Billings Dismisses Lawsuit Over Demolished Colonial Apartments Site

The city's legal action against the former owner's estate has been resolved, clearing the way for RiverStone Health to acquire the property.

Apr. 7, 2026 at 10:33pm

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A serene, nostalgic painting depicting the weathered, shadowed exterior of an abandoned apartment building, conveying a sense of the property's troubled past and hopeful future.The dismissal of a lawsuit over the former Colonial Apartments site opens the door for redevelopment, potentially transforming a once-blighted property.Billings Today

The city of Billings has dismissed its lawsuit against the estate of the late former owner John Skauge over the demolished Colonial Apartments, a blighted and crime-ridden property that was recently torn down. The dismissal allows RiverStone Health to finalize its purchase of the site.

Why it matters

The Colonial Apartments had become a public safety hazard, leading the city to file a lawsuit seeking the building's demolition. With the legal issues now resolved, the property can be redeveloped by RiverStone Health, a local health organization, potentially bringing new life to the area.

The details

The city originally filed the lawsuit against the Colonial Apartments, stating the building was a public safety hazard and needed to be demolished. Even after the apartments were torn down a few weeks ago, the case remained open. However, the estate's attorney presented a court filing asking the city to drop the lawsuit, which the city did on Tuesday.

  • The city filed the lawsuit against the Colonial Apartments property.
  • The Colonial Apartments were demolished a few weeks ago.
  • On Tuesday, the city dismissed the lawsuit against the Skauge estate.

The players

City of Billings

The local government of Billings, Montana that filed the lawsuit against the Colonial Apartments property.

John Skauge

The deceased former owner of the Colonial Apartments.

Michelle Ostrye

The attorney representing the Skauge estate.

RiverStone Health

A local health organization that is purchasing the Colonial Apartments site for redevelopment.

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What they’re saying

“I presented a court filing asking the city to drop the lawsuit, which the city did Tuesday.”

— Michelle Ostrye, Attorney representing the Skauge estate

What’s next

With the lawsuit dismissed, RiverStone Health can now finalize its purchase of the Colonial Apartments site and begin planning for its redevelopment.

The takeaway

The resolution of the legal issues surrounding the blighted Colonial Apartments clears the way for the property to be redeveloped by RiverStone Health, potentially bringing new life and improved public safety to the area.