A Missoula bankruptcy judge has approved a settlement agreement that transfers assets of the former KGEZ radio station to Todd and Davar Gardner.

The Gardners, owners of the Gardner recreational vehicle dealership and auction house in Kalispell, agreed to pay $875,000 for the KGEZ property, its nearby broadcast towers and the radio station license.

Under terms of the settlement, about $787,000 will be distributed by the bankruptcy estate to a series of secured creditors called the Boone Karlberg group. The balance will pay for the bankruptcy proceedings.

The Gardners essentially agreed to reduce from $3.8 million to about $1.5 million a 2008 court judgment they won for being defamed on the air by radio station operator John Stokes, Todd Gardner said Monday.

Gardner said the KGEZ sales price was based on a real estate analysis, and it was more than he and his father wanted to pay.

“The reason we paid it when it was more than what we wanted to pay was to get closure on this,” he said.

The future of KGEZ likely will be decided over the next couple of months, Gardner said.

“Right now we are looking at our options,” he said. “We have people who are interested in buying the license and operating a radio station ... Some folks have talked to us about leasing it and operating a radio station.”

KGEZ and Stokes went off the air in September 2009 when officials seized Stokes’ assets and locked up the radio station as part of the bankruptcy action.

Stokes owned KGEZ since 2000 and hosted a sometimes-controversial daily talk show. He also was known over the years for stunts such as burning green swastikas (emblematic of environmentalists) and hosting events such as shooting at United Nations flags.

Under Federal Communication Commission rules, the station license can expire if it remains “dark” after a year, Gardner said, explaining why the license needs to be activated by mid-September.

In approving the Gardner settlement, U.S. Bankruptcy Judge Ralph B. Kircher also denied a motion that would have allowed Stokes to appeal the judgment for the Gardners to the Montana Supreme Court.

It is unclear whether Stokes will pursue other appeals. He could not be reached for comment Monday.

Stokes initially filed for Chapter 11 bankruptcy protection in March 2009, but that was converted over Stokes’ protests to a Chapter 7 action that essentially requires liquidation of assets to pay debts.

In October 2009, Kirscher said in explaining his Chapter 7 decision that Stokes had failed to accurately disclose his assets, had failed to meet financial reporting requirements, had failed to pay filing fees and had not filed state or federal income taxes for years.

The Gardners’ purchase of the station is the latest chapter in long-running legal disputes between the Gardners and Stokes.

From 2001 to 2005, they were involved in legal wrangling over ownership of the land where the radio-station towers are located. The Gardners and another landowner prevailed in court over Stokes in 2005.

Stokes also criticized and accused the Gardners of wrongdoing for almost eight years during his morning talk radio show, leading to the defamation lawsuit for three broadcast statements Stokes made about them in 2007.

Stokes falsely accused the Gardners of bank fraud, lying under oath and filing false affidavits.

A Flathead District Court jury found that Stokes had acted with malice in making false accusations over the radio, so the jury awarded $3.8 million to the Gardners.

Over the years, Stokes was involved in several other lawsuits — mostly over property and financial issues — and usually lost those lawsuits.

Reporter Jim Mann may be reached at 758-4407 or by e-mail at jmann@dailyinterlake.com.