A court-appointed manager of the Red Arrow Gold Mine has been discharged of any liability, minus any willful misconduct or gross negligence.

District Court Judge Todd Plewe on Friday, Nov. 8, granted a motion by Maximilian Investors to discharge Jaeger Kottmeier Associates, the court appointed receiver of the gold mine. The order, however, didn’t clear the receiver of all potential civil claims from Boyd Sanders, owner of property leased to and subsequently polluted by Red Arrow owner Craig Luikko.

“My client has two major concerns,” said John Kelly, Sanders’ attorney. “We want to regain control of the property pending EPA remediation, and we want to be able to seek damages against Red Arrow.”

In granting Maximilian’s motion, Judge Plewe agreed to leave Kelly and his clients legal wiggle room to seek damages from the receiver, but only under the premise of willful misconduct or gross negligence.

“There’s been nothing shown that the receiver has demonstrated gross negligence,” said Donald Allen, attorney for Jaeger Kottmeier Associates. “The receiver is entitled to a discharge of all claims.”

Allen argued via telephone to Judge Plewe Friday that the receiver is not liable simply because Sanders made the mistake of renting his property to Luikko. Neither Luikko nor his attorney was present at the half-hour proceedings.

After granting the motion, Judge Plewe stayed all matters in two separate civil cases filed by Maximilian Investors against both Heman LLC and American Patriot Gold LLC, citing pending bankruptcy proceedings in Texas.

Judge Plewe ordered the Red Arrow Gold Mine into receivership in April. After investing $25 million into the Red Arrow Gold Mine, Maximilian Investors claim they are still owed nearly $11 million in outstanding loans.

tbaker@cortezjournal.com