Just yesterday, Lee Qualm filed paperwork to run for an open seat in his Legislative District after being turned out of office a few years back. But it hasn’t been the only battle he’s found himself being involved in with people who know him all too well.
In June of 2020, after a strong campaign by newcomer Erin Tobin, outgoing House Majority Leader at the time Lee Qualm found himself soundly defeated in the race for State Senate by a 2-1 margin. Counted among Tobin’s supporters was State Senator Lee Schoenbeck, who after the 2020 election was on the fast track to run for the highest office within the Senate; President Pro Tempore.
In 2022, less than 2 years later, Qualm found himself back doing battle with people being supported by Senator Lee Schoenbeck. Except this was in Schoenbeck’s non-legislative role, as one of South Dakota’s leading litigators. And in this instance, attorney Lee Schoenbeck was representing Lee Qualm’s own family as they brought suit against Lee and Trudy Qualm for allegations of converting shares of the corporation owned by Qualm’s parents into their names.
This formed the basis of the lawsuit filed in June of 2022; Lynn Qualm, Doreen Qualm, Joel Qualm vs. Lee Qualm, Trudy Qualm, L. Qualm & Sons, Inc.
Lee Qualm Conversion Lawsuit by Pat Powers on Scribd
The allegations contained in the lawsuit are somewhat shocking, as they claim an alleged scheme by the former leader of House Republicans in the legislature and his spouse to transfer stock into their own names.
The lawsuit alleges that annual corporation board of directors meetings ceased in about 1998. And starting in 2013, were said by the lawsuit to have put in place rules which transferred shares upon the death of minority shareholders.
By the time that the stock transfers came to the attention of Qualm’s family members and the lawsuit was filed, Lee Qualm had already assumed a majority ownership of the holdings through transfers, seemingly without paying. As noted in the lawsuit, the stocks were transferred “for no consideration,” violating the family members’ due process rights, and was “attempted conversion.” And demand was made for the former Majority Leader and his wife to restore shares to the estates to Luvern and LaVonne Qualm.
Another familiar name, Jon Hansen, a legislator and former Majority Whip under Qualm’s leadership in the House represented Qualm’s side in the matter. Also brought on to represent Qualm in the lawsuit was an attorney familiar with litigation unlike Hansen; Ron Parsons, a respected former US Attorney for South Dakota.
Lee & Trudy Qualm, of course, denied the allegations of conversion, and responded accordingly to the lawsuit filed by the Qualm family members (which you can read in the lawsuit above). To which Qualm’s family members further pressed their case in response, noting ..
By now, the intra-family lawsuit had continued on through August of 2022, and notices of deposition had started to be issued as the plaintiffs sought answers to some pointed questions regarding their concern over how Lee Qualm found his way from owning some stock into a position of being the majority owner.
The notices of deposition went from September through November of 2022, and then something interesting happened.
The lawsuit went away and was dismissed by the plaintiffs in February of 2023. And about the same time, there were notices filed with the court regarding the distribution of the parent’s estates.
Now, some of the accounting with the parent’s estate is sealed by the court, and what isn’t sealed may be worthwhile reviewing at a later date. But if we’re to believe the voluntary dismissal by the parties, it appears they’ve resolved their differences. Maybe. I’m not sure this lawsuit is the stuff that makes people want to get together at the holiday table afterwards.
I mean, if you can’t trust your family member who was the majority leader of the House of Representatives, who can you trust?
That might also be a question for voters to ponder in June.
Lawsuits among family members I’d imagine are the worst and incredibly painful.
Between this and the Olson story the SD gossip blog is on fire today!
I have serious “qualms” about anyone willing to steal from their family like that.
Wasn’t there a commandment about all of this?
You have to give credit to Jon Hansen for giving the case to Parsons. I don’t think Hansen has ever stepped foot in a courtroom.
Not to mention the behavior of his [redacted..]
(okay, I have to pull you back on this one. Unless you can directly cite or more preferably link to a source, I’ve got to play editor. Especially if that person isn’t a public figure or candidate for office, or involved in the campaign. I don’t doubt you, but let’s keep it to the conduct of the candidate as we discuss their suitability, or utter lack thereof for office. – PP)