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Appeals Court reverses ruling in timber lawsuit

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Appeals Court reverses ruling in timber lawsuit
Brainerd MN 506 James St. / PO Box 974 56401

MINNEAPOLIS (AP) — The Minnesota Court of Appeals says a lower court erred when it ruled in favor of timber companies who claimed the state broke promises by capping payments under a forest management program.

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Three large timber companies sued the state last year, saying Minnesota breached contracts by capping payments at $100,000 per landowner. They claimed the caps cost them nearly $8 million.

The payments are made under the Sustainable Forest Incentive Act, which allows landowners to get annual payments if they meet requirements such as having a forest management plan.

The appeals court says the act is not an enforceable promise, and the case should go back to Ramsey County so a ruling can be made in the state's favor.

The state capped payments as lawmakers tried to balance the budget.

Copyright 2012 The Associated Press.

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Denton (Denny) Newman Jr.
I've worked at the Brainerd Dispatch with various duties since Dec. 7, 1983. Starting off as an Ad Designer and currently Director of Audience Development. The Dispatch has been an interesting and challenging place to work. I'm fortunate to have made many friends, both co-workers and customers.
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