IBJNews

Settlement talks set for Don Marsh severance dispute

Back to TopCommentsE-mailPrintBookmark and Share

Lawyers for Marsh Supermarkets Inc. and its former CEO are set to meet Monday in hopes of finally ending their years-long court battle in which the company already has notched a partial victory.

Following a two-week civil trial last month, a federal jury ordered Don Marsh, 75, to pay the local grocery chain $2.2 million, finding that he used company money to finance global travels and other unnecessary expenses.

Judge Sarah Evans Barker now must rule separately on whether Marsh Supermarkets can recover roughly $2.1 million in severance it has paid to Don Marsh. The original severance agreement called for a $4.2 million payment.

But first the two sides will attempt to settle the severance dispute on their own. According to a recent court document, each side was set to file by noon Friday “a brief confidential settlement statement” outlining their positions.

The settlement conference is set for 8:30 a.m. Monday.

David Herzog, a partner at Faegre Baker Daniels LLP who is representing Marsh Supermarkets, told IBJ in an e-mail that “the company has always been eager to resolve its dispute with Mr. Marsh and looks forward to another opportunity to try.”

Marsh’s lawyer, Andrew McNeil, a partner at Bose McKinney & Evans LLP, declined to comment on the settlement proceedings.

A settlement could be critical for Don Marsh, who could end up owing his former company as much as $4.3 million if he is forced to pay the jury's $2.2 million judgment plus the $2.1 million in severance he’s already received.

After Marsh Supermarkets sued him in federal court in 2009, he countersued, asserting the company improperly halted his post-retirement payouts in 2008 and still owed him about $2.1 million. The jury denied his counterclaim.

Marsh left the company he had led since 1980 following its purchase in September 2006 by Sun Capital Partners, a Florida private equity firm.

Marsh Supermarkets stopped the severance payments after it said an Internal Revenue Service audit found “disallowed deductions” for personal expenses he racked up from April 2004 to September 2006. The company ultimately paid the IRS a $616,000 penalty.

Don Marsh's attorneys insisted his globe-trotting trips were business-related and within the bounds of his employment contract.

The nine-member jury last month found that Don Marsh committed breach of contract and fraud, but stopped short of delivering Marsh Supermarkets a total victory.

Although the grocery chain had asked for $1.6 million to cover expenses and penalties related to the IRS audit, the jury awarded the company half that amount, saying it shared responsibility.

Besides the $2.1 million in severance Marsh Supermarkets also is hoping to recover, the company believes it’s entitled to $1.8 million in life insurance policy premiums paid on Marsh's behalf.

ADVERTISEMENT

  • Marsh madness
    Don Marsh knew exactly what he was doing and had no regard for company policy, business ethics, not to mention personal morals. He spent millions on himself and his women and had his fun. It's time for paybacks to the Company he ruled like it was his personal spending account!
  • Good one JB Esq.
    After reading all the inane comments attached to the sequester article, which is just a recycling of spin from Fox or CNN, depending on the viewpoint...these are so much more fun...the commenter on commenter violence here is much more entertaining, and less mean spirited...much better to suggest someone is sheltered, or even suffering from some genetic flaw...
  • Paybacks are #&$%
    A breach of contract (i.e. using the Marsh checkbook for personal expenses) between Don Marsh and Sun Capital would allow for payments to be stopped. The sale of Marsh was a stock sale, not an asset sale, so any legal or tax issues Marsh had prior to the sale would transfer to the new owner (Sun Capital). That is why Sun had to pay the $600,000 IRS penalty and is now trying to recover as much as they can from Don Marsh, which makes complete sense to me.
  • Don't be so naive
    Good question JB. That's why lawyers are dealing with this and you're commenting on this from your Mom's basement.
  • Don and Sun.
    Why should Don not receive all of his severance pay. How is that related to the questionable expense reporting? Also don't understand the need to reimburse Sun. Didn't they buy the company "as is"?

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

  2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

  3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

  4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

  5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!

ADVERTISEMENT