Widow Gets $1M For Junkyard Seized By Gov't

The end of the line has come for a St. Louis condemnation case involving a woman named Opel Henderson, her 50-year-old downtown junkyard business and a handful of West County businessmen.

Now it appears someone is on the hook to pay Henderson a $1 million judgment, plus interest.

Henderson and her husband operated a salvage yard along South Broadway near downtown since 1947. After her husband died, her sons began working at the yard. Henderson paid property and business taxes plus she and her sons paid city earnings taxes.

As one might expect over the years while operating a salvage yard, they picked up a few code violation citations, but for the most part she was running a successful business.

In 2004, three limited liability corporations were formed that would appear to have some impact on Henderson’s life.

The Ice House District Redevelopment, LLC, was formed, involving Town and Country Mayor Jonathan Dalton. He was the registered agent and noted on his bio at the Lewis-Rice law firm that he was on the board of directors. Ice House’s address was the same as the law firm of Lewis-Rice where Dalton is a partner. The purpose of this LLC was to develop a nightclub area along South Broadway.

Papers creating the Brio Group, LLC, were filed with the Missouri Secretary of State in September 2004. Dalton was the resident agent and this company’s address was the same as Dalton’s law firm’s office. Dalton is a one-third partner in Brio.

A third LLC, French Market Development, was a 50-50 partner with Brio in the Ice House District Redevelopment group.

Also formed in 2004 was the Disper-Schmitt, LLC. The filing lists Daniel Schmitt of Naples, FL, as the organizer and Cindy Schmitt of St. Louis as the agent. In 2004, the same people behind Disper-Schmitt created Old Rock House, LLC. The Disper of Disper Schmitt is Gerald Mark Disper of Ballwin.

Limited liability corporation filings are different from regular corporation filings. With regular corporations, a listing of board members is required, as are the filings of annual reports. Nothing is required of LLCs other than a resident agent and an address. It can take some real detective work or court-ordered depositions to figure out who is who.

Immediately after forming as a LLC, Disper-Schmit bought property next to Henderson’s salvage yard with plans to open a bar.

All the LLC filings occurred at about the same time the City of St. Louis Board of Aldermen declared the area around Henderson’s salvage yard as “blighted.” The city’s land clearance authority appointed Ice House District Redevelopment, with Dalton as its agent, as the redeveloper for the area.

In 2006, the city moved to condemn Henderson’s property through the city’s Redevelopment Authority. Things get confusing as articles appear in the St. Louis Business Journal and the St. Louis Post-Dispatch claiming different persons are leading the redevelopment of the Ice House District. The Business Journal quoted Dan Schmitt as being “the principle developer” of the Ice House District, but also mentioned Dalton, Disper and realty company owner Mark Librach, who is from Creve Coeur.

Two months later, Jake Wagman of the Post-Dispatch wrote an article where Dalton is quoted as one of the developers. "There could be a bright future for this city and it doesn't include the continued operation of a junkyard," Dalton was quoted in the article.

By 2007, Henderson is represented by attorney Chet Pleban. They appeal the city condemnation of the property and the case goes to the Missouri Supreme Court. By this time, the city’s Redevelopment Authority is represented by Lewis-Rice, Dalton’s law firm.

Pleban claims all the West County development groups are behind the condemnation action against Henderson’s business. But the case was brought by the Redevelopment Authority.

The authority wins in the Supreme Court and Henderson loses her business. However, Pleban sues in St. Louis Circuit Court alleging her property was improperly and fraudulently taken through eminent domain at the hands of the city’s Redevelopment Authority.

In April 2010, the jury finds against the St. Louis Land Authority and for Henderson and awards her $1 million. 

That verdict was appealed and in late November, the Court of Appeals upheld the $1 million verdict and tagged on $89,000 in interest penalties. A spokesperson for the city tells the Post-Dispatch that Disper-Schmitt is on the hook for the judgment. Who that exactly is I'm not sure. That's the trouble with LLCs.

Editor’s note: An earlier version of this column was removed; it has been redrafted and edited to address inaccuracies in the characterization of the Ice House project and the roles of various players in the case.