Montana Supreme Court to hear cases in Kalispell

Montana’s highest court is coming to Kalispell.

The Montana Supreme Court is scheduled to hear oral arguments in two cases Sept. 16 at the Red Lion Hotel Kalispell.

While the majority of cases are heard in the Montana Supreme Court Courtroom in Helena, arguments often are scheduled in different cities throughout the state.

The court first will hear arguments on the case of H. Robert Warren and Joan Crocker versus Campbell Farming Corporation, Stephanie Gately and Robert Gately.

The 10th Circuit of the U.S. Court of Appeals has asked the Montana Supreme Court to interpret sections of the state’s Model Business Corporations Act as it relates to conflicts of interest and the “business judgment rule.”

The case arose when Stephanie Gately, the director and majority shareholder of a small corporation, attempted to give a $1.2 million bonus to Robert Gately, her son and an employee at the business.

Two minority shareholders — Robert Warren and Joan Crocker — opposed the action. The U.S. District Court of the District of New Mexico had upheld the payment of the bones and the shareholders appealed to the 10th Circuit Court of Appeals.

The second case is Richard Hill and Betti Hill, et al. versus Jack Sauther, Christopher James Nolt et al. The plaintiffs are a group of securities purchasers appealing the First Judicial District Court’s order compelling them to participate in a pre-dispute arbitration rather than filing suit directly in District Court.

“The securities purchasers assert that their acceptance of the pre-printed broker-dealer account agreement constituted a contract of adhesion which should not be enforced because it was unconscionable, not within their reasonable expectations and caused them to unknowingly waive their constitutional rights to a jury trial,” according to a synopsis of the case on the Supreme Court’s website.

In both cases, the plaintiffs will be allowed 25 minutes for arguments and the defendants will get 20 minutes.

The arguments will begin at 10 a.m. Sept. 16 at the Red Lion Hotel Kalispell.