From Deseret News archives:
Ex-Tribune managers challenge appraisal
They say fraud, misuse of power affected valuation
That, along with a "manifest disregard for the law and the facts" warrant the overturning of the value and a new appraisal in the ongoing litigation over ownership of the newspaper, the managers argue.
Salt Lake Tribune Publishing Co. (SLTPC) filed its motion to vacate the appraisal late Thursday, as directed by U.S. District Judge Ted Stewart.
Earlier this month, Stewart determined the appraisal process outlined in a contested option agreement between SLTPC and new Tribune owner MediaNews Group Inc. is an arbitration, which severely limits the grounds on which SLTPC can challenge the $331 million value. The judge ordered SLTPC to outline its arguments in additional court documents and scheduled a Sept. 29 hearing on the motion.
A supporting memorandum detailing SLTPC's legal arguments was filed after hours Thursday.
The Federal Arbitration Act allows arbitrations to be vacated only in specific situations, such as those of corruption, fraud or undue means.
In Thursday's filing, SLTPC notes that its filing of the motion does not mean they agree with Stewart that the appraisal was, in fact, an arbitration. SLTPC has argued that it is not, and has the option of appealing Stewart's decision to the 10th U.S. Circuit Court of Appeals.
As the final appraisal in the process, Management Planning Inc.'s figure was averaged with a previous $380 million value, resulting in a $355.5 million price tag for the Tribune.
SLTPC maintains the price is grossly inflated and has sought to have Management Planning's appraisal overturned in both Utah's federal court and a New Jersey state court.
The final purchase price is central to the nearly 3-year-old lawsuit. SLTPC seeks to enforce the 1997 option agreement and purchase the Tribune from MediaNews, which bought the paper in January 2001 for $200 million.
Trial in the ownership-dispute case is scheduled to begin Nov. 3. Stewart has repeatedly said he intends for the parties to hold a closing on the option prior to the start of trial.
Sale of the Salt Lake Tribune - Read Deseret News' archive stories and see related links about the sale of the Tribune.
E-MAIL: awelling@desnews.com
