Radio station owner involved in several lawsuits

By RICHARD HANNERS

Hungry Horse News

Radio station KGEZ, its parent company Skyline Broad-casters Inc. and its sole owner, John P. Stokes, are involved in several unfinished lawsuits filed in Montana Eleventh Judicial District Court in Kalispell.

Two cases filed against the company involve eminent domain condemnation and extinguishment of an easement. The one case in which Stokes is the plaintiff involves allegations about the sale of the radio station to Stokes in 1999.

A summary of the cases follows:

A case filed by the Montana Department of Labor and Industry against Skyline Broadcasters was vacated by Judge Stewart Stadler on January 23, 2001. The state alleged the radio station owed $1,395 for unpaid wages and penalties plus $125 in costs and fees incurred by the county attorney.

A hearing to vacate is scheduled for May 25, 2001 in a lawsuit filed by Douglas and Ruth Anderson against John Stokes and Skyline Broadcast-ers. On October 11, 1949 the Andersons provided an easement for broadcast antenna equipment on their adjoining property to Donald C. Treloar, a previous owner of KGEZ. The easement required that wires and conduit be buried 12 inches and a fence be erected around the equipment. The January 12, 2001 complaint alleges that the Andersons asked Stokes to comply with the easement requirements but he refused. The Andersons now want to extinguish the easement. Attorneys for Stokes are seeking to disqualify the plaintiffs' counsel because they represented Stokes in other cases.

The Montana Department of Transportation filed a complaint January 12, 2001 seeking to condemn a portion of the KGEZ property as part of a highway construction project where Willow Glen Drive intersects Highway 93 south of Kalispell. The radio station seeks a jury trial, alleging the state "has not made an attempt to acquire property and the interest therein at a price or cost that represents just compensation under the Constitution and the laws of the State of Montana." The case is pending.

A hearing will be held May 23, 2001 regarding a complaint filed by Rocky Mountain Bank against Stokes alleging he was in default of an $8,083 loan he made November 22, 1999. According to the bank's complaint, Stokes extended the maturity date of the loan on April 3, 2000 and again on September 29, 2000. The bank claims Stokes owed $8,472.27 plus interest on April 1, 2001. Security for loan repayment included a 1988 Ford Bronco XLT and a 1987 Jeep Laredo Wrangler, which the bank estimates are together worth $8,800.

A lawsuit brought by Stokes and the radio station against the prior officers of Skyline Broadcasting is still pending. On February 25, 2000 Stokes sued Criste Lee, Dallas Herron, Ambrose Measure, Loraine Measure, Stephen Breeze, Julie Herron and Christopher Herron alleging "damages, breach of contract, breach of the covenant of good faith and fair dealing, tortuous interference, deception, defamation, (and) demand for specific performance." The lawsuit revolves around the purchase of the radio station by Stokes on August 23, 1999.

According to Stokes' complaint, he began negotiating for the purchase of the radio station in 1995. Because of competing interests, the complaint continues, Stokes offered to pay five percent above any legitimate offer. He was told by Skyline Broadcasters that a $520,000 offer had been made, so he made a counter offer of $550,000, which was accepted. Later, according to the complaint, Stokes learned that the sellers did not have "any valid written offer to purchase."

The complaint also alleges that 20 of the company's 300 shares of stock were sold to Julie and Christopher Herron rather than to Stokes. The suit also alleges that the sellers had promised the company was debt-free, when there were debts amounting to about $70,000; that Stokes never received the "KGEZ Classic 1956 Ford Convertible Cruiser" used to promote the radio station; and that the sellers defamed him, causing "contempt, ridicule, degradation, or disgrace in society." The suit also alleges the sellers breached the confidentiality agreement of the sale.

Since the time of the initial complaint, numerous legal actions have taken place. Mary Dyre and Bruce Measure have become parties to Stokes' suit as they came to legally represent other defendants.

Lawyers for the defendants made a motion to dismiss a second amended complaint arguing that the sales agreement referred to stock only and not to the assets of the company.

An argument has also been made by the defendants' lawyer to remove Christe Lee from the suit.