In a big win for Saints and Pelicans Owner TOM BENSON, a Louisiana federal court yesterday ruled his lawsuit may continue against two trustees who have been blocking the transfer of interests in his teams from the trusts of his disowned heirs. The trustees, ROBERT ROSENTHAL and MARY ROWE, had declined to sign off on the move, arguing Benson could not simply substitute promissory notes for the interests in the team. They had asked the court to dismiss Benson’s case. However, Judge JANE TRICHE MILAZZO wrote of Benson, “The trusts grant him the unilateral power to substitute assets, and while the trustee must ensure equivalent value, he does not have the power to prevent such an exchange.” After a falling out with his daughter and her children, Benson in early '15 sought to move their interests in his empire out of their trusts. The trustees blocked the move, arguing the transactions were akin to a loan. Milazzo rejected that argument, and forcefully came down on the side of Benson, at times writing the trustees' arguments were “absurd.” She granted that the trustees can litigate over the value of the sports teams, and other asserts, but not block the transfer (Daniel Kaplan, Staff Writer).
I GOT THE POWER: The judge wrote that the trustees "have the right to challenge whether the assets are equal ... but they don't have the authority to delay the exchange," which occurred on Jan. 24, 2015. In New Orleans, Katherine Sayre notes any dispute over value of assets "must be sorted out in court." The legal dispute "doesn't involve any power over the teams." The estranged heirs' trust funds hold 60% of the Saints and 95% of Pelicans, "all of which is non-voting stock." Benson has "maintained sole control of the teams by owning all of the voting stock." The trustees have also "asked Milazzo to rule against Benson based on the argument that the billionaire doesn't have NFL and NBA approval for the deal." That issue is "scheduled for a hearing May 25" (New Orleans TIMES-PICAYUNE, 5/17).
