Phil Krouse says he is fighting to save his family farm in the Applegate Valley before the Jackson County Sheriff's Department auctions it off Monday morning.
The Krouse Ranch, first established by his family in 1924, has been the subject of an intense debate over a gravel-mining operation that has set off disputes with neighbors in recent years, sometimes leading to confrontations.
Now, a $900,000 judgment that Krouse owes to Bridgeview Winery over a lease on a field of grapes on his property and other debts have brought him to the brink of financial collapse.
Krouse, 68, said he suspects the Cave Junction-based winery, owned by Bob Kerivan, is plotting to take over his 240-acre property — a claim Kerivan denies.
"They think they can just take it for nothing — that was his goal," said Krouse.
Kerivan declined to discuss the lawsuit against Krouse or the details of the case involving leasing about 28 acres to grow Riesling grapes. He said he understands Krouse's situation, but Kerivan said his actions have been conducted purely on a business basis.
"I don't have any unkind words for him," he said.
Kerivan said he was essentially chased off the property by Krouse, and the vineyards ended up dying because no one could care for them.
He said he only wants the money awarded to him after a jury trial in Josephine County.
"I'm not interested in the Krouse Ranch at all," he said. "I hope I don't get it."
An auction is scheduled for 10 a.m. Monday at the sheriff's department, 782 W. Eighth St., Medford, to sell off Krouse's property, but Krouse said he plans to declare bankruptcy today or Friday to delay the sale.
"It gives me some time to get on my feet and come up with a plan," said Krouse.
Standing next to his horse corral, Krouse said he first came to the property as a baby in 1941, living in a small house. He also runs cattle on the ranch at 15877 North Applegate Road.
In the distance, the vineyards that were part of the Bridgeview lease appear dead.
Krouse said the grapes died because the soil is poor. "You couldn't raise hell on it with a fifth of whiskey," he said.
Krouse points to another area where he has tried, but has been thwarted in his efforts, to mine gravel after neighbors challenged the operation.
He blames newcomers to the valley whom he said don't respect another man's right to earn a living off his property.
"All the liberals moved to the country and they think they own the place," he said.
Just a few miles down the road, Bridgeview has a tasting room and other vineyards growing bright green — in stark contrast to the plants on the Krouse Ranch.
According to the lawsuit, filed in Josephine County Circuit Court in 2005, Krouse Ranch Inc. and Bridgeview Vineyards Inc. formed K & K Vineyards to grow grapes on Krouse's land.
Bridgeview representatives said they invested $500,000 in grape plants, labor costs and lost future profits.
The suit states Bridgeview provided four promissory notes to Krouse Ranch to fund K & K Vineyards. The notes amounted to $294,629, plus interest and other charges.
Another three promissory notes made to Krouse Ranch totaled $66,353, plus interest and other charges, according to the suit.
Krouse Ranch was in the news in recent years over a proposal to excavate 514,000 tons of rock from a 20-acre gravel pit on the property. A Jackson County hearings officer denied Krouse's application in December 2007 after ruling that neither a traffic plan nor a floodplain study for the site was adequate. The gravel pit had been approved by the county but the initial decision was appealed by an owner of the nearby Wooldridge Creek Winery.
Jamie Ford, a neighbor of Krouse's who also objected to plans for gravel mining, said that while neighbors have had their differences over some issues with Krouse, they don't want to see him lose his farm.
"I don't think there is a person who doesn't feel terrible about this — what's happening to him," Ford said.
But Ford also said some neighbors are worried about Krouse's behavior, particularly after one woman he talked to complained Krouse had fired a shot over her head. The Jackson County Sheriff's Department report on the Sept. 10 incident indicates it couldn't contact the person who initially made a report against Krouse.
"We live in America where we have the right to voice our opinion, and we did nothing other than follow legal challenges," said Ford of the neighbors' fight against the gravel mining. "We shouldn't feel we should live in bodily harm if we spoke up."
Ford said he and other property owners were concerned about the effects of a gravel mining operation on the Applegate River.
"The river's an unsteady thing," he said. "That would put my property in danger from a huge mine above me."
Krouse acknowledges he's had run-ins with others who he said don't respect his property rights.
A veteran, Krouse said he suffers from post-traumatic stress disorder and takes medication. He said he doesn't like people interfering with what he views as his rights.
"There are people who better hope that I take my happy pill," said Krouse.
Reach reporter Damian Mann at 776-4476, or e-mail dmann@mailtribune.com.
