Appeals court denies request to stop Galt House sale - WDRB 41 Louisville News

Appeals court denies request to stop Galt House sale

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The Galt House in downtown Louisville The Galt House in downtown Louisville

LOUISVILLE, Ky. (WDRB) --  The Kentucky Court of Appeals has denied an emergency request to stop the pending sale of the Galt House hotel in Louisville.

The April 19 decision does not end the maze of litigation among the heirs to the Al J. Schneider Co., which owns more than $200 million in real estate, including the downtown hotel.

The trustees who control the company, a group led Schneider Co. CEO Mary Moseley, have said in court papers that they want to sell the two-tower riverfront hotel for $135 million to an undisclosed buyer.

Moseley’s group controls a trust that – until May 31 – owns all the shares of the Schneider Co.  After May 31, the shares will be distributed to 21 Schneider family beneficiaries, according to court records.

The trust has been free to sell the Galt House since March 14, when a Jefferson Circuit Court judge voided a temporary restraining order issued by a probate judge.

But as of Tuesday, there is “no projection at all on a possible closing” of the sale, said Amy Cubbage, a lawyer representing Moseley.

Columbia Sussex, the Northern Kentucky hotel company identified in court records as the potential buyer, did not return a call for comment Tuesday.

The appellate court declined to intervene because Moseley’s sisters Nancy O’Hearn and Christe Coe failed to prove that they would be “irreparably harmed” by the hotel sale, according to the April 19 ruling.

Proceeds from the sale would eventually be distributed to trust beneficiaries, the court said, and Coe and O’Hearn could still sue Moseley and the other trustees if they feel the hotel was sold for a “deflated” price.

The Court of Appeals still has other questions on which to rule, and the two sides are scheduled to appear before Jefferson Circuit Court Judge Mary Shaw on May 4.

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