News groups in South Dakota seek more information about partly closed financial trial

By Chet Brokaw, AP
Monday, April 26, 2010

SD news groups seek more info on financial trial

PIERRE, S.D. — Three news organizations went to court Monday seeking more information from a partially closed trial regarding a financial dispute among owners of the Bear Country USA tourist attraction in the Black Hills.

Circuit Judge John Delaney of Rapid City had sealed many court documents and closed much of the trial in Rapid City to the public after ruling that financial information about Bear Country should be protected.

The trial, which ended Monday, was to determine the fair value of Bear Country stock, giving co-founder Pauline Casey and three of her children an opportunity to buy out the shares of four other children. After Delaney set a value Monday, they had 10 days to decide.

The Associated Press, Rapid City Journal and South Dakota Newspaper Association asked the judge Monday for a copy of the trial transcript, even if financial information is edited out in compliance with his earlier ruling.

Jon Arneson, a lawyer for the news organizations, said the South Dakota Supreme Court might eventually be asked to decide whether Delaney’s ruling was proper. The news organizations had planned to ask the state’s highest court to prevent further closure of the trial, but that became moot when the trial ended, he said.

“We’re not able to actually have the satisfaction of having a closed courtroom opened. But we will hopefully be able to have someone examine whether the courtroom was closed properly,” Arneson said of a possible appeal to the Supreme Court.

Lawyers who had sought to close the trial and prevent public access to documents did not immediately return calls seeking comment late Monday. They had argued that Bear Country’s financial information amounts to trade secrets that should be kept confidential so competing tourism businesses cannot find out about the Bear Country’s inner workings and financial dealings.

Bear County USA, located in the Black Hills near Rapid City, features a three-mile drive through pine forests and meadows where visitors can see black bears, elk, reindeer, deer, cougars, bobcats, mountain goats, bighorn sheep and buffalo.

The judge originally closed the entire trial but later decided to open part of it and some of the court documents. He said financial information would be considered confidential.

In the April 21 hearing where he decided to open part of the trial, Delaney said he hoped his decision would be appealed to the Supreme Court.

“I would frankly like their guidance to know what I can or cannot do,” the Rapid City Journal quoted Delaney as saying. “I’m going to draw the line at financial data, and I’m going to protect it until the Supreme Court says otherwise.”

Lawyers for some family members involved in the lawsuit asked the court to seal income tax records, financial statements, credit card records, financial projections, expert opinions on valuing the business and transcripts of the trial dealing with such information. That information should be kept private to protect trade secrets, proprietary business information and the privacy of people involved, they said in documents filed with the court.

Arneson said the news organizations are seeking information about the case so the public can find out what government is doing.

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