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Serving Northern St. Louis County, Minnesota

Albertsons to appeal district court drubbing

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REGIONAL— Timberjay competitors and minority shareholders Gary and Edna Albertson have filed notice of their intent to appeal a Dec. 28 district court ruling that dismissed, with prejudice, their lawsuit against the Timberjay and its majority owners Marshall Helmberger and Jodi Summit. Their notice provides no grounds for their appeal. Such arguments will presumably be made in subsequent briefing.

The Albertsons had earlier asked District Court Judge James Florey to order the Timberjay’s majority owners to buy the Albertsons’ minority shares in the business for more than their market value or dissolve the corporation to allow the Albertsons to recoup some of their investment. State law allows courts to intervene in corporate affairs, but only if majority shareholders act improperly. But Judge Florey found there was no evidence of improper behavior by the Timberjay’s majority owners. “The record before the court demonstrates that the Defendants’ [Helmberger and Summit] actions were in compliance with both Minnesota law and the bylaws of the corporation,” wrote Judge Florey in his Dec. 28 ruling.

The Albertsons provided no evidence to the court for their claims, other than a single affidavit by Gary Albertson, in which he made false statements under oath.

In his sworn statement, Albertson alleged that the Timberjay’s majority owners had refused to provide him with annual financial reports, as is required by law, until the Albertsons served their lawsuit in December 2015. But Judge Florey notes that Albertson’s sworn statement is contradicted by numerous letters from Albertson, going back nearly 20 years, in which he acknowledges receipt of the annual financial statements and comments on them. The Albertsons had also acknowledged receipt of the documents in sworn interrogatories.

“This is simply using the courts to harass,” said Helmberger in response to the appeal. “Both the Albertsons and their attorney know they don’t have a case here, which is why they apparently felt compelled to submit false evidence. Judge Florey made a straightforward and well-reasoned decision and we are confident that the Court of Appeals will agree.”

The appellate process typically takes nine months to a year to reach a final decision.