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Show Sat/Sun/Mon/Tues, August 25-28, 2018 The Park Record A-11 CLASSIC BURRITOS MIX & MATCH FOR A LIMITED TIME 2 FOR 6 $ PARK RECORD FILE PHOTO The Summit Water Distribution Company is seeking nearly $18 million in damages from the estate of one of its founders and several others, claiming they misappropriated millions in funds. Continued from A-1 Water firm sues in July; his son Brody Saunders, an SWDC board member; Stuart Knowles, a longtime member of the SWDC board; a firm called Trilogy Limited, LP; John S. Flitton, a company shareholder; and a firm called Flitton & Glick, P.C. Leon Saunders founded SWDC in 1979 and served as its president until April of 2015 and held the largest chunk of the company’s development shares, the lawsuit states. When he resigned from the board of directors in 2015, his son, Brody, was appointed to fill the vacated seat and represent a trust into which Leon Saunders had transferred his interest in SWDC. Knowles, a longtime board member, was the second largest development shareholder and transferred his stocks to Trilogy Limited, according to the suit. The lawsuit accuses Leon Saunders of authorizing the sale of 311 shares of stock to the Weber Basin Water Conservancy District in 2010 and never disclosing the transaction to the SWDC board. The Weber Basin Water Conservancy District issued a check to SWDC in the amount of roughly $4.9 million, but the funds were never deposited into the SWDC’s accounts and were, instead, distributed to Leon Saunders and Trilogy Limited, the lawsuit claims. The lawsuit also states Brody Saunders and Knowles signed a confidentiality agreement related to the sale and that the check from the transaction was deposited into an account of Flitton & Glick, P.C. before being distributed to Leon Saunders and Trilogy Limited. Flitton recorded the bill of sale with the county recorder, according to the suit. The lawsuit further alleges $13 million from the 2013 sale of an SWDC treatment plant to the Weber Basin Water Conservancy District were also distributed to Saunders and Trilogy Limited, and that the SWDC never received any of the proceeds. Attorney Shawn E. Draney is representing Trilogy Limited, Knowles and Brody Saunders. Draney said in an email statement the Saunders family is in the process of having a personal representative appointed for Leon Saunders’ estate. The statement further says an estate cannot be sued or have counsel until a personal representative is appointed. “All of the information avail- able to us so far substantiates our belief that the claims are without merit and are time barred,” the statement read. “A response to the company’s complaint will be filed within the time provided under the rules.” When SWDC hired new management in 2015, the new officers began reviewing past transactions made under the leadership of Leon Saunders, Brody Saunders and Knowles. The suit claims the three refused to vote on issues related to the investigation of the transactions and “continued adverse domination of the board and of voting shares.” The suit accuses Knowles, Brody Saunders and Leon Saunders of breach of fiduciary duty. Flitton, an attorney and shareholder of Flitton & Glick P.C., represented Leon Saunders, Knowles and SWDC, the suit states, and is accused of legal malpractice. SWDC is seeking a judgment of not less than roughly $17.9 million from the defendants. The water company currently serves 4,400 connections between the top of Parley’s Canyon and Canyons Village at Park City Mountain Resort, with users and businesses in the Jeremy Ranch, Kimball Junction and Trailside areas. Other neighborhoods and businesses are also served through the water company. Attempts to contact the other defendants were unsuccessful. 1723 UTE BLVD., PARK CITY, UT ©2018 Del Taco LLC DTL-17664 SINGLE ITEM PRICE ON MENU BOARD. PRICE AND PARTICIPATION MAY VARY. DTL-17664_P9_Park_Record_R2_F.indd 1 8/22/18 12:42 PM Need CBD oil for pain? East West Health is the only clinic in Utah to carry Charlotte’s Web, the World’s Most Trusted Hemp Extract. Charlotte’s Web™ is a whole plant hemp extract containing the entire range of U.S. Government patented cannabinoids. Health issues CBD oil can help manage: INFLAMMATION MIGRAINES INSOMNIA ANXIETY CHRONIC PAIN MENSTRUAL CRAMPS We also have topical creams for your aches and pains. Come by our office to see all of the Charlotte’s Web products we have to offer. East West Health 1790 Sun Peak Dr., #A-102 Park City, UT 84098 435-640-1353 park city’s best keeps getting better Voted Park Cityʼs Best Roofing Contractor in 2013, 2015, 2016, 2017, & 2018 We ARe Now Park City’s official SunPower Authorized Dealer STANDING SEAM METAL ROOFS • SOLAR PANEL INSTALLATION • SHINGLE ROOFING • INTERIOR SHEET METAL ARCHITECTURAL SHEET METAL • METAL COUNTERTOPS • SOLAR HEATED DRIVEWAYS • RAYCHEM HEAT CABLE INSULATED ROOF SYSTEMS • WALL PANELS • FLAT ROOFING GET A FREE ESTIMATE 435.615.8669 ONTOPROOFING.COM | ONTOPSE.COM |
