Gaw explains library receivership process

Wood Place Library is located at 501 S. Oak St., California.
Wood Place Library is located at 501 S. Oak St., California.

With the agreement of the parties, Special Judge Donald Barnes on March 28 named retired Tipton attorney H. Ralph Gaw as the receiver in the Moniteau County Library District case.

Barnes made the appointment in a two-page order that noted his 11-page, Feb. 21 order had dissolved the district, making a receiver necessary to "administer and liquidate the assets of the district."

Barnes ordered the library district's dissolution after determining it had been created illegally, because a majority of the county's voters in 1997 voted against adding a proposed property tax to pay for district operations.

Before his appointment, Gaw said he had not followed the library issue and its litigation - begun in October 2015 - closely. Nor had he been involved in any way with either of the library subdistricts in Tipton and California.

"I was an outsider; I think it worked out better that way," Gaw said. "I had not preconceived an outcome in mind of who was 'right' or 'wrong.'

"It helps me be more fair."

But Gaw may have to learn the receiver's job while he pursues the job - because the state law for public receiverships is seldom used, so there are few cases to compare the library case with.

He said the statute regarding receiverships recently was revised, providing more guidance.

In his March 28 order, Barnes told Gaw to take control of the library district's property, and gave Gaw "the power to liquidate said property," as allowed by state law, as well as the power to "employ any of the professionals as may be needed to assist (him) in carrying out his duties."

Gaw is to file a monthly report on his work "until further order of the court."

Barnes also ordered the district "to provide a schedule of all known creditors and property of the Moniteau County Library District" as of the March 28 order.

Gaw said the goal is the equitable division of the library district's assets.

The legal notice about the receivership said the estate property consists of cash, real property and miscellaneous personal property.

About $166,000 in assets have been accounted for, so far.

Anyone having a claim against the district must file a proof of that claim with Gaw, as receiver, by Friday, May 19.

Once all of the claims have been received, Gaw will prioritize them following the eight categories set forth in the state law. Then he will present them to Barnes for review.

Once approved, the prioritized claim list will be announced - but that list can be challenged, and those challenges will be received and reviewed.

Barnes will make the final determination on asset dispersals.

Gaw said: "I will be as fair and complete as I can be" in assembling the claims list.

He hopes the process will be finished by October.

Gaw said if more assets remain at the end of the process, after all claims have been filed and determined, Judge Barnes will decide what to do with the remainder.

Individual taxpayers likely do not qualify for a claim, Gaw clarified.

The law states that protests of a tax must be made in writing at the time the taxes are paid.

"The public shouldn't have a complaint; they got the services they were paying for," Gaw said.

Those who may have legitimate claims might include employees, taxing entities or contractors.

"The law is about resolving disputes," Gaw said. "If parties can't do it, a third party gets to do it.

"I don't think this case is different from any other contested matter."

He can be reached at 573-378-8936 or [email protected].

"These are all good people at heart," Gaw said. "I hate to see good people get into it over things."

Gaw graduated with his law degree from the University of Missouri in 1969. He served in the U.S. Army, with a tour in Korea.

From 1971-2009, Gaw operated a law practice in Tipton doing a variety of "country law" cases. He later focused on government law, personal injury and medical malpractice suits.

He represented the city of Tipton for about 40 years - but no longer represented the city when it became a plaintiff in the lawsuit against the library district.

Gaw represented Versailles for 14 years.