Entries in Balsams (8)
New Hampshire Corruption-fighter Andy Martin continues battle to save national landmark hotel The Balsams
Andy is expected home in New Hampshire in time to join the contest to choose a new GOP state chairman
(MANCHESTER, NH)(December 6, 2012) Andy Martin, New Hampshire’s leading corruption fighter, has sent a Notice of Appeal to the New Hampshire Supreme Court seeking to unravel what Andy calls a corrupt scheme to turnover a national landmark hotel to real estate speculators who vandalized the facility. A copy of the Notice of Appeal is an ATTACHMENT to emailed versions of this news story.
Andy’s notice of appeal will be delivered to the New Hampshire Supreme Court by overnight delivery service on December 6th.
Andy 26-page Notice of Appeal contains three pages of reasons why the New Hampshire Supreme court should review the inaction of New Hampshire Attorney General Michael Delaney in approving a transfer of The Balsams national landmark hotel to real estate speculators who promptly trashed the interior of the historic facility, thereby precluding an immediate reopening of The Balsams.
“The hotel never should have been closed by the Tillotson Trust,” Andy says. “But the buyers could have immediately reopened, and remodeled over time, as every other historic hotel has been renovated. The ‘buyers’ never had any plan to promptly reopen the hotel. The crooks who assumed control also closed a culinary program that offered a career path for North Country youngsters. Three hundred families derived an income from the hotel, in an economically struggling region. I intend to see that the perpetrators of these crimes are held accountable. Pages 23-25 of my Notice of Appeal outline the reasons why the New Hampshire Supreme Court should hear the case.”
Andy has been on an extended family vacation since the presidential election. He is expected to return home to New Hampshire to engage in full-throated participation in the fight to choose a successor New Hampshire GOP chairman.
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WHAT OTHERS SAY:
“Andy Martin is revolutionizing journalism… [Andy] brings to online journalism what Rush Limbaugh [brings] to radio or Michael Moore to film: sleek little stories that fit into larger political narratives…”
“The only American journalists that are “standing UP” [to Obama] are, Andy Martin…”
Andy is a legendary New Hampshire, New York and Chicago-based muckraker, author, Internet columnist, talk television pioneer, radio talk show host, broadcaster and media critic. Andy’s family immigrated to New Hampshire 100 years ago; today his home overlooks the Merrimack River. He has forty-four years of background in radio and television. He is the author of “Obama: The Man Behind The Mask” [www.OrangeStatePress.com] and he produced the Internet film "Obama: The Hawaii’ Years” [www.BoycottHawaii.com]. Andy is the Executive Editor and publisher of the “Internet Powerhouse,” www.ContrarianCommentary.com. He comments on New Hampshire, national and international events with more than four decades of investigative and analytical experience both in the USA and around the world.
Andy has been a leading corruption fighter in American politics and courts for over forty-five years. [www.AndyMartin.com] He is currently sponsoring www.AmericaisReadyforReform.com. See also www.FirstRespondersOnline.us; www.EnglishforAmerica.org
He holds a Juris Doctor degree from the University of Illinois College of Law and is a former adjunct professor of law at the City University of New York (LaGuardia CC, Bronx CC).
THE STATE OF NEW HAMPSHIRE
MERRIMACK, SS SUPERIOR COURT
Case No. 217-2012-CV-00326
Lawrence J. Spellman, et al.,
RESPONSE TO OBJECTION TO MOTION TO VACATE
Petitioner responds to the Objection filed by three defendants.
1. Petitioner has still not seen the Court’s Order
On November 15th Opposing counsel emailed Petitioner a copy of counsel’s cover letter and Objection to Petitioner’s Motion to Vacate but neglected to attach a copy of the order which is under review.
Until November 10th when power was fully restored after Hurricane Sandy, Petitioner was superintending matters at his New York offices. Petitioner was in Manchester to vote, but the Court’s order was not yet available on November 6th.
Although Petitioner anticipates that the Order may be received on November 19th, there is no guarantee he will receive it then. Mailings and other materials have been delayed in reaching petitioner due to the hurricane and second storm, which is why all of Petitioner’s documents routinely agree to accept service by fax or email. Petitioner has yet to see any of the collegiality or courtesy which the New Hampshire Supreme Court mentioned in In Re Proposed Rules, 139 N.H. 512, 659 A.2d 420, 424-425 (N.H. 1995).
2. Neither the Court nor Petitioner are blocking defendants
Neither the Court nor the Petitioner have taken any action which precluded the defendants from taking any actions. Rather the Defendants’ own manipulations are what reflect bad faith.
The Defendants took control of a historic national landmark promising to “reopen” the premises. The property was in turn-key condition although requiring ongoing maintenance consistent with any other hundred year-old building. Instead of reopening and maintaining-while-open - which is the practice followed by every other historical hotel in the United States - the Defendants took control for approximately $2 million, collected approximately $800,000 for an easement, and then stripped the interior of the hotel for more cash thereby both (1) precluding the hotel from reopening and (2) reducing their investment to a tiny fraction, substantially less than a million dollars. Defendants have apparently listed the property for resale at $5 million, seeking a 500% profit in just a few months.
The 500% profit reflects value that should be recovered for the victims/beneficiaries of the trust, who were victims of fiduciary abuse and corruption. The speculators who worked out a sweetheart deal with the Attorney General and the Tillotson “trustees” should not be allowed to retain the fruits of their corruption.
Going one step further, it is reasonable to ask: what was/is the Defendants “announced” business plan? Defendants now propose to take a property in which they have invested less than a million dollars and to seek new “investors” who will “invest” somewhere between $10-20 million dollars in the venture. While P. T. Barnum said there was a “sucker born every minute,” there are probably not many suckers who will risk $10-20 million when the principals have less than a million in the deal. In other words, the announced “plan” was/is merely a pretext for the purchase-and-flip scheme which the defendants had when they acquired control of the asset.
Defendants never had any intention of reopening the hotel, never prepared architectural plans prior to purchase, never prepared a reopening budget prior to purchase, and never sought financing or did any of the normal practices and procedures related to due diligence before people purchase an ongoing business for repair and renovation.
3. This lawsuit is neither frivolous not vexatious
New Hampshire is a “low tax/small government” state. But who can act in the absence of a government bureaucracy when public officials abuse the public trust? The defendants argue that once the Attorney General abdicated his fiduciary duty concerning The Balsams, and assumed the posture less of Justice Cardozo and more that of Pontius Pilate, the public was and is powerless to fight or even question the General’s official corruption because of the judicially-created standing doctrine.
The normal rules of judicial standing cannot and must not be used to shield official corruption from meaningful public inquiry in a common law equity petition. The Attorney General was charged with supervising a public trust. There were hundreds of beneficiaries of this Trust in three states. Neil Tillotson intended to benefit people, not highfalutin trustees and law firms. Tillotson’s intentions were cast aside.
4. The Attorney General acts in an administrative,
not prosecutorial, capacity with regard to the supervision of charitable trusts
The Attorney General ignored any normal standards of fiduciary review and rubber-stamped the “sale” of The Balsams to real estate speculators in four days over a Thanksgiving Day holiday. The General had no intention of protecting the rights of the beneficiaries from corrupt and predatory trustees. Indeed the purchasers’ subsequent actions in trying to “flip” The Balsams strongly suggests that the trustees were engaged in a deal to benefit insiders and to ignore the struggling families that lost a significant source of employment.
Both state law and the common law are clear that the Attorney General was acting in an administrative, not prosecutorial manner in the case of fiduciary review. Therefore, the stricter standards of administrative law and judicial review of administrative action apply. In fact, the Charitable Trust statute, NHRS 7:20 et seq. provides for the adoption of procedural rules by the Director, confers broad administrative and investigatory powers, NHRS 7:24 and expressly applies fiduciary standards, NHRS 7:28-e. To some extent, therefore, this Petition in Equity could be deemed a review of common law administrative action and dereliction of duty by the constitutional officer in charge.
Administrative law and fiduciary law are clear: the common law power to approve a fiduciary action carries with it the power to impose reasonable conditions on that approval.
The exercise of fiduciary duty by a state constitutional officer implies a duty to engage in meaningful and informed inquiry before issuing approval that could lead to the elimination of hundreds of irreplaceable New Hampshire jobs.
After receiving the Defendants’ materials on the afternoon before Thanksgiving Day, the Attorney General did nothing. He or his staff (letters indicate both the General and his staff participated) simply rubber-stamped the incomplete information that was provided to them.
The refusal of the Attorney General to act in a bona fide fiduciary capacity, and the damage inflicted on a public trust by the Tillotson trustees, are reasons why this Court should order an expedited trial instead of acting in a manner which elevates “procedural technicalities” over “emphasis on justice” that frustrates a search for truth into why a constitutional officer allowed The Balsams to be sold to buyers who had no intention of protecting the Tillotson Trust beneficiaries.
In forty-three years since graduating from law school and fighting corruption nationally, The Balsams scandal is perhaps the most corrupt example that petitioner has ever seen of insiders allowing a theft from the beneficiaries of a public trust to enrich outsiders.
In a “low tax/small government” environment, where state government does not have a large bureaucracy to superintend official corruption, the common law mandates citizen action step into the breach. The courts cannot constitutionally bar a bona fide lawsuit which seeks to investigate and undo an obvious example of corruption and maladministration.
The “standing” doctrine was not created and never intended to shield or insulate New Hampshire constitutional officers from stealing or allowing others to steal from a public trust.
5. There is no basis for attorneys’ fees
The Defendants demand attorneys’ fees because their
clients have been hauled into court to explain a suspicious transaction in which hundreds of beneficiaries were victimized and a handful of insiders were benefited. There is no basis for any award of attorneys’ fees in this action. The undisputed and unavoidable facts reflect that a public trust was looted to benefit insiders and to both ignore the interests of the beneficiaries of the trust and the trustor’s intentions.
The Tillotson Trust was created to benefit people in the North Country and not trustees or law firms in Manchester and Boston.
Petitioner fearlessly helped to send corrupt gangsters and politicians to federal prison. If Petitioner was not intimidated decades ago by the Chicago Crime Syndicate and its progeny, it is unlikely he will be intimidated by opposing counsel’s efforts to prevent him from objecting to the heist of the Tillotson Trust by the defendants.
The appearance of impartiality and justice are not served when a Court departs from normal practices and procedures and prevents a Petitioner from filing even one amended pleading.
This case is going to be reviewed by the New Hampshire Supreme Court, as well as potentially by federal criminal authorities and even courts in other states where intended beneficiaries reside. It will certainly raise judicial eyebrows if the nisi prius court frustrated the filing of even one amended pleading.
At a minimum this Court should afford the New Hampshire Supreme Court a full record including allowing Petitioner to file one amended pleading.
DATED: November 16, 2012
ANDY MARTIN, J.D.,
Adjunct Professor of Law
Principal address for
service of documents:
NATIONAL LITIGATION CENTER
P. O. Box 1851
New York, NY 10150-1851
Toll-free tel.(866) 706-2639
Toll-free fax (866) 707-2639
SERVICE OF NOTICES IS RESPECTFULLY
REQUESTED BY FAX OR E-MAIL
Additional e-mail address available upon request
with additional courtesy copy
[if defendants desire to serve
a second copy] to:
Andy Martin, J.D.
816 Elm Street #251
Manchester, NH 03101-2105
Certificate of Service
I certify I have served opposing counsel by email on November 16, 2012 as follows:
 After Petitioner prepared an initial draft of this response he received a Google Alert that a report had also appeared in the Union Leader on November 15th. It appears everyone in New Hampshire has been furnished with a copy of the Court’s order except the Petitioner. The news report contained the false claim that the litigation had somehow precluded the defendants from making “renovations,” which is part of a seeming disinformation campaign disseminated by the defendants. http://www.unionleader.com/article/20121114/
 Petitioner’s personal observation was that the facility was operating fine. To the extent that there was any deferred maintenance, that deferral reflects waste and mismanagement by the trustees. Any real property requires ongoing maintenance.
 Meinhard v. Salmon, 249 N.Y. 458, 464 (N.Y. 1928); In Re Estate of Crowley, 129 N.H. 557, 529 A.2d 960, 962 (N.H. 1987); Mussman’s Case, 116 N.H. 541, 364 A.2d 1263, 1265 (N.H. 1976).
 Whitaker v. Drew, 149 N.H. 55, 816 A.2d 984, 988 (N.H. 2003).
 Now that the election is over and Petitioner is no longer traveling nationally he is going to take The Balsams case to federal prosecutors. Like the army “generals” who now find themselves ensnared in embarrassing situations, opposing counsel should weigh carefully whether their actions and professional behavior would withstand independent inquiry.
New Hampshire corruption fighter and conservative blogger Andy Martin files suit to undo sale of New Hampshire’s historic hotel The Balsams
Andy says the New Hampshire Attorney General unlawfully and fraudulently approved a sale of “The Balsams” to real estate speculators and hucksters that are systematically destroying the hotel and never had any plans to reopen the facility
Andy calls the Neal Tillotson Trust/Tillotson Corporation a “Peyton Place” of New Hampshire corruption
Andy has become New Hampshire’s only public interest lawyer by default
(CONCORD, NH) (July 5, 2012) New Hampshire corruption fighter and conservative blogger Andy Martin, who by default has become New Hampshire’s only public interest lawyer, announced today (Thursday) that he has filed suit to undo the sale of New Hampshire’s historic grand hotel The Balsams. Andy charges the “sale” of the Balsams was tainted by corruption and insider dealing.
The suit was filed in Merrimack County Superior Court, has been served on the defendants and process has been returned to the Clerk’s office. Among other relief the suit seeks to undo the sale of the overall property to Daniel Hebert and Dan Dagesse, Jr.
“The more I looked into the sale of The Balsams the more it smelled,” Andy says. "The media were asleep and no one in New Hampshire is organized to fight local corruption. Hebert and Dagesse never had any intention of reopening The Balsams. A priceless North Country resource is being raped and destroyed by these real estate hucksters/speculators.
“The recent ‘auction’ of The Balsams contents was an effort to ensure the hotel never reopens as a family-oriented facility.
“Governor Lynch and Attorney General Delaney eliminated 300 North Country jobs. They are two of the biggest job-destroyers in recent New Hampshire history.
A copy of the lawsuit is attached to emailed copies of this news release.
“I have consistently accused the New Hampshire Attorney General of fraud and incompetence in his regulation of the Tillotson Trust and eventually I am going to ask the Court to appoint a special prosecutor to investigate this mess.
“We know as a fact that Attorney General Delaney conducted his ‘review’ proceedings in secret, received no input from the public, and allowed a priceless North Country resource to be sold in the dark of night to a couple of hucksters and speculators. That is not the way public trust assets are supposed to be handled. The whole transaction smelled from start to finish.
“Are we to understand this is how public trusts are ‘regulated’ in New Hampshire? The rape of Neal Tillotson’s trust is a public disgrace.”
Andy will have more to say abut The Balsams and other political issues at a Concord news conference Monday July 9th.
NOTICE OF IMPENDING FEDERAL AND STATE CIVIL RIGHTS
LAWSUIT TO BLOCK AUCTION OF BALSAMS CONTENTS, ETC.
Lawrence J. Spellman, Auctioneer
License No. NH6034
North Country Auctions
Dear Mr. Spellman:
I am writing to ask that you cease and desist from your proposed auction of the contents of The Balsams tomorrow. Monday I will be filing a federal/state civil rights lawsuit to undo the sale of The Balsams and to block a destruction of the contents of the hotel as a collective entity (of contents).
If you go ahead and conduct a fraudulent auction, the buyers of any of the personal property of The Balsams will become liable as necessary parties to undo the sale of The Balsams contents. At a very minimum you should warn “buyers” that if they proceed tomorrow they are “buying” themselves a place in a lawsuit.
The Balsams was a historic hotel that was operating pretty well in a difficult economy. It should have been, and may still be, continued as a going concern. The hotel provided hundreds of local jobs (which was the intent of the Tillotson Trust) as well as training programs for local and state students.
The purported buyers of the hotel, Dan Hebert and Dan Dagesse, Jr. are real estate speculators and hucksters who fraudulently claimed to be “preserving” The Balsams to gain control of the real estate, when they had every intention of destroying the property as a going concern.
Many historic hotels go through periodic renovation without being closed and certainly without disassembling the contents of the historic structures. Hebert and Dagesse had no intention of preserving the historic “Balsams” and entered into a dark-of-night deal with corrupt members of the Tillotson Trust and Tillotson Corporation, as well as corrupt and/or incompetent members of the Attorney General’s office, to peddle the hotel for a fraction of its worth.
In any event, all that will be made clear in my lawsuit. A draft of the complaint will be served upon you either later this evening or early tomorrow morning.
I have already filed and won one lawsuit involving The Balsams so my promise to proceed with litigation Monday is not an empty threat or a hollow prediction. I have attached to the emailed version of this letter a copy of the Superior Court’s earlier ruling.
Unfortunately, you find yourself in the middle of a massive corruption scheme involving politicians, big shot insiders from Manchester to the Attorney General’s office, to others.
I urge you not to get left holding the bag by going forward with a fraudulent auction. Obviously, you can’t claim you had “no notice” of what was coming if you choose to proceed. Likewise buyers of any of the items sold will be named as interested parties the lawsuit.
Please govern yourself accordingly.
W/encl./attach. Copy of Superior Court Decision
cc: Balsams View, LLC (via fax)