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Judge Crow rules shareholder is entitled to $3.3 million of Saltco's $78 million value A circuit judge has ruled in favor of a minority shareholder of a large timber company owning 40,966 acres of land in Choctaw and Washington counties and awarded him his pro rate share of the company, just over $3.3 million. Edward Walters grew up in Clarke County. He said his grandfather, C. W. Holder, was a cofounder with M. W. Smith of M. W. Smith Lumber Co. in Jackson. MWS Land Company grew out of the old lumber company and in 1999 some of the MWS shareholders spun off a new company, South Alabama Land & Timber Co. (Saltco) with holdings in Choctaw and Washington counties. Walters said Monday that other Saltco shareholders wanted to change the company to a "Sub S" corporation and he didn't think that was in his best interest. Saltco alleged that Walters breached his fiduciary duties to Saltco and Walters filed a counterclaim for a declaration of his rights as a Saltco shareholder. The matter was tried as a nonjury case before Circuit Judge Harold Crow in Choctaw County Circuit Court during the summer of 2006. Judge Crow ruled in an order dated Friday that Walters did not breach his fiduciary duties to the company and that his actions as a Saltco director did not damage the company. Judge Crow ruled that Walters was entitled to a "fair value" of his interest in Saltco as of Dec. 31, 2003 and that he was entitled to his 4.3 percent interest in the company. The net asset value of Saltco as of Dec. 31, 2003 was set at $78,365,541 and Walters' share was determined to be $3,314,117.17. Judge Crow determined that "credible evidence" established Saltco's bare land value at $727 per acre and its premerchantable timber at $833 per acre. Judge Crow further ordered that Saltco be responsible for the legal fees and expenses incurred by Walters due to the litigation. That was determined to be $649,830.65, a reasonable amount, according to Judge Crow.
Judge Crow has retired but kept a few cases that were still pending before him, including this one.
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