The Historic Flight Foundation is closed to the public, but the organization is still hosting scheduled, private events in the Felts Field hangar in which the aviation museum is located.

Meantime, the fate of the museum appears to hinge on the results of a court ruling in coming days in a case in North Dakota.

John Sessions, founder of the Historic Flight Foundation, says the closure is temporary, and he’s hoping to reopen to the public on Aug. 28, three days after a scheduled court date regarding a motion to vacate a judgment against the nonprofit, Sessions, and some of his other business holdings.

“We’re looking forward to welcoming folks back very soon,” Sessions says.

Spokane-based nonprofit Historic Flight Foundation, located in East Spokane, at 5829 E. Rutter, is one of six entities owned by Sessions that were named in a lawsuit brought by UMB Bank NA, of Kansas City, Missouri.

In addition to the Historic Flight Foundation, the suit also names Sessions as an individual as well as Eagle Crest Apartments LLC, a real estate company he owns that’s based in Coupeville, Washington; Spokane-based Bakken Housing Co. LLC, a real property investment company; Historic Hangars LLC, of Seattle; Spokane-based transportation and warehousing company FWF Ltd.; and Orkney Air LLC.

Eagle Crest Apartments is appealing the judgment issued by the state of North Dakota Supreme Court awarding over $21 million in favor of UMB Bank.

The action stems from the city of Williston, North Dakota, which sold bonds to secure funding for the construction of the Eagle Crest Apartment complex, through a loan issued by UMB Bank, according to court documents on file with the District Court of Williams County, in North Dakota.

UMB Bank sued Eagle Crest Apartments and Bakken Housing Co. for breach of contract and foreclosure, and the district court gave the bank a partial summary judgment in favor of its foreclosure claim.

The apartment site was purchased by UMB at a sheriff’s sale for $25 million, after which the bank amended its complaint to add claims of fraudulent transfers, deceit, and exemplary damages against Bakken, Historic Flight Foundation, Historic Hangars, FWF, and Orkney Air, court filings show.

Court documents state the court found UMB had presented a valid legal theory for including Sessions’ other businesses in the lawsuit under a corporate veil-piercing claim.

Corporate veil piercing means corporation owners lose limited liability protection, and their personal assets can be used to satisfy business debts and liabilities, according to the definition used by the Washington state Legislature.

UMB Bank alleged in the lawsuit that Sessions used his corporate entities for his own individual dealings, that their accounts were treated as one continuous flow of funds, and that through fraud, Sessions emptied the coffers of Eagle Crest to put fuel in his planes, prop up his failing businesses, and visit luxury hotels, which harmed investors, bondholders, and the city of Williston.

A jury determined that all of the defendants were “alter egos” of each other and of Sessions. The jury also found that the defendants—except for Historic Hangars and Orkney Air—committed fraudulent transfers of $2.9 million and conspired to commit deceit.

A judgment of $20.13 million in favor of UMB was awarded against all the defendants, piercing the entities’ corporate veils. Additionally, a $902,185 judgment against Sessions and another against Historic Flight Foundation for $303,728 were awarded to UMB by the district court, filings show.

The defendants appealed the judgment and argued that the district court shouldn’t hold all defendants jointly and severally liable claiming that they were unfairly surprised. The claim states only Eagle Crest was aware that the judgment would apply to that entity and that Sessions’ other businesses were unable to defend themselves.

However, the judgment states that the defendants were notified of UMB’s claim against them in its final amended complaint. The judgment was upheld by the court, since the defendant companies didn’t offer a persuasive explanation as to why, as alter egos of Eagle Crest Apartments, they also shouldn’t be held responsible.

Sessions declines to discuss the case as he awaits the late-August hearing that will determine whether the judgment against the Historic Flight Foundation will be vacated.

Sessions says the Historic Flight Foundation is continuing to hold its scheduled events while awaiting the court hearing.

“We’re being low-key until a hearing on Aug. 25,” he says.

Former executive director of the Historic Flight Foundation, Sheila Geraghty, says she was shocked to learn of the museum’s closure.

Geraghty is now executive director at Northeast Youth Center, in Spokane, which has a day trip to the vintage aircraft hangar planned for today, Thursday, Aug. 17.

She says, during her time at the foundation, where she worked from March 2021 to August 2022, she was one of two employees.

Geraghty says the majority of work at the foundation was done by about 30 volunteers.

Sessions says that in addition to several summer camp field trips to the vintage aircraft museum this week, about 1,400 people will be attending two events—a wedding and a charity fundraiser the weekend of Aug. 19-20. The following week, a series of STEM-based events for classes are planned, followed by another wedding and a retirement celebration.

Annual inspections and aircraft maintenance are ongoing for the foundation’s 16 planes, he adds.

Sessions says the Historic Flight Foundation isn’t selling any of its aircraft, but some of its planes that were loaned to the nonprofit and owned by a different company are for sale.

Redondo Beach, California, aircraft broker, Platinum Fighter Sales, has five planes from the museum’s collection listed for sale on its website, including the notable North American B-25D Mitchell dubbed Grumpy.

A representative of Platinum Fighter Sales declines to comment.

An attorney at Gordon Rees Scully Mansukhani, representing the receiver, also declines to comment.

The Historic Flight Foundation has 24,000 square feet of indoor hangar space where vintage aircraft from a period of time between the two world wars known as the Golden Age of Flight are on display for public and private events.

Geraghty says it would be a loss to the community for the Historic Flight Foundation to close its doors permanently.

“It’s a great location, and it has the most majestic, beautiful planes. … It’s a moving museum, and I was so thankful and thrilled that I was able to fly in the Stearman while I was there,” says Geraghty, referring to the Stearman Model 75, a biplane with a fixed tailwheel undercarriage that was commonly used as a military training aircraft in the 1930s and 1940s.

“It was probably one of the top five greatest days of my life,” she says.