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Sat Nov 30, 2019, 05:13 AM

Court rules against state in Blixseth bankruptcy case

HELENA The U.S. 9th Circuit Court of Appeals upheld decisions by other courts Tuesday that the Montana Department of Revenue lacked legal standing to file an involuntary bankruptcy petition against Yellowstone Club co-founder Tim Blixseth, noting other creditors had withdrawn from the case.

We hold that MDORs claim was the subject of a bona fide dispute as to amount on petition date, and, therefore the bankruptcy court and district court correctly concluded that MDOR lacked standing to serve as a petitioning creditor, Judge Michael Daly Hawkins wrote in a 22-page opinion.


Blixseth said the ruling, which was an appeal from the U.S. District Court by the state, was a victory for him.

I feel like there is justice in America, he told the Tribune. Im delighted (the panel) agreed with our decision for the past (eight) years that Montana should never have done this.


He said he planned to seek damages from the state for hundreds of millions and punitive damages for destruction of evidence. At one time he said he would seek $700 million.

Read more: https://www.greatfallstribune.com/story/news/2019/11/26/appeals-court-rules-blixseth-montana-case/4309532002/

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