Sept. 27 /PRNewswire/ -- A California Superior Court Judge in San Diego County has dismissed a lawsuit filed against Southwest Gas Corporation (NYSE: SWX) by Southern Union Company (NYSE: SUG), Southwest Gas said.

In an order issued Friday, September 24, California Superior Court Judge Ronald S. Prager dismissed the lawsuit because Southern Union's allegations in the California state court case duplicated claims brought in pending lawsuits in the Federal court system in Nevada and Arizona.

"Southern Union has pursued a strategy of filing high-profile but baseless claims in nearly every available courthouse," said Thomas Sheets, vice president and general counsel of Southwest Gas. "The fact remains that Southern Union is nothing more than a spurned suitor. This decision is a sensible step in the direction of resolution of all of Southern Union's groundless claims on terms favorable to Southwest Gas shareholders and customers."

The judge found that Southern Union is proceeding with discovery of evidence in an existing lawsuit, and that Southern Union has presented no valid argument as to why it cannot obtain the discovery it needs in a pending Nevada action as well.

The Court dismissed the California case without prejudice, which means that Southern Union may re-file this case upon the resolution or termination of a federal action in the unlikely event that the federal actions do not dispose of all the claims asserted in the California action.
SOURCE Southwest Gas Corporation
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CONTACT: Investor: Laura Hobbs of Southwest Gas Corporation, 702-876-7237; or Media: Lew Phelps of Sitrick and Company, 310-788-2850, for Southwest Gas Corporation