From Deseret News archives:
Tribune appraisal is debated in federal court
Ex-owners say newspaper $355M value is too high
Patrick Carome, attorney for former owners Salt Lake Tribune Publishing and the McCarthey family, said the $355.5 million appraisal "stinks to high heaven" and accused New Jersey appraisal company Management Planning Inc. (MPI) of "gross misconduct." The McCartheys contend the value of the paper should be around $200 million and even less, alleging that the current owners, Media News Group Inc., which owns the Denver Post, has run the Tribune into the ground since it purchased the paper in 2001.
Last May the 10th Circuit Court of Appeals overruled U.S. District Judge Tena Campbell's decision to let the appraisal stand, directing the court to consider if the appraisal was done in a fair and legal manner. Since then, Campbell has recused herself from the case and U.S. District Judge Paul Cassell has taken over.
The question remains just how far the former Tribune owners get to go in attempting to disprove the appraisal.
In court Thursday, Carome asked Cassell for permission to depose as many as 60 individuals from MPI and Media News in its quest to find out if the appraised value of $355.5 million was accurate.
Cassell questioned why the McCartheys couldn't use corporate income statements to conduct its discovery. Carome responded that they aren't about to trust Media News' reports on the Tribune's performance and want to investigate for themselves.
Cassell said he might consider allowing the expanded discovery but warned he wasn't about to "chase rabbits through the woods" in allowing the McCartheys to begin questioning every business decision Media News has made in running the paper. Cassell ordered that Media News supply corporate income statements since 2001 and requested written motions from both sides on the scope of discovery.
For more than five years the McCarthey family has fought to regain control of the Tribune after losing it in a series of corporate mergers for tax purposes.
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