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Montanore wins another legal battle

by Bob Henline Editor
| August 14, 2015 9:04 AM

Montanore Minerals has cleared another legal hurdle, but this latest victory isn’t regulatory. United States District Judge Dana Christensen ended Montanore’s long-running legal battle with Arnold Bakie, Frank Duval and Optima Inc. Aug. 7.

The court issued a preliminary condemnation order April 29, 2014, allowing Montanore a taking of easements and rights of way across mining claims owned by the defendants. The court, in the initial ruling, left for later resolution that matter of just compensation for the claims.

Pursuant to the preliminary judgment, Judge Christensen appointed a three-member panel of experts to determine the value of the subject claims involved in the taking. The commissioners, Larry Peterson, Mike Gustafson and Bruce Ennis, were characterized by Christensen as “eminently qualified for the task of determining just compensation for the unique taking in this case.”

After reviewing the case and hearing witness testimony, the commissioners unanimously ruled the defendants were owed no money for the condemnation action May 13, 2015. The defendants objected to the commissioners’ decision.

Christensen disagreed.

“In conclusion, the court concludes that the commissioners’ report is supported by substantial evidence, and that there were no substantial errors in the proceedings or misapplication of controlling law,” Christensen wrote. “The defendants have failed to establish that the report is clearly erroneous, and their objections to the report are overruled.”

Christensen exercised the judicial authority granted under Procedural Rule 52(c) to enter judgment without a jury trial.

“Rule 52(c) allows a court to enter a judgment on partial findings after the court has heard all the evidence bearing on an issue of fact,” Christensen wrote. “A judgment entered pursuant to this rule is reversible only if the appellate court finds it to be clearly erroneous, although the underlying conclusions of law are reviewed de novo. The court concludes that the parties have certainly been fully heard on the issues of fact in this case. The court has exhaustively analyzed all of the legal issues. The court cannot conceive of any additional evidence that would be offered in the course of a subsequent jury trial, or any subsequent rulings that might change the legal landscape of this case.”

After ruling on the procedural issue involved, Christensen went on to rule in favor of Montanore as a matter of law.

“The court also has the benefit here of a fully developed opinion, akin to findings of fact, unanimously issued by three highly qualified commissioners, which has been adopted in its entirety. In adopting the commissioners’ report in its entirety and conducting its own independent review of all of the evidence, this court has determined that the defendants have failed to present a legally sufficient evidentiary basis upon which a reasonable jury could find for the defendants on the issue of just compensation, thus warranting judgment in favor of Montanore, as a matter of law.”

Montanore chief executive officer Glenn Dobbs said the decision is a relief to him and the company.

“This puts to rest a 10 year saga of disruption, threats and intimidation against our company and personnel, repeated efforts to breach and damage the adit and hamper our work, and an ongoing litany of lies and distortions emanating from Arnold Bakie, Frank Wall, Frank Duval and Brian Schweitzer,” he said. “One would expect that now that their actions have been made public, and the fraud regarding the claims is out in the open, they would get on with their lives.”

The ruling ends the legal battle in favor of Montanore, but an appeal to the Ninth Circuit Court is still a possibility, Dobbs said.

Dobbs also said he is concerned the defendants will continue what he labeled as harassment by other, more nefarious, means.

“We have indications that, in spite of the commission’s finding of zero compensation, they intend to continue harassment of the company,” Dobbs said. “A month ago we were contacted by an individual who had purportedly attended a meeting with Bakie and Frank Duval in which he, a surveyor, was asked to re-survey the corners of Mines Management’s patented Johnstone Placer Claims, on which the portal to the adit is located, the objective being to develop documentation that the portal isn’t on the company’s claims. The informant refused to compromise his survey licensure. Apparently the group found a surveyor in Bonners Ferry who went to the site, did a survey and set some corners although we can find no evidence the survey was ever recorded in Lincoln County.”

Dobbs said the company will continue to aggressively defend itself in the public realm and in the courts as necessary.

“Mines Management has for more than 10 years been the target of efforts at intimidation, harassment and what we believe is out and out extortion,” Dobbs said. “Mines Management has made it abundantly clear that it intends to aggressively defend against all efforts to damage its standing in the community and reputation in the mining industry and, when justified, seek redress in the courts.”