WCAL-FM advocates ask court to void deal that begat MPR’s The Current

By Chris Steller
Thursday, September 25, 2008 at 7:10 pm

CORRECTED AND UPDATED  Advocates for the former WCAL-FM public radio station have filed a petition (pdf) asking the Rice County District Court Sept. 25 to declare the station’s $10.5 million sale to Minnesota Public Radio void.

SaveWCAL wants the court to return the money to WCAL’s charitable trust, along with the fund’s $3 million endowment and the building the trust constructed on the St. Olaf College campus in Northfield, Minn. The group also wants St. Olaf removed as trustee for liquidating the station’s charitable trust without judicial approval.

In pointing out an error in the original version of this post (see below), a Minnesota Public Radio representative wrote that MPR “is confident that there is no legal reason for a judge to void the sale of WCAL. As for St. Olaf and the sale proceeds, we are not involved in that portion of the hearing.”

CORRECTION: This article, as originally posted on Sept. 25, misattributed a quoted phrase as coming from a June 9 order by Rice County District Court Judge Gerald J. Wolf (pdf). The quoted words were not Judge Wolf’s but instead came from a June 12 letter written by SaveWCAL to the state attorney general. The Minnesota Independent regrets the error.

Further clarification after the jump.

The quoted words did not, however, originate with SaveWCAL. They originated in American Jurisprudence, a legal encyclopedia, as quoted by SaveWCAL in its letter — a letter which in other places also quotes from Judge Wolf’s order.

Here is the sentence from American Jurisprudence as quoted in SaveWCAL’s letter: “Where the trustees of a charitable trust have no power under the trust instrument or under an order of a court of equity to convey such property, a deed made of such property is void and subject to cancellation upon application of proper parties.” (The last 10 words of the sentence are those mistakenly attributed to Judge Wolf’s order regarding MPR and WCAL in the original version of this post.)

As MPR pointed out in its request for a correction to this post (see below, in comments section), Judge Wolf’s June 9 order actually states, in the first sentence of the introduction: “The Court recognizes that the sale of WCAL is neither before the Court at this time nor has it ever been before the court.”

Indeed, Judge Wolf reserved his criticism not for MPR but for St. Olaf and especially the state attorney general’s office. He concluded his order’s introduction with this:

The only watchdog looking out for the interests of the trust in this case was Respondent, the non-profit organization SaveWCAL. SaveWCAL raised the alarm when they first learned of the sale of WCAL by St. Olaf, but neither St. Olaf nor the Minnesota Attorney General’s Office paid any heed to SaveWCAL’s warning.

Now, the Court is faced with a plethora of issues to unravel in the aftermath of St. Olaf’s unapproved sale of WCAL and the Minnesota Attorney General’s Office’s breach of its duties in this case.

Here are links to MnIndy’s earlier posts related to the MPR/St. Olaf deal for WCAL/The Current, which themselves contain links to original documents as well as to news coverage elsewhere:

Donors’ group demands AG act to void deal that created MPR’s The Current (June 13, 2008)

Judge finds WCAL-FM, station now ‘The Current,’ was St. Olaf trust (June 11, 2008)

Hatch’s lack of concern for charitable trusts predated WCAL dustup (May 29, 2008)

‘Screwed’ again: Piper Jaffray fined for violating ban after improper T-Paw donations (May 16, 2008)

Kick a Man When He’s Down (For the Count) (July 6, 2007, third item)

Alternating Current? Lawsuit Aims to Void WCAL Sale (June 14, 2007)

Comments

4 Comments

Sperry
Comment posted September 26, 2008 @ 11:38 am

One has to wonder who, exactly, is behind this push to eliminate The Current. Perhaps an investigative reporter (if one still exists) could delve deeper into the murky depths of SaveWCAL.

I suspect that if one looks deeply enough, one will find the fingerprints of both large communications companies who oppose the popular music station and anti-public radio groups.


Margaret Ann Hennen
Comment posted September 26, 2008 @ 4:55 pm

We ask that Minnesota Independent make a correction to its post,” WCAL-FM advocates ask court to nullify deal that begat MPR’s The Current.”

Minnesota Independent’s Chris Steller mistakenly attributes a quote to Rice County District Judge Gerald J. Wolf. (The quote is in relation to a case between SaveWCAL and St. Olaf College this past summer which Judge Wolf decided.)

Judge Wolf’s order in that case did NOT include the following statement: “MPR’s deed to WCAL assets is ‘void and subject to cancellation upon application of proper parties.’” That statement was contained in a letter from SaveWCAL to the Minnesota Attorney General last June. It represents the opinion of SaveWCAL and not that of Judge Wolf.

In fact, Judge Wolf wrote, in the memorandum supporting his order in that earlier case: “The Court recognizes that the sale of WCAL is neither before the Court at this time nor has it ever been before the court.”

It is, of course, the right of SaveWCAL to promote its view, but Minnesota Public Radio is confident that there is no legal reason for a judge to void the sale of WCAL. As for St. Olaf and the sale proceeds, we are not involved in that portion of the hearing.

In the spirit of fair and accurate journalism, we ask that Minnesota Independent reporters contact us, as well as their other sources, when they are verifying information about this matter.


Ruth Sylte (SaveWCAL)
Comment posted October 8, 2008 @ 8:36 am

SaveWCAL is appreciative of the clarification and correction issued by Chris Steller and the Minnesota Independent — and for their coverage of the WCAL story.

Commenter “Sperry” will be sorely disappointed to hear that there is no push — nor has there ever been — on the part of SaveWCAL to “eliminate The Current”.

Our organization’s efforts are to protect and defend the WCAL Charitable Trust — which includes ALL the assets of that trust — pre- and post-sale — including the broadcast license and the Rosemount broadcasting tower.

The fact that those essential assets that formerly belonged to the WCAL charitable trust are now being used by MPR for the purposes of broadcasting KCMP is completely irrelevant to our efforts. It wouldn’t have mattered what entity had “bought” WCAL or whether the assets were being used by KCMP, KSJN, KNOW or some other entity (including any Christian broadcasting networks). SaveWCAL would have engaged in the same effort regardless of the buyer or the designated user.

It is also absolutely laughable to think that anyone will find “fingerprints of both large communications companies who oppose the popular music station and anti-public radio groups” in SaveWCAL’s efforts — because there are none to find.

This is truly a story about thousands of donors to a successful National Public Radio station whose trust was betrayed by a shamelessly greedy trustee — and who are asking the court for accountability.

If “Sperry” would take the time to read about it on our web site (http://savewcal.net), s/he would find that the WCAL story has plenty of “murky depths”, attempts to “eliminate” another public radio station (WCAL) and the fingerprints of a large communications organization. Yes, all the elements are there. It’s just that the major players in the drama are not the ones that Sperry wants them to be. But you can’t change the facts.

The story will certainly continue to unfold. Stay tuned.


DK
Comment posted October 10, 2008 @ 10:36 am

Poor Sperry is so caught up in the Current time that he is blinded to history.
The large communication company with murky depths is MPR — Sperry probably doesn’t know what Bill Kling, his wife and friends at the top of the MPR/APM/…-corporate-conglomerate actually earn annually from his “donation” to “public” radio.
Sperry probably doesn’t realize the Market research that went into identifying him as a target hip-but-wealthy future-MPR-donor listener for the Current.
Nor that MPR had an AM wavelength prior to going on air with the Current, but worked behind the scenes to eliminate its Classical competitor, WCAL, buy purchasing its FM wavelength and using it instead.
The “Current” indeed.
We disregard history to our cost.
It’s a dirty wavelength you’re listening on, Sperry. Enjoy the music.


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