Southgate Mall group files suit against Dasen

Southgate Mall Associates, LLP, of Missoula, is suing Kalispell businessman Dick Dasen Sr. for more than $1 million.

The company alleges breach of contract, negligence, fraud, and misrepresentation or deceit, among other claims. It asks for compensation and punitive damages.

Dasen, known for business development in Kalispell, stands trial next month on 14 criminal charges related to prostitution that allegedly occurred over the past 20 years.

It was 20 years ago that he, business partner Buck Torstenson, and Southgate formed a joint venture to own and operate the Outlaw Inn's motel, restaurant and related facilities.

Since then, Dasen has sold property without Southgate's knowledge, failed to repay loans, and hasn't divulged assets Southgate says it has ownership in, the suit said.

It sets out this chronology:

? In 1994, the Dasen & Torstenson Partnership was liquidated and its 50-percent interest in the Outlaw Inn was transferred to Dasen and four Dasen children trusts with Dasen as trustee. The trusts collectively owned 20 percent of the hotel, Dasen owned 30 percent, and Southgate still owned 50 percent.

? In 1997, Dasen transferred his 30-percent interest in Outlaw Inn to Budget Finance, a business in which he was president and majority owner. Dasen was managing partner of the Outlaw Inn, keeping an office there, and was responsible for keeping and maintaining the business's books.

? In 1997, Outlaw Inn decided to purchase property south of the motel. It would later become Southfield Tower. Southgate Mall contributed half of the purchase price - $365,000.

? In 1997, Outlaw Inn began negotiations to sell the motel to Cavanaugh's Hospitality Limited Partnership. The sale didn't include the Southfield parcel.

While preparing the sale of Outlaw Inn, Southgate Mall learned that the Southfield parcel was purchased in the name of Dasen, and not in the name of Outlaw Inn, even though the mall had contributed half the price.

The mall agreed to treat its $365,000 contribution as a loan to Dasen, rather than as a contribution to Outlaw Inn. The mall and Dasen agreed to an interest rate and terms of repayment from Dasen from the proceeds of the Outlaw Inn's sale.

? In 1998, Cavanaugh's closed on the Outlaw Inn sale. Southgate agreed to close the sale without being paid for its loan to Dasen on the condition that Dasen convey a half interest in the Southfield Parcel to Southgate. Both sides agreed that the Southfield Parcel should be owned by a limited liability entity. However, Dasen never signed documents for the partnership or a warranty deed for the conveyance.

? In 1999, Dasen developed and sold part of the the Southfield parcel, and then sold the rest in 2001, without the knowledge of Southgate Mall.

Also, the suit alleges, the all-beverage liquor license at the Outlaw Inn was transferred by the Outlaw Inn to "Dasen Outlaw." Dasen Outlaw entered into an agreement to operate the bar in the motel.

The liquor license wasn't transferred when Cavanaugh's bought the Outlaw Inn in 1998. In 2000, Dasen Outlaw sold the liquor license to Outlaw Lounge, Inc., for $350,000. Dasen still owes Southgate $100,000 from the license sale, the company maintains.

The suit also alleges that the Outlaw Inn's sale to Cavanaugh's did not include cash, deposit accounts, receivables and investments. Dasen, as managing partner, has never given Southgate Mall an accounting of those assets. The company is entitled to half, it says.

Also, Dasen loaned money from the Outlaw Inn to himself, to Budget Finance, and to Dasen Outlaw. Those loans amount to about $767,000.

The suit says the mall has tried for years to collect from and negotiate with Dasen, agreeing to credit his debt for any amount Dasen can prove he should be compensated for his management duties.

Southgate Mall alleges that "Dasen's actions were undertaken with actual malice," and so punitive damages should be awarded.

The suit was filed by attorney David Berkoff in Missoula.

Dasen is also being sued by two women with whom he allegedly had sex for money.