Attorneys on both sides of Ghost Town case claim rulings are a win

Dec. 10—Attorneys on opposite sides in the Jill McClure v. Ghost Town in the Sky, LLC and Maggie Valley RV Park, were delighted with the two court rulings of Special Superior Court Judge for Complex Business Cases Adam M. Conrad, although for different reasons.

"I'm tickled to death," said Waynesville attorney Russell McLean in an interview following the ruling. McLean represents South Carolina developer Frankie Wood, the managing member of both corporations.

"She didn't get her injunction and certainly didn't get appointed as receiver. That's what all this was about. Now we can move forward and ask for an appraiser so we can buy her out," he said.

McLean said since Jill McClure, the niece of Wood's late business partner Alaska Presley, has no management control, his client's preference is to buy her out.

He said McClure will have access to whatever corporation records she requests and that the documents will be provided in the manner required to give it to her.

"This is exactly where I wanted it to be and why I took it to business court. I didn't want to deal with anyone who didn't have knowledge of complicated business transactions," McLean said.

The next step is to negotiate a sales price with McClure, he said. Short of that, McLean asserted the court could name an independent appraiser, who would determine the value of the companies.

He said Buck Mountain isn't worth what McClure thinks it is, and said she already turned down a $4 million offer. If it comes to a court-ordered appraiser setting the value, "we have to pay and she has to sell for whatever they appraise it at," he said.

Amusement company interest

McLean said Wood is working with the largest amusement company in the world but they didn't want to sign a contract until the issues with McClure were resolved.

He did not identify the company, but Wood previously has mentioned an association with Storyland Studios, a California firm that specializes in entertainment venue design and development. Matt Ferguson of that firm has been in attendance at presentations by Wood on Ghost Town progress.

Plaintiff pleased

McClure's attorney Mary Euler is also delighted with the court orders.

"We're very happy she's now considered a member and can seek to dissolve the LLC," Euler said. "Deciding against us on the appointment of receiver is not bad for us because it would have been quite expensive, but it would be worth it to get Frankie out of there."

The next step will be that McClure will call a meeting of the corporation, which she is allowed to do as a member, Euler said. She will then be able to require Wood to provide all the records, including how the money Presley contributed to the corporations has been accounted for.

"We will ask them to produce all books and records required by law," she said. "We will ask for bank account records — everything we're entitled to if we ran a business. If they don't produce that, it's further proof Frankie can't run the company."

Euler said she fully anticipates every proposal her client makes will result in a deadlocked vote of the two exiting LLC members — Wood and McClure at this point — which will provide further evidence the corporations can't be run effectively and ought to be dissolved.

Euler said her client isn't opposed to being bought out, but said the original offer included a delay period before the money would be available. McClure filed an affidavit with the court on Nov. 17, that included a copy of a proposed agreement of sale of McClure's interest in the Ghost Town LLC.

In that agreement, Wood wanted McClure to signed her 50% interest in the LLC over to Wood, but he would have up to 180 days to deposit certified funds with Sylva attorney Diane Sherrill to satisfy the purchase price.

"It doesn't matter what the agreement is, when it comes to writing the check, it's not going to happen," Euler predicted. "If he had the cash, she would sell, but there is no evidence whatsoever of that. That is the crux of the matter. If he had the money to buy Jill out, he would have done it. He doesn't have the money, he doesn't have half the money, he doesn't have a quarter of the money. He just doesn't have it, and that's why we are spinning our wheels in court."

Euler said she has seen no evidence that Wood has set up a corporation bank account or that he has ever deposited funds into the two LLCs that were given to him by Presley before her death in April.

She said she is expecting answers to those and other questions when she takes Wood's deposition later this month. She further said she isn't sure what Wood's end game may be.

"Hopefully, Frankie will get an amusement park someday," she said. "Maybe his end game is someone will come along and give him money, maybe a 95-year-old-lady. Maybe he's holding out for that."