The Marburger Farm Dairy family has filed a defamation of character suit in Butler County court that is related to the former Freeway Lanes on Route 19 in Jackson Township.

Jim Marburger and his daughter, Carrie Robb, say Jim Kennihan of Zelienople Investment defamed them by suggesting last year at a shareholders meeting of the investment corporation that the Marburger family misappropriated corporation money.

According to the lawsuit, in July 1968 the Marburger Farm Dairy became actively involved with the corporation at the request of a bank in Evans City that asked the dairy owners to guarantee loans given to the corporation. The purpose of the loans was to establish and operate Freeway Lanes.

The Marburger family also made several loans to the corporation over the years, and became actively involved in running the bowling hall.

About three years ago, the corporation decided Freeway Lanes would never be able to generate enough revenue to repay the Marburger family loans. It was decided to sell the property and the liquor license to recoup part of the money.

A contract was created for an individual to buy the property at a June 3, 2013, meeting attended by shareholders.

The defamation lawsuit alleges Kennihan at that meeting accused Marburger and Robb of misappropriating money from the corporation in front of shareholders.

In addition, the lawsuit said Marburger and Robb discovered in January that the corporation hired a forensic accountant to check if misappropriation occurred.

The lawsuit alleges, among other items, that:

• Kennihan’s accusations found their way to several employees at the dairy and individuals in the corporation, where Marburger and Robb were officers

• Kennihan said the reason for the forensic accounting was that funds had been misappropriated by Marburger and Robb

• Kennihan’s accusations could deter third parties and organizations from associating and dealing with the Marburger family personally and professionally.

Also, several bowling alley employees and the Marburgers filed for Chapter 11 bankruptcy in June 2013. That case is still pending in Pennsylvania Bankruptcy Court.

Marburger attorney Douglas Linn said Kennihan’s attorney requested the defamation case be removed from county court and included in the bankruptcy case now ongoing in bankruptcy court because it is impacting the corporation’s business plan.

Linn said the move is a delay tactic and that it could take weeks or months for the case to be moved back to county court.

“There is no doubt in our minds that it was an improper removal,” Linn said. “We have made a motion to remand it back to the Common Pleas Court.”

Linn, who is not involved in the bankruptcy case, said the judge will decide the award amount if the ruling in the defamation case is in the Marburger family’s favor.

He said that amount would exceed $35,000.

Chris Cafardi, attorney for the Zelienople Investment Corp., said Kennihan never made any defamatory statements at the June 3 meeting. Cafardi said he was one of six people at the meeting.

“We think the accusations are completely baseless and false,” he said.

Regarding the action to have the defamation case moved to bankruptcy court, Cafardi said he expects it to be returned to Common Pleas court in a few weeks.

Freeway Lanes has been closed for more than a year.