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Wednesday, March 17, 2010

Ind. Courts - "Bren Simon loses bid to liquidate shares"

Updating earlier ILB entries about the Mel Simon estate dispute, Jeff Swiatek of the Indianapolis Star reports today:

Simon Property Group got its legal wish granted Tuesday in a lawsuit against its co-founder's widow.

A ruling by a Hamilton County judge agreed with the company's reasoning in refusing Bren Simon's request to liquidate more than $500 million worth of partnership shares she inherited from her husband.
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Judge William J. Hughes' ruling essentially could bring an end to the unusual lawsuit less than two months after it was filed.

The 15-page ruling also appears to get the Indianapolis-based shopping mall developer off the hook, for now, in having to decide whether to give cash or stock to Bren Simon for the massive number of partnership shares she controls and wants to liquidate. * * *

Bren Simon said in a court filing that she wants to convert the untradable partnership shares into cash or stock as part of her financial planning for her husband's more than $1 billion estate.

But the company denied her request, arguing that a suit filed by Bren Simon's stepdaughter Deborah Simon, challenging her stepmother's role as trustee of the estate, amounts to a lien or legal encumbrance against the partnership shares, giving the company the right to reject conversion.

Hughes agreed that "a lien exists" against the partnership shares in the form of Deborah Simon's lawsuit, which was filed in January.

Attorneys for both sides agreed at a hearing earlier this month that if the judge ruled that a lien exists against the partnership shares, that essentially would resolve the lawsuit.

But the judge didn't rule on Bren Simon's request for damages in the case, along with other matters, so the case remains open.

Hughes also is presiding over the Deborah Simon lawsuit against Bren Simon. A key hearing in that case is set for May 7 on Deborah Simon's motion to replace her stepmother as trustee of Melvin Simon's estate.

Posted by Marcia Oddi on March 17, 2010 10:08 AM
Posted to Ind. Trial Ct. Decisions