Music fest flop will play out in court

By Dan Daly, Journal Staff Writer | Wednesday, October 26, 2005

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DEADWOOD — Was it a merely a deal gone bad, or was it fraud?

That is the question that a Lawrence County jury will be asked to decide next month when a civil lawsuit against organizers of the ill-fated 2004 Sturgis Music Festival goes to trial.

The trial is set for Nov. 7 and 8 before 4th Circuit Judge Timothy Johns at Lawrence County Courthouse in Deadwood.

However, defendants in the suit recently filed a motion seeking a delay. A hearing on that motion is set for today.

Nobody will argue that the Sturgis Music Festival wasn’t a disaster. Sturgis 2004, the limited liability company that staged the festival, scheduled eight nights of concerts in downtown Sturgis during the city’s motorcycle rally. The lineup included acts such as Hank Williams Jr., B.B. King, .38 Special and Rare Earth. Ticket prices ranged from $25 to $50 per night.

But half-way through the week — and four hours before that night’s Classic Rock Night concert — the Sturgis Music Festival abruptly folded. People who had bought advance tickets were left with nothing.

A short time later, TDG Communications of Deadwood filed a lawsuit in Lawrence County against Sturgis 2004, a Mississippi company, and its principal, Ronald M. Rose of Dayton, Ohio. The suit also named Kickstand Productions of Las Vegas and Kickstand’s principals, Paul Barrow and Ericka Hansen.

TDG is a Deadwood public-relations and advertising firm. The company had spent $77,000 for advertising, printing and promotion before the Sturgis Music Festival began. It received $29,000.

The suit seeks the remaining $48,000, plus costs and punitive damages.

TDG’s attorney, Haven Stuck, alleged in court papers that Rose fraudulently transferred the assets of Sturgis 2004 LLC to himself as the Sturgis Music Festival collapsed. Rose left town Aug. 11, 2004, the day that ticket- holders were trying to get refunds for that night’s B.B. King concert.

TDG’s lawsuit is one of several claims against Rose and Sturgis 2004. The state of South Dakota seeks unpaid taxes, and the owner of the property seeks unpaid rent. Kickstand, Barrow and Hansen also filed cross-claims against Rose, alleging that he is responsible for the debacle.

“It’s not my intention to try the sad history of the Sturgis Music Festival,” Michael Loos, Rose’s attorney, said. “This is the story of a bill that didn’t get paid.”

He said Sturgis 2004 was responsible for the bill — not the individual shareholders in the company. “Mr. Rose is not personally responsible any more than any other member of a corporation is (responsible) for corporate debts,” Loos said.

But Stuck, who is suing Rose directly in his suit, said the promoter is liable because he fraudulently took money from the company — money that could be have been used to settle the unpaid bills.

Rose and his accountant have denied committing fraud, Loos said.

Contact Daly at 394-8421 or at dan.daly@rapidcityjournal.com