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Judge lifts crane restraining order

by Alan Lewis Gerstenecker
| October 29, 2013 11:15 AM

A judge has lifted a temporary restraining order that prohibited Steel Girder Inc. from removing any additional cranes from the building that once housed Stinger Welding, but he warned the company that penalties may apply if any of the six remaining cranes are removed before ownership rights are decided in court. 

Fifth Judicial Judge Loren Tucker also refused to grant the Lincoln County Port Authority a preliminary injunction that would have restricted Steel Girder’s access to the cranes during the legal wrangling over assets that once belonged to the now-bankrupt Stinger Welding. The decisions were handed down during a four-hour hearing Monday in a Virginia City courtroom. 

Allan Payne, the attorney representing the Lincoln County Port Authority, argued that the county owns the cranes and was allowing Stinger Welding to use them as part of an economic development agreement that brought Stinger to Libby several years ago. Now that Stinger Welding is out of business, ownership of the cranes should revert back to the county, Payne said. 

“Judge Tucker did not issue the preliminary injunction that we were seeking,” Payne said. “And he did lift the temporary restraining order, so we’re not too happy about that.”

Phone messages left at Fisher Sand & Gravel’s offices in Dickinson, N.D., and Tempe, Ariz., were not returned. Fisher Sand & Gravel and Steel Girder are both owned by Tommy Fisher, who was listed as a creditor in the bankruptcy proceedings involving Stinger Welding. 

On Oct. 16, a 25-ton crane valued at $183,000 was removed from the former Stinger Welding building without the consent of county commissioners or the Port Authority, prompting the county to seek a temporary restraining order on the remaining cranes. The temporary restraining order was in place for about 10 days until the judge lifted it Monday.

However, Payne said the judge cautioned Steel Girder’s attorneys that lifting the restraining order was not a green light to remove more cranes. The judge has yet to rule on the ownership of the cranes. 

“He said if it was determined that the Port (Authority) does own the cranes that (Steel Girder) could end up paying for the cranes twice,” Payne said, explaining that the county may be entitled to compensation and penalties if the company removes any cranes. 

The State of Montana provided economic development grants to Lincoln County that facilitated the deal that brought Stinger Welding to Libby. And Payne said the state may request for the grants to be repaid if the county is unable to retain ownership of the cranes. 

Lincoln County Commissioner Tony Berget said he hopes the judge will rule in the Port Authority’s favor. 

“From what I understand, there was not a preponderance of evidence as to who owns the cranes,” Berget said. “We could get damages for the removal of the crane. We think we’ve got a pretty good case.”

A date for the next hearing has not yet been set.