Commissioners to retain outside counsel

The Lincoln County Board of Commissioners decided Tuesday to retain a government attorney and explore the possibility of retaining a transaction attorney to provide independent counsel regarding ongoing issues with the Lincoln County Port Authority.

The commissioners voted to allocate up to $5,000 to contract Flathead-based attorney Jonathan Smith to advise them of their legal rights and authorities with regard to the port authority. The port, under law, is a separate entity with quasi-governmental status. It was created by previous commissioners to manage the 400-acre parcel of land deeded to the county by Stimson Lumber, but has been plagued with ongoing issues including litigation with Stinger Welding.

“I keep hearing the port is a separate entity, but it seems every time something goes awry it comes back to us,” Commissioner Mark Peck told the other commissioners at Tuesday’s meeting.

“I certainly don’t think another look would hurt as at all,” Commissioner Greg Larson said.

Smith, a former deputy county attorney for Flathead County, was previously hired by the commissioners to review a records request and emails sent from former county executive assistant Bill Bischoff’s county email account.

In addition to approving Peck’s motion to allocate funds for Smith to provide advice, the commissioners also charged Peck to investigate the cost of hiring a transaction attorney to look into the ongoing litigation between the Lincoln County Port Authority and Stinger Welding.  

The commissioners said the decision to go outside for advice was in part to find the specific expertise required and in part because the Lincoln County Attorney’s Office is short-staffed at the moment, as they seek to replace former deputy county attorney Joe Cik.

Lincoln County Port Authority board member Kevin Peck said the lawsuit has been a drain on the port authority and the county. The litigation has cost the port authority much more than just the hard costs of attorney fees.

“This has been a dark cloud,” he said. “This has been a multi-turning zig-zagging lawsuit. We’ve spent between $300,000 and $400,000 in legal fees since 2012. Another loss is the lost opportunity of this building sitting idle and us not being able to pursue other tenants and business for the port authority.”

The lawsuit, Kevin Peck said, started as an attempt to bring Stinger to the table for a post-developmental agreement and bring them into compliance with grant and other communications requirements spelled out by the company’s agreements with the port authority. With the death of Stinger Welding principal Carl Douglas and the emergence of his primary creditor, Tommy Fisher, the litigation moved into a contest regarding ownership of equipment and the building constructed to house Stinger’s operation in Montana.

Between the value of the equipment and the building, Peck estimated more than $5 million is at stake.

The commissioners will meet again after Commissioner Peck completes his research to determine a course of action with regard to a full review of the litigation between Stinger Welding and the Lincoln County Port Authority.