By Alan Sorensen
The lawsuit brought against Quantum Five, Inc. by the Confederated Tribes of the Grand Ronde Community of Oregon July 15, 1999 has one less defendant.
The lawsuit against Quantum Five codefendant Delayed Exchange Corporation was dismissed in 12th Judicial District Court in Havre on Nov. 27.
The lawsuit still names as Quantum's codefendants Havre residents and businesses, Raymond G. Gehlen Jr., Jacobson Drilling, Inc. and Bernard Patrick. Still named on the suit is Ink Investment LLC.
The lawsuit charges that Quantum Five, Inc. borrowed $900,000 from the Confederated Tribes on Oct. 30, 1996. The Tribes contend that Quantum has never repaid any of the principle or interest and that interest had accrued to $200,432.64 by June 15, 1999, a month before the lawsuit was filed.
The suit further contends that the loan repayment amount has continued to grow at the rate of $375 per day since June 15, 1999. The suit also claims the cost of paper work and lawyers' fees.
Quantum Five, Inc. purchased more than 200 acres of land on the east end of Havre adjacent to U.S. Highway 2 with the intent of building a golf course. The plans, according to company officials, was to put in the golf course and surround it with residential homes. Plans also called for a pro shop, restaurant, lounge and highway frontal businesses.
Quantum worked out arrangements with the City of Havre for water and had hoped to get the city or county government to approve the sale of tax-free municipal bonds.
The company eventually turned to the Little Shell Tribe of Montana in an attempt to get the tax-free status for the bonds. The Little Shell Tribe of Chippewa Indians, with several members living in the Havre and Chinook areas as well as throughout the state and nation, is still awaiting federal recognition as a tribe.
The plan called for the Tribe to approve the sale of the bonds with the stipulation that it would take over ownership of the golf course and related businesses. Quantum Five would have retained ownership of the residential lots surrounding the course for sale to homebuilders.
Quantum Five reportedly paid in full for the farm land and contracted with a Hi-Line producer to plant and harvest barley on the land this year.