United States District Court, D. Montana, Butte Division
HADDON, United States District Judge
Adversary Proceeding was filed in the United States
Bankruptcy Court for the District of Montana on September 2,
2009, and transferred to the United States District Court for
the District of Montana on September 10, 2013.
17, 2015, Plaintiff Brian A. Glasser, as Trustee of the
Yellowstone Club Liquidating Trust (the "Trust"),
moved for orders to show cause against Jessica F. Blixseth,
JTB, LLC,  and the Marital Estate of Timothy L. and
Jessica F. Blixseth,  among others, why a contempt judgment
should not be entered against them relating to the
disposition of sale proceeds from the Tamarindo Resort.
21, 2015, the Court issued Orders to Show Cause directed to
Jessica F. Blixseth, JTB, LLC, and the Marital Estate of
Timothy L. and Jessica F. Blixseth.
Response and Motion to Vacate the Order to Show Cause for
Jessica Blixseth, JTB LLC, Kawish, LLC, Western Air &
Water, LLC, and the Marital Community was filed by Jessica
Blixseth on August 21, 2015. On January 7, 2016, Jessica
Blixseth filed a Supplemental Motion to Vacate Order to Show
Cause. On January 21, 2016, the Trust filed its
Opposition to Jessica Blixseth's Supplemental Motion to
Vacate Order to Show Cause. On February 2, 2016, Jessica
Blixseth filed her reply in support of her Motion to Vacate
Order to Show Cause.
February 19, 2016, this Court issued its Opinion and Order
stating, inter alia, that Timothy L. Blixseth
"continues to have the capacity and ability to do what
is necessary to purge himself of the ongoing contempt and
could, if he chose to do so, comply with the Court's
prior orders" and that he "remains in civil
March 4, 2016, Timothy L. Blixseth filed a Notice of Appeal
of this Court's February 19, 2016, Opinion and
Order. On May 13, 2016, Timothy L. Blixseth
filed a separate Notice of Appeal of this Court's
February 3, 2014, Order,  the April 6, 2016, Judgment,
and the April 14, 2016, Order of Dismissal. The appeals
were consolidated and remain pending.
October 20, 2016, the Trust obtained a $9.4 million jury
verdict and judgment against Jessica Blixseth, now known as
Jessica Elizabeth Ferguson, JTB, LLC, and the marital
community of Jessica and Timothy Blixseth with respect to the
transfers of Western Air & Water LLC and Kawish LLC to
JTB, LLC and/or Jessica Blixseth. That judgment has been
settled and the Trust has agreed "to release Ms.
Blixseth, JTB, and the marital estate from all claims against
them, including the claims the trust brought in connection
with its motion for orders to show cause in this
December 20, 2016, the Trust moved "for entry of an
order of this Court withdrawing the orders to show cause
against them, namely Docs. 259, 260, and
263." Counsel for Jessica E. Ferguson,
formerly known as Jessica Blixseth, and Western Pacific
Timber, LLC have consented to the request. Counsel for
the remaining Defendants did not respond to the Trust's
L.R. 7.1 request.
Trust's Motion for Order Withdrawing Orders to Show Cause
Against Jessica F. Blixseth, JTB, LLC, and the Marital Estate
of Timothy L. and Jessica F. Blixseth is DENIED
without prejudice to renewal, if appropriate, upon final
resolution and disposition of all issues in consolidated
appeal Nos. 16-35194 and 16-35405.