Serge d'Elia and Clint Schuler, developers of the defunct 303 restaurant in downtown Casper, and related family members and businesses have dropped their legal challenges against each other, according to a dismissal of the case by U.S. District Judge Alan Johnson on Nov. 5.

Schuler and d'Elia legally battled over the upscale eatery at 303 S. Wolcott that closed April 1.

"The parties have been involved in litigation since 2005 and after extensive litigation and legal fees incurred by all, wish to settle the issues raised in the matter now pending in the United States District Court," according to the motion filed by d'Elia's attorney Judith Studer and Schuler's attorney Tom Sedar.

Likewise, d'Elia ended his separate challenge of Schuler's 2005 Chapter 7 bankruptcy filing, according to their request to dismiss the case approved in late October by Wyoming U.S. Bankruptcy Judge Peter McNiff.

The conclusions quietly ended the relationship begun in the late 1990s with d'Elia wanting to develop about 85 unimproved lots in the Sunrise Hills subdivisions in south Casper and giving Schuler's contracting company the right to build them. As the homes were completed, Schuler would receive the money to begin the next project.

In December 2003, they created 303 with d'Elia owning the former Prairie Publishing building and Schuler contracting to renovate the first floor for a restaurant and two other floors for office or other space. The upper level would become the Elixir's Bar.

The next year, their relationship began to sour.

Schuler claimed construction costs rose after d'Elia hired a chef who insisted on extensive design changes.

In June 2004, d'Elia stopped financing the residential construction projects and forced the Schulers under duress to sell their 50 percent stake in the 303 project, Schuler said.

Meanwhile, Schuler used d'Elia's credit cards to buy materials to continue the 303 renovation, d'Elia said.

The restaurant opened in late 2004.

As the renovation dragged on and costs mounted, the relationship fractured even more.

D'Elia went to the Casper Police Department with allegations Schuler charged $890,000 on the credit cards without authorization, and the investigation led to the District Attorney charging Schuler with six counts of fraud in May 2005.

After a mistrial in March 2006, a jury found Schuler guilty on one count and acquitted him of the rest. Schuler received a suspended jail sentence and was placed on three years probation.

Schuler, with his wife Plezana Sh'Lee, also headed Thunder Publishing, which produced the now defunct "Wyoming Homes and Living Magazine." Also in late 2005, the Schulers filed for bankruptcy, declaring nearly $1.9 million in assets and nearly $4.1 million in liabilities, according to their voluntary petition.

The legal wrangling took a stranger turn when d'Elia challenged the bankruptcy in January 2006. Because Schuler defrauded him and had undisclosed property in Arizona, he should not have his debts forgiven, according to d'Elia's challenge.

In October 2008, the Schulers and their bankruptcy trustee Randy Royal sued d'Elia for breach of contract, failure to pay for the renovation work, coercion, fraud and other issues. This lawsuit started in Natrona County District Court and was transferred to federal court where it ended last week.

The Schulers and d'Elias agreed to pay $40,000 to Royal, which released the d'Elias from liability, according to the settlement.

"Resolution of this long and extensive litigation is not predicated on the defendants admitting liability," according to the motion to dismiss the case. "It is predicated on ending long, complicated and expensive litigation."

Reach Tom Morton at (307) 266-0592, or at tom.morton@trib.com.