Wednesday, August 4, 2010

Judge declines to dismiss actor lawsuit

Storey Construction attorney claims victory in latest legal round


By TERRY SMITH
Express Staff Writer

Litigation continues in the long-standing housing construction dispute between Storey Construction and actor Tom Hanks and his wife, Rita Wilson, above.

The attorney for a Ketchum contractor is claiming victory in the latest round of lingering litigation between Storey Construction and actor Tom Hanks.

On Monday, Aug. 2, Blaine County 5th District Court Judge Robert J. Elgee declined to dismiss a lawsuit filed against Hanks and his wife Rita Wilson by Storey, wherein the contractor is alleging "abuse of process" in a legal battle that has dragged on for years. The lawsuit involves the couple's $10 million home that Wood River Valley-based Storey Construction built north of Ketchum in 2002.

"Yesterday was a huge victory for the Storey side," attorney Miles Stanislaw said Tuesday. "This whole thing is nothing but spite and revenge."

The abuse-of-process allegation was only one part of a lawsuit filed by Storey in 2007. Storey was also attempting to block further arbitration from a claim Hanks and Wilson filed earlier that year with the American Arbitration Association.

Storey argued that the matter was settled in an earlier claim the company filed with the American Arbitration Association in 2002, wherein Storey Construction was awarded about $1.85 million in unpaid balance, interest and attorney fees.

In their claim with the Arbitration Association, Hanks and Wilson are seeking about $1.5 million, alleging that latent construction defects, particularly a leaking roof, were discovered after the house was completed.

Elgee ruled in 2008 in Storey's favor regarding arbitration, but Hanks and Wilson appealed to the Idaho Supreme Court, which overturned Elgee's ruling and ordered in 2009 that the matter had not been settled and that further arbitration could proceed.

Ketchum attorney Ed Simon, a member of the Hanks and Wilson defense team, sought to have the lawsuit dismissed completely at Monday's court hearing. Instead, Elgee placed a stay of further court proceedings pending the outcome of arbitration. He further ruled that Storey's claim of abuse of process should be heard by the Arbitration Association.

Hanks and Wilson also claimed victory from Monday's court hearing. The following statement was issued on their behalf Tuesday by 42 West, a New York City public relations firm retained by the couple:

"Judge Elgee reaffirmed the Idaho Supreme Court's decision in favor of Hanks and Wilson, directing that all claims relating to Storey Construction's defective work shall only be heard in arbitration and not by the court. Hanks and Wilson are looking forward to vindicating their claims in arbitration."

Actual arbitration hasn't yet started. Stanislaw said arbitrators haven't even been appointed to hear the claims.

"This could go on for another two years at the rate we're going," Stanislaw said. "Seven years later and they're still trying to destroy a family-owned business. We want the abuse of process to be seen by the arbitration so the arbitrators can see the evil and outrageous wrongdoing that has gone on in this case."

Stanislaw said that Elgee's decision Monday to not dismiss the lawsuit makes it possible for Storey to bring the matter back to court if something happens in arbitration that Storey considers inappropriate or unfair.

Terry Smith: tsmith@mtexpress.com




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