SILVERTHORNE - A pending lawsuit could potentially throw a wrench in the process for anyone hoping to develop Smith Ranch.

Denver-based lawyer Murray Ogborn sent a letter to Silverthorne community development director Mark Leidal in late May, notifying him of a pending lawsuit between his client, Hallmark Companies, LLC and Smith Ranch owner Seminole Land Holdings, of which Tom Garvin is the president.

According to the letter, Hallmark Companies and Seminole Land Holdings entered into a purchase contract on Jan. 31, 2004, stating Seminole Land Holdings wouldn't enter into any contract or sale agreement of the property without written consent from Hallmark Companies.

Therefore, Hallmark has a legal right to acquire the property "which right is the subject of pending litigation," Ogborn wrote.

"We respectfully suggest that any contract to purchase the property or any annexation application cannot be legally pursued without my clients' prior written consent," Ogborn wrote.

According to town of Silverthorne attorney Jerry Dahl, the town will continue annexation proceedings with Seminole Land Holdings, which it knows to be the owner of Smith Ranch, until it hears otherwise from a court of law.

If a judge rules that Hallmark Companies, LLC is the rightful owner of the land then the town would discontinue negotiations with Seminole Land Holdings.

Dahl said that the town wouldn't want to sign a final annexation deal with the lawsuit still pending, but that he suspects the two companies will have the ownership issue figured out before the annexation petition is heard again in six months.

Hallmark Companies, LLC filed a breach of contract lawsuit against Tom Garvin and Seminole Land Holdings in Summit County District Court on Sept. 2, 2005. The case is scheduled for its next review on Sept. 15.

Leidal said the town has never received a development application from Hallmark Companies, LLC for the Smith Ranch.