Tim Blixseth arrives at the federal courthouse in Missoula, Mont., on Thursday, April 30, 2009 as part of bankruptcy proceedings related to The Yellowstone Club. Photo by: AP Photo/Mike Albans
The Montana Department of Revenue is appealing a Nevada judge’s dismissal of its involuntary bankruptcy petition against Seattle-area developer Tim Blixseth.
A notice of appeal was filed Friday.
The Montana tax agency said it was taking the Blixseth appeal to the U.S. Bankruptcy Appellate Panel of the 9th U.S. Circuit Court of Appeals.
Bankruptcy Judge Bruce Markell in Las Vegas on May 18 dismissed the involuntary petition, saying it was filed in the wrong venue.
That was after Blixseth said Montana’s tax claims were disputed and that companies he’s involved with in Nevada are merely holding companies, with his home and actual physical assets in other states and nations.
The Montana Department of Revenue, however, maintains Blixseth has transferred his assets to the control of Nevada entities and that’s why Nevada was the appropriate forum for its involuntary petition.
Blixseth is known for founding the 22-square-mile Yellowstone Mountain Club luxury ski resort development in Big Sky, Mont., known for members such as Bill Gates of Microsoft.
The Yellowstone Club and Blixseth have been mired in litigation over the bankruptcy of the development in 2008, with Blixseth most recently suing his former attorney.
That suit filed last week claims Blixseth was hit with a $40 million lawsuit judgment in favor of Yellowstone Club creditors after the attorney betrayed him -- charges denied by the attorney.
Friday’s appeal may lead to delays in efforts by Blixseth to have Markell impose sanctions and punitive damages against the Montana tax agency for what Blixseth calls a bad-faith involuntary bankruptcy petition against him.
Efforts by Blixseth to recover his legal fees and costs in the case -- $814,000 so far -- may also be delayed.