Following a three-day evidentiary hearing, District Court Judge Karen Townsend ruled in favor of former employee owners of Tidyman’s Management Services, Inc. Judge Townsend’s order enforces the presumption of reasonableness for a $29 million stipulated judgement entered against the defunct grocery chain’s insurer when it breached its duty to defend certain Tidyman’s executives. Shareholder Patrick HagEstad has been representing Tidyman’s employees since 2006, and litigation related to executive mismanagement of the company in a merger that left employee-held stock worthless has been pending since 2007. The employee-held stock was a major source of retirement savings for Tidyman’s employees, and Judge Townsend’s order brings Patrick’s clients one step closer to recovering at least a portion of their lost retirement savings.
