The Lathrop businessman who sued the city over the one-cent sales tax increase passed by voters in November of 2012 will have to pay $2,000 every month until he pays off the nearly $96,000 that the city incurred while fighting the lawsuit in court.
Dalwinder and Gardiv Dhoot – who operate Joe’s Travel Plaza on Harlan Road – were ordered by a judge to pay the entire amount that both the City of Lathrop and Mayor Sonny Dhaliwal, both in his elected position and as an individual who was named in the lawsuit, incurred in fighting the suit in San Joaquin Superior Court.
Dhoot, who in his legal motion claimed that the city was conspiring against him, made an impassioned plea to the council to get them to reconsider before taking the matter to court.
And he didn’t pull any punches in his court filing when it came to explaining what he thought was going on behind closed doors.
According to Dhoot, the city knowingly spent all of the available money that it had on hand in order to create a scenario in which a sales-tax increase was the only valid option to avoid a budget shortfall situation.
In an open council meeting, Dhoot and his affiliated questioned not only the city’s spending and accused them of creating a fake need to necessitate the sales-tax increase, but also attacked the finances of the Lathrop Manteca Fire District and incorrectly stated that they had massive reserves and didn’t need the handshake agreement to 40 percent of the proceeds of the general tax that would help pay for personnel and equipment necessary to serve the growing community.
“Mayor Dhaliwal and City Manager Salvator (Sic) were aware of excessive and wasteful city spending and thus crafted a measure to increase a 1 percent business sales tax (Measure ‘C’),” the lawsuit said. “‘Mayor Dhaliwal,’ ‘City Manager Salvator (Sic)’ and several other powerful individuals, both within and outside the City of Lathrop, have conspired to effectuate the Defendants claim to eliminate ‘Dhoot’ from conducting any business in the City of Lathrop by imposing the 1 percent sales tax increase – ‘Measure C’ – by targeting ‘Dhoot’ by threats and making it difficult for ‘Dhoot’ to stay in business for the City of Lathrop.”
Judge Barbara Kronlund upheld a tentative ruling from early last year to finalize the matter, and referred to the amended complaint that was filed after the tentative ruling as a “SLAPP suit” – a strategic lawsuit against public participation that is used to intimidate or censor a person by sticking them with the cost of the defense as a strategy to try an grind out a favorable decision.
Dhoot remains active in local politics, and has so far this campaign cycle donated $5,000 to the mayoral campaign of Stephen Macias, who is challenging Mayor Sonny Dhaliwal for his seat. Dhwaliwal was named as both an individual and a representative of the City of Lathrop in the suit.
Measure C, which passed with 77 percent of the vote, adds more than $2 million in sales tax revenue to Lathrop’s coffers to help provide community benefits like park amenities, police officers, and community programs. The portion that is allotted to the Lathrop Manteca Fire District has helped fund multiple firefighter positions that would otherwise be unfilled to allow for maximum staffing levels that were jeopardized after the housing crisis took a huge chunk of property tax revenue that the district relies on for operational costs.
The council just recently agreed to spend nearly $500,000 on park upgrades that will install a rubberized play surface at the city’s most heavily used parks. Measure C money was also used to replace the aging skate park features at the 7th Street Skate Park.

To contact reporter Jason Campbell email jcampbell@mantecabulletin.com or call 209.249.3544.