Judge: Montana City Must Pay $3M Judgment To Insurance Company In Lawsuit

April 30, 2012

A state judge has ruled the city of Bozeman in Montana must repay its insurance company the $3 million it paid after the city lost a lawsuit filed by a developer.

Developer Mike Delaney sued the city in 2003 alleging the city bought an 85-acre farm even though the city manager at the time knew Delaney planned to purchase and develop the property.

A jury awarded Delaney $3 million in lost profits. The Montana Supreme Court upheld the award in 2009.

Montana Municipal Interlocal Authority paid the judgment last year, pending a court decision on whether the city should be responsible for the payment.

The Bozeman Daily Chronicle reported District Judge Kathy Seeley of Helena ruled last week that the city was responsible. Seeley noted the city still owns the property.

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