Pot partners told to split clients, assets

By Mark A. York, Enterprise Staff Writer



Park County District Court on Thursday ordered two partners in a Livingston-based medical marijuana operation to split their clients and assets in three weeks as a first phase in dissolving their business relationship.

Judge Nels Swandal had earlier ordered Homer Terry, whose home contains the inventory of marijuana plants from various growers, to care for the plants at his rented property until a formal decision could be made on their ownership.

The civil trial stems from a dispute between Richard Rosio and Rollin D. Minnick, partners in Caregivers Montana LLC, a medical marijuana supply business.

The rift between Rosio and Minnick developed over the winter while they were arranging a growing operation based in a rented bomb shelter on Aries Drive near Emigrant. He originally hired Minnick as a grower for one-third interest in the company, Rosio said in his Thursday testimony.

Rosio founded the company to supply elderly patients with cannabis. They incorporated in 2007. A third partner withdrew, according to testimony.

Rosio then turned over patient cards to Minnick, who was to supply patients with the medication in the interim while the crop was grown. Rosio said in his testimony he would handle the business end of the operation, including travel to hospitals all over Montana and some delivery of the marijuana to patients who couldn't obtain it any other way.

Rosio said he tried to arrange renting a fallout shelter from Church Universal and Triumphant, but they resisted his offers due to a belief against drug use of any kind. Rosio finally found a shelter owner willing to make the arrangement — Walter Hollensteiner, who was sold a one quarter share of Caregivers Montana LLC.

"The bomb shelter was rotted and filled with filth and disease, " Rosio said on the stand. "It was a dome with a U-shaped room with separate bedrooms. We gutted the room and rebuilt a rotted floor in another 40-foot room, and added solid glass doors.

"It was a unique opportunity to take something that was designed for death and turn it into something healthy and beautiful."

He supplied all of the stock and growing equipment, lights, and hydroponic system for the operation, which grew to 390 plants over the winter, Rosio said.

"The plants were vibrant and beautiful," he said.

Rosio estimated the potential worth of the crop at $250,000 to $350,000.

Minnick said he came back in February from a Florida vacation to many e-mails from patients complaining of being overcharged by Rosio for their medication.

"The business was going broke," Minnick said.

He found that Rosio had written $58,000 in checks to himself, the Web site set up for online sales had been neglected, and he was unable to contact Rosio. In April, Minnick, tired of the commute to Emigrant for which he received no compensation, moved the remaining stock to the East Park Street building. He formed a new company, Caregivers of Montana LLC.

"There were 200 or so plants left," Minnick said. "One hundred and sixty plants were lost to mold and hemaphroditism, which shortens the growth, yield and potency. Twenty plants froze."

On Aug. 13, Rosio tried to take over the building on East Park Street by court order and oust Terry, who sublets space to Minnick, according to court documents.

After court Thursday, Terry said he had no plants of his own at the property at that time.

"Richard (Rosio) thinks there is a lot of money in this business," Minnick testified, "but there isn't."

Minnick's lawyer, Kevin Brown, asked Minnick, "Why?"

"Montana is a land of poverty," Minnick said. "We don't make a lot of money here in general. The patients have even less income, and have to pay as they can afford to."

Judge Swandal quashed a restraining order on the property and ordered Homer Davis, a court-appointed horticulturist, to inspect the crop once a week on Rosio's behalf. A settlement must be reached in 90 days, Swandal said.


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