Are They Suing Themselves?

Here's my ignorance in full effect...

As mentioned yesterday (although I thought the lawsuit was going to be for $400 million), the Concerned Citizens of Newport Beach, Inc. (a Non-Profit Corporation mind you) filed (click here and here for articles) a $250 million lawsuit against the City of Newport Beach.

I completely understand why the angry residents and the Concerned Citizens of Newport Beach Inc. are doing this.

They are fed up, angry and frustrated by the City Council's actions (or inactions).

However...

Two Questions:

1. If Newport Beach residents are suing their own City, who collects their money from Newport Beach residents, Newport Beach businesses, and Newport Beach tourists, aren't they technically suing themselves.

I mean if the City has to pay anything out, or as Denys Oberman says:

“We expect the court to find the damage higher” than the $250 million bucks,

Doesn't that money come from the City's coffers?

Coffers that will be used to fix our streets, pay our Policemen and Firemen (and their Pension liabilities), and build White Elephants (or clean our Parks, depending on which side of Measure B you are on...)

If our Insurance Company pays the settlement, then won't the City probably lose their Insurance Company and force the City to self-insure (that is a party waiting to happen)

or

Wouldn't the City's premiums go up exponentially if they don't drop the City.

and

2. Who gets the money if the City does pay anything out (outside of the massive legal bills paid to Michael Tidus Esq.)

You can make a good argument that if that $250 million dollar figure comes from the perceived property value loss because of the Institutionalization of Newport Beach residential neighborhoods, not all Newport Beach residential neighborhoods are affected as much as others, so what would be the formula for the payout?

Would home-owners living in the affected areas in West Newport and the Balboa Peninsula get 5 times more than those living in, let's say, Newport Coast or West Santa Ana Heights?

If they got anything at all?

I can understand where the money goes once Sober Living by the Sea sues the City.

I don't know...complicated legal matters.