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Appeals Court Rules in Favor of Yellowstone Club Founder

Court said Montana Department of Revenue lacked legal standing to file an involuntary bankruptcy petition against Tim Blixseth

By Associated Press

GREAT FALLS — A federal appeals court has upheld previous rulings against Montana authorities in their effort to collect millions of dollars in taxes and penalties from the co-founder of the exclusive Yellowstone Club.

The 9th Circuit Court of Appeals ruled Tuesday that the Montana Department of Revenue lacked legal standing to file an involuntary bankruptcy petition against Tim Blixseth as a way to recover the money, noting other creditors have withdrawn from the case.

It sent the case back to bankruptcy court to determine if it should be dismissed.

Blixseth told the Great Falls Tribune that he feels like “there is justice in America.” He said he planned to seek damages from the state for hundreds of millions of dollars and punitive damages for the destruction of evidence.

The state was reviewing the opinion and didn’t have an immediate comment.