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Marsh defense: Travel was integral to company success

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Without membership in certain international business organizations, Don Marsh says he could not have built his grocery chain into a billion-dollar company.

His frequent trips overseas were so integral to the success of Marsh Supermarkets Inc., he claimed in testimony Thursday morning, that when his lawyer in his civil trial asked him to rate the meetings on a scale of 1 to 10, Marsh didn’t hesitate when replying “10.”

“I couldn’t have run the company without them,” he said.

Marsh’s testimony on cross-examination in his civil trial revealed part of his lawyers’ strategy to convince jurors that the frequent trips the former CEO of the locally based grocery chain took on the company jet were for business and not pleasure.

Marsh Supermarkets is suing Marsh, 75, alleging that he used company funds to pay more than $3 million in personal expenses during part of his time as CEO until after the company he led was acquired in 2006.

Don Marsh belonged to several global organizations, including the World Presidents Organization, Chief Executives Organization, World Economic Forum, American Arbitration Association and American Management Association.

One such organization took him to Berlin for a speech he gave in 1989 at the time the Berlin Wall fell, he told the jury.

While Marsh Supermarkets never operated stores outside of Indiana, Ohio or Illinois, Don Marsh traveled around the world to such wide-ranging destinations as Cuba, India, Libya, Russia and Venezuela in hopes that the Marsh brand could gain market share in those countries.

In Russia, for instance, Marsh private-label products were sold in Russian grocery stores for a short time until Don Marsh said he “pulled the plug” after he couldn’t compete with cheaper, Chinese projects.

Russia is where he met the director of the Russian ice ballet, with whom he had an affair. Marsh put her up in a New York City apartment as he considered sponsoring the tour in the United States.

When asked by his lawyer what bearing his physical relationship had on his idea to bring the ballet to the United States, Marsh replied: “None.”

The affair was one of four extra-marital relationships Marsh has admitted to during this week's ongoing testimony.

He also flew to Libya a handful of times in an attempt to open a distribution center in the country to serve “mom and pop” stores, he said. Marsh’s sale to Sun Capital Partners in 2006 interrupted the project, which Don Marsh said had the support of former U.S. Sen. Richard Lugar.

Florida-based Sun Capital Partners terminated Don Marsh’s contract “without cause” after it took over, then stopped paying his $4.2 million severance in early 2008, after it claims it discovered personal expenses charged to the company.   
 
Don Marsh is countersuing Sun Capital, claiming it still owes him about half of his severance.

Meanwhile, Don Marsh’s attorney, Andrew McNeil, presented evidence Thursday morning regarding the various condominiums either Don Marsh or the company owned or leased.

A rental agreement for a condominium in the Dominican Republican, documented in a 1996 company directors meeting, showed the condo registered to the company.

Marsh said he used it as motivation for employees who “hit certain incentives” to vacation there. He also would take workers, as well as customers, who won contests, on cruises to tropical destinations such as Tahiti.

Less glamorous were plane flights to his condo in Saugatuck, Mich., along the eastern shore of Lake Michigan, where he would take various employees every year to pick their brains about the company in a relaxed atmosphere.
 

The IBJ is a sister publicatio of Indiana Lawyer.

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  1. I will continue to pray that God keeps giving you the strength and courage to keep fighting for what is right and just so you are aware, you are an inspiration to those that are feeling weak and helpless as they are trying to figure out why evil keeps winning. God Bless.....

  2. Some are above the law in Indiana. Some lined up with Lodges have controlled power in the state since the 1920s when the Klan ruled Indiana. Consider the comments at this post and note the international h.q. in Indianapolis. http://www.theindianalawyer.com/human-trafficking-rising-in-indiana/PARAMS/article/42468. Brave journalists need to take this child torturing, above the law and antimarriage cult on just like The Globe courageously took on Cardinal Law. Are there any brave Hoosier journalists?

  3. I am nearing 66 years old..... I have no interest in contacting anyone. All I need to have is a nationality....a REAL Birthday...... the place U was born...... my soul will never be at peace. I have lived my life without identity.... if anyone can help me please contact me.

  4. This is the dissent discussed in the comment below. See comments on that story for an amazing discussion of likely judicial corruption of some kind, the rejection of the rule of law at the very least. http://www.theindianalawyer.com/justices-deny-transfer-to-child-custody-case/PARAMS/article/42774#comment

  5. That means much to me, thank you. My own communion, to which I came in my 30's from a protestant evangelical background, refuses to so affirm me, the Bishop's courtiers all saying, when it matters, that they defer to the state, and trust that the state would not be wrong as to me. (LIttle did I know that is the most common modernist catholic position on the state -- at least when the state acts consistent with the philosophy of the democrat party). I asked my RCC pastor to stand with me before the Examiners after they demanded that I disavow God's law on the record .... he refused, saying the Bishop would not allow it. I filed all of my file in the open in federal court so the Bishop's men could see what had been done ... they refused to look. (But the 7th Cir and federal judge Theresa Springmann gave me the honor of admission after so reading, even though ISC had denied me, rendering me a very rare bird). Such affirmation from a fellow believer as you have done here has been rare for me, and that dearth of solidarity, and the economic pain visited upon my wife and five children, have been the hardest part of the struggle. They did indeed banish me, for life, and so, in substance did the the Diocese, which treated me like a pariah, but thanks to this ezine ... and this is simply amazing to me .... because of this ezine I am not silenced. This ezine allowing us to speak to the corruption that the former chief "justice" left behind, yet embedded in his systems when he retired ... the openness to discuss that corruption (like that revealed in the recent whistleblowing dissent by courageous Justice David and fresh breath of air Chief Justice Rush,) is a great example of the First Amendment at work. I will not be silenced as long as this tree falling in the wood can be heard. The Hoosier Judiciary has deep seated problems, generational corruption, ideological corruption. Many cases demonstrate this. It must be spotlighted. The corrupted system has no hold on me now, none. I have survived their best shots. It is now my time to not be silent. To the Glory of God, and for the good of man's law. (It almost always works that way as to the true law, as I explained the bar examiners -- who refused to follow even their own statutory law and violated core organic law when banishing me for life -- actually revealing themselves to be lawless.)

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