State Supreme Court hears cases in Kalispell Friday

The Montana Supreme Court brings its proceedings to Kalispell on Friday for oral arguments in two cases.

Proceedings begin at 10 a.m. at the Red Lion Hotel.

The court first will hear arguments in the case of H. Robert Warren and Joan Crocker versus the Campbell Farming Corp., Stephanie Gately and Robert Gately. According to court documents, Stephanie Gately, director and majority shareholder of a small corporation, attempted to give her son Robert a $1.2 million bonus, using her 51 percent share to override the opposed minority shares of Warren and Crocker.

The U.S. District Court of the District of New Mexico upheld payment of the bonus and Warren and Crocker appealed to the 10th Circuit Court of Appeals. That court now is asking 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 second case is Richard Hill and Betti Hill, et al. versus Jack Sauther, Christopher James Nolt et al.

The plaintiffs, all securities purchasers, are appealing a First Judicial District Court ruling ordering them to take part in a pre-dispute arbitration rather than filing suit in District Court. For their part, the plaintiffs are arguing their acceptance of the pre-printed broker-dealer account agreement constituted a contract of adhesion that should not be enforced because it, among other things, caused them to unknowingly waive their constitutional rights to a jury trial.

The plaintiffs in each case may present arguments for 25 minutes, while defendants will have 20 minutes.

While the majority of the state high court cases are heard in Helena, arguments often are scheduled in various cities through the state.