Officials try to block Yellowstone Club founder from recovering $3.3 million in attorney fees

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HELENA, Mont. — Montana revenue authorities are trying to block former billionaire Tim Blixseth from collecting $3.3 million in attorney fees he racked up during the state’s frustrated efforts to force him into bankruptcy, according to the Associated Press.

Officials said today that Blixseth, a Washington resident, should be barred from pursuing the fees while they appeal a July ruling that dismissed the forced bankruptcy case. The state has alleged the founder of Montana’s ultra-exclusive Yellowstone Club owes $57 million in back taxes. But Blixseth has twice gotten the case dismissed by a now-retired federal judge, which allowed him to seek attorney fees from the state and other plaintiffs.

Blixseth wants to recover fees from creditors who sided with the state as part of their effort to collect on a $41 million judgment against him in the club’s 2008 bankruptcy case. Blixseth gave up the club to his ex-wife shortly before it went into bankruptcy. He’s since placed many of his assets in a family trust based in Nevada as a means of shielding it from creditors, according to court records.