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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. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

  2. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  3. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  4. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

  5. Justice has finally been served. So glad that Dr. Ley can finally sleep peacefully at night knowing the truth has finally come to the surface.

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