The developer of Rolling Glen Ranch, which was to be the largest subdivision in Montana, is caught up in two lawsuits with Broadwater County over further development of the project.

At the end of May, Broadwater County filed suit against Steven Cavanaugh, his wife Susan Cavanaugh, Rolling Glen Ranch, and eight other parties who hold liens on Rolling Glen lots in southern Broadwater County near Three Forks. And in June, Cavanaugh filed a countersuit back against the county.

Some of the lien holders, who loaned money to the Cavanaughs and received lots as collateral, have scheduled lot sales beginning Aug. 21.

The county is asking the court to either halt these sales or to order payment of $10,500 to the county from the sale of each lot to meet the Rolling Glen Ranch phases I and II subdivision improvement agreements.

The county alleges that Rolling Glen Ranch Corp. owes the county $258,399 for promised road improvements to Rolling Glen Ranch and Wheatland roads.

Helena attorney Tom Budewitz, representing the county, said the improvement agreements were recorded as liens on lot titles and that the lenders should have been aware of these.

The Cavanaughs were to either improve the roads to county standards or to pay the county $10,500 with the sale of each lot to pay for road improvements, according to the suit.

The agreements, signed Feb. 13, 2006, were to be completed by February this year, according to the suit.

During 2006 and 2007, Cavanaugh used 22 of the lots as collateral for loans, the suit states.

He also transferred two lots to himself or to his corporation without paying the county the required fee, the suit alleges.

The road improvements were a condition of the county granting final plat approval for the 126-lot Rolling Glen Ranch subdivision’s phases I and II.

This subdivision was to be followed by Rolling Glen Ranch Planned Unit Development, a 2,599-lot subdivision that included golf courses, a town center and community water and sewer facilities. The development’s master plan received county commission approval in February 2007.

Then in August 2007, Cavanaugh filed a back-up plan, Rolling Glen Ranch Estates — an 84-lot subdivision — in case he was unable to secure the $15 million in financial backing needed to launch the PUD.

In February the Broadwater County Commission suspended final plat approval of the original RGR phases I and II and preliminary plat approval for Rolling Glen Ranch Estates.

Since then, no lot sales or transfers can take place without county commission approval.

The county’s lawsuit requests a permanent injunction halting any trustee or foreclosure sales of any lots.

If the sales go forward, “we want them to pay us what Cavanaugh was to pay us,” Budewitz said.

In other court action, Steve Cavanaugh filed an amended lawsuit June 9 against the county.

It names not only Broadwater County and the commission, but adds Donald J. Dixson, owner and developer of Mountain Vista Estates, a development near RGR.

The suit alleges that Dixson should have been required to guarantee construction and paving of a share of Wheatland and Rolling Glen Ranch roads as a condition of final plat approval for his subdivision.

Cavanaugh’s suit further alleges that the county commission and county employees made negligent misrepresentations to him regarding the subdivision improvement agreement.

Budewitz said the agreements were drafted by Cavanaugh’s own attorney and therefore should hold no surprises.

“Fritz” Gillespie of Helena, Cavanaugh’s current attorney, replied, “We will deal with that in litigation.”

Gillespie declined further comment, saying, “I don’t try my cases in the media.”

The Cavanaugh suit asks for a jury trial and for the court to declare the county commission’s suspension of the plats null and void.

It also asks that other subdivision developers be required to contribute to Wheatland, Rolling Glen Ranch and Price roads.

And it requests unspecified damages.

No court dates have been set for either case.

Cavanaugh also owes county taxes for two lots for the second half of 2007, which were due May 31, said Broadwater County Clerk and Recorder Rhonda Nelson.

They will be included in the county’s tax lien sale July 16 if the taxes aren’t paid, Nelson said.

Click here to see a previous article on Rolling Glen Ranch lawsuit against Broadwater County.

Reporter Marga Lincoln: 447-4074 or marga.lincoln@helenair.com