Judge will decide who pays state in radio case

District Judge Kitty Curtis is considering whether John Stokes or one of his creditors - or both - must pay back about $350,000 the state overpaid Stokes for property condemned near his KGEZ radio station.

And, in an amount that could exceed the repayment, Curtis is considering attorney fees that the state has agreed to pay.

The Montana Department of Transportation originally paid Stokes - owner of the station and its corporation Skyline Broadcasting - $750,500 for property south of Kalispell on U.S. 93 when the highway was expanded.

The value of the property was disputed and the matter was set for trial. Eventually, the state and Stokes settled on a price of $400,000. The state wants back the $350,000 he was overpaid.

A company named Questa had loaned Stokes about $665,000, secured by a promissory note and a mortgage to the property plus two homes, with the understanding that Questa would be paid the proceeds from the condemnation.

According to testimony Tuesday, Stokes still owes Questa $550,000 and Questa is entitled to the $400,000 award by the state.

The state, meanwhile, wants its $350,000 back from Stokes.

Stokes' attorney, Wade Dahood, maintains that Questa, not Stokes, owes the state the $350,000.

Curtis must decide who should repay the state.

To complicate matters, the state agreed to pay attorney fees in the case.

Dahood was originally paid a contingency fee of about $200,000, based on the $1 million Stokes initially requested for his property. With the case settled at less than half that, or $400,000, Dahood would have to repay some of his fees.

However, Dahood has submitted bills of $476,500 for 238 eight-hour days of work. He also wants $96,350 in paralegal fees, expert fees of $54,000 for appraiser work, $35,000 for an acoustic consultant, $6,000 for an engineering consultant and $31,000 in miscellaneous fees.

Curtis will rule later on Dahood's request.

Curtis could make a decision before the week is over, however, on the $350,000 the state wants back.

Reporter Chery Sabol may be reached at 758-4441 or by e-mail at csabol@dailyinterlake.com