Judge Dismisses Executive Air Suit

Sept. 5, 2006
Executive Air attorney Rex Hammarback said the judge's decision was a surprise and he is carefully studying it to decide on how to proceed.

U.S. District Court Judge Patrick Conmy dismissed Executive Air's discrimination lawsuit against the city of Bismarck in its operations of Bismarck Municipal Airport.

Conmy handed down his decision Wednesday on the lawsuit, in which Executive Air sought $20 million-plus, naming the city, OnStar Management Inc., Simson Investment Co., Cook Leasing Inc., Aircraft Maintenance Services, Allen Sauter and Mark Fetch as defendants.

Conmy said Executive Air's basic assertion was that Bismarck discriminated against Executive Air by not holding other businesses operating at the airport to the same standards as Executive Air. Executive Air also claimed the other defendants conspired against them.

Among the discriminatory acts listed were predatory pricing, referral of hangar space, referral of aircraft maintenance, vehicle signage, charter services, advertising, differing lease terms, towing services and due process.

Randall Bakke has been the lead attorney representing the city since the lawsuit's inception in May 2004. He noted a tremendous amount of resources have been devoted to the case.

"The bottom line is the conclusion that there wasn't evidence to support Executive Air and the claims were without merit," Bakke said. "The city always felt that the claims were without merit and felt the city's practices with all the airport's tenants were appropriate, and we feel this decision bears that out."

Executive Air attorney Rex Hammarback said the judge's decision was a surprise and he is carefully studying it to decide on how to proceed.

"We have a great deal of respect for Judge Conmy. He is a great judge," Hammarback said. "We are exploring the possibility of appealing the decision. We want to take a good, hard look at the decision. I think we'll be making some decisions by the end of next week."

In conclusion to the summary, Conmy wrote, "Hopefully, the personal animosities between Rohlfs and the defendants which fueled this lawsuit will be extinguished by the recent sale and the conclusion of this lawsuit."

Dennis Rohlfs, who was unable to be reached for comment, agreed to sell all of his interest in TJ Holding Co., which owns Executive Air, to Brockway Moran & Partners on March 24 of this year, with closing on June 7. The agreement left Rohlfs as president of Executive Air during prosecution of the lawsuit and responsible for all ongoing legal costs.

"I think the unfortunate thing of the lawsuit is the heavy toll in terms of time and effect on city airport personnel and the private litigants," Bakke said. "The private litigants had to deal with significant attorney fees to go through the lawsuit."

Conmy denied requests that defendants be allowed reimbursement for attorney fees by the plaintiff. Conmy also dismissed a city countersuit relating to fuel taxes it said were unpaid.

Bakke said the only area Executive Air may potentially pursue are some of its state law claims. He added those were minor issues, though the city would defend against them should they return to court.

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