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Marc S. Kirschner, as Trustee of the Yellowstone Club Liquidating Trust v. Timothy Blixseth

Thu 1st Nov 2012, Blog, Case Successes

Representing the trustee of the liquidating trust formed under the bankruptcy reorganization plan of the Yellowstone Mountain Club, LLC, Steven Jay Katzman and Tony Bisconti, along with co-counsel in Texas and West Virginia, successfully defended against a counterclaim filed by the former president and CEO of the club alleging breach of contract, conspiracy, and RICO violations, and seeking six billion dollars in damages. The court ordered the dismissal of the counterclaim, with prejudice, along with denial of a motion to amend the counterclaim. Additionally, the court granted a motion for sanctions filed on behalf of our client, awarding fees and costs incurred in defending against the vexatious counterclaim. In awarding fees, the court held that

“[E]xtensive strategy, review, analysis, and communications performed by both Bienert | Katzman and [co-counsel] B&G were substantive in nature and necessary, addressing complex substantive and procedural issues arising in this case due to several factors, including but not limited to: the nature of the specious claims asserted by Mr. Blixseth; the preexisting litigation across several forums; and complex legal questions of intersecting state, federal, and bankruptcy law.”

Read the decision granting the motion to dismiss and imposing sanctions.