Yellowstone Club co-founder Blixseth sues state for more than $300M in damages

A businessman embroiled in a longtime legal dispute with the state has filed a complaint against the Montana Department of Revenue, asking a U.S. Bankruptcy Court to award him attorney fees and compensation for damages that he claims total nearly $300 million.

Yellowstone Club co-founder Timothy L. Blixseth filed his complaint on Dec. 23 in U.S. Bankruptcy Court for the District of Nevada. Blixseth, according to court documents, is a resident of Nevada and he seeks a jury trial. He also asks for the amount in damages to be proven at trial.

The Montana Department of Revenue said Tuesday it was aware of the complaint but had not been served. A spokesman said the department had no current legal action filed against Blixseth. The department declined further comment.

In June, a U.S. bankruptcy judge upheld court decisions that the state of Montana lacked legal standing to file an involuntary bankruptcy petition nearly a decade ago against Blixseth over the Yellowstone Club.

The 9th Circuit Court of Appeals ruled in 2019 the Montana Department of Revenue lacked legal standing to file an involuntary bankruptcy petition against Blixseth in 2011 and referred the case to bankruptcy court to see if it should be dismissed.

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