Business Deal Turns Sour at Old Apple Barn
The recent sale of the roadside icon pits one family against another in the court
The future of the iconic roadside emporium, The Old Apple Barn in High Rolls Mountain Park, is in limbo after its recent sale unraveled in a dispute between the new and former owners.
Bill and Beverly Niffenegger, the previous owners and founders of the Apple Barn, filed a civil complaint on January 21 against its new proprietors, Jerry and Carol Shulman of Texas.
Niffenegger is asking the court for an emergency temporary restraining order and the appointment of a receiver to oversee the property and business while they and the Shulman family litigate their differences.
A Temporary Restraining Order Hearing is set for 9 a.m. Tuesday, February 18, before Judge Daniel A. Bryant in the Ruidoso Magistrate Courthouse. You should be able to remotely view the proceedings by clicking this link: https://meet.google.com/xxb-hyad-gce
Closed (For Now?)
The Old Apple Barn has remained closed for business since the third week of January.
What began as a seemingly turn-key transaction between friends has devolved into a legal battle set to play out in Otero County’s 12th Judicial District Court. The civil complaint against the new buyers alleges “breach of contract, waste, fraud, [and] foreclosure of mortgage.”
In court documents obtained by The Reader, Niffenegger claims only to have received a fraction of the agreed-upon down payment, and they have not received a monthly loan payment since August of 2024.
Last summer, the property and business were sold to the Shulman family in an owner-financed deal valued at $3.5 million. In an interview last August, Hunter Niffeneger, former manager and Bill and Beverly’s son, estimated the Apple Barn hosted fifty to sixty thousand visitors annually. The sale would transfer the business from its founders to one of its longtime vendors.
Jerry Shulman, his wife, and his triplet sons and daughter run Texas Toy Distribution, an import and wholesale company based in Bryan, Texas. The company supplies toys to museum gift shops and stores around the country and outfitted the Apple Barn with much of its inventory before and during the sale.
Under the original purchase agreement facilitated by an agent with Future Real Estate who represented both the Buyer and the Seller, Shulman agreed to make a $500,000 down payment toward the Apple Barn. That money would be split into two payments, the last due by mid-January. They would also pay Niffenegger $17,033.67 a month until the place was paid off. The total of $3.5 million with interest was due within thirty years.
However, according to Niffenegger’s civil complaint filed by his attorneys Robert David Humphreys and Lucius James Wallace of Santa Fe, Shulman and his newly formed limited liability company, Old Apple Barn NM LLC, paid only $150,000 toward the down payment. The $17,033.67 monthly payment was later lowered to $14,000 per month. Still, the lawsuit alleges that Shulman has not made a monthly payment in over five months.
These nonpayments and recent actions by the Shulman family constitute the crux of Niffenegger’s legal complaint.
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Receivership and TRO
Niffenegger's attorneys applied for “emergency relief” to the court on January 23. In it, they ask the judge for a temporary restraining order (TRO) to prevent further loss of assets and changes to the property.
Eyebrows were raised when forklifts and trucks arrived at the Apple Barn a few weeks ago. Employees were seen loading plastic bins onto semi-trailers. Before then, customers noticed nearly empty shelves inside the emporium.
Grainy black-and-white images of the moving operation are included as exhibits in the court documents. Hunter captured many of them as the Shulman family and employees loaded inventory in the parking lot to be presumably shipped out of state.
“We are completely out of the Apple Barn,” said Jerry Shulman during a recent phone call. “We took our inventory and there’s plenty of inventory left in there.”
Both parties signed off on numerous addendums as part of the purchase agreement. The deal included inventory, equipment, furnishings, brand material, graphics, labels, a website domain, and social media pages, among other materials crucial to continuing the business.
However, an addendum signed by both parties also states, “Should the Buyer default on the seller financed loan, an equivalent amount of inventory (approved by Seller) shall remain.”
Niffenegger seems to fear that removing inventory could jeopardize the family’s chances to recover their losses, as some of the business's value is tied to the items it sells. A restraining order could prevent the Shulman family from packing more items, though they have already left the property.
A request for the “appointment of a receiver” has also been made to the courts. If granted by a judge, it would allow a third party to manage the property while the parties litigate.
The Reader contacted Russell Warren, an attorney with RSW Law Firm based in Santa Fe, who confirms he represents Shulman. He said he looks forward to responding to the complaint once the court officially serves and summons Shulman. As of Friday morning, February 7, Warren says Shulman has not been served.
Back-and-Forth
Before the lawsuit, both parties communicated extensively through their respective attorneys. Carefully crafted claims of misrepresentation were emailed back and forth.
A letter sent to Niffenegger’s attorney last November from Russell S. Warren of the Santa Fe-based RSW Law Firm, representing Shulman, claims there were undisclosed problems with the property that Shulman did not discover until after the sale. It alleges the sellers did not act in “good faith.”
Niffenegger refutes these claims.
A section of the purchase agreement, signed by both parties, reads, “Buyer acknowledges that the Buyer is acquiring the property based on Buyer’s review and inspection. Buyer is acquiring the Property ‘AS IS’ and ‘WITH ALL FAULTS.’“ They also allege that Jerry Shulman and his family had ample time to inspect the business before their agreement.
Attempt to Pierce the Corporate Veil
Based on The Reader’s analysis of the court filings, attorneys for Niffenegger may look to hold the Shulman family directly responsible for the breach of contract outside of the defendant’s LLC, which would offer them more protections should a judgment be levied against them.
“A search of the New Mexico Secretary of State’s business entity database found no such partnership registered to conduct business in New Mexico. Defendant Shulman executed this document without indicating that it was in any capacity other than his capacity…” reads the civil complaint.
The state database does show that Old Apple Barn NM LLC filed as a registered business on April 24, 2024. The LLC lists Shulman as the managing member, with his wife and adult children as members.
Typically, the burden of proof to find an individual liable for damages outside their company can be challenging to establish.
Headed to the Auction Block?
It appears the Old Apple Barn will remain shuttered until the parties or the courts resolve the dispute.
The court filings briefly mention the possibility of a public auction of the property. The plaintiffs ask the judge to order such a sale in a long list of requests.
“Plaintiff’s further request that the Court appoint a Special Master to oversee the foreclosure process and ensure compliance with applicable laws and procedures, including conducting a public auction of the Property,” reads the latest complaint filings.
“We love the place, and we’re hopeful to see it continue, but right now, it’s a pending legal case with them [the Shulman family],” said Hunter Niffenegger during a phone call with the Reader after the civil complaint was filed.
The Old Apple Barn and its large Apple Boy figurine have greeted tourists on their way up or down the mountain for twenty years. The main building dates back to the early 1940s and was used by local farmers to ship their produce via railroad. The barn-turned-emporium attracted tourists with toys, novelty gifts, homemade pies, fudge, cider, and ice cream.
“Well, I don’t think it’s good for anybody. It’s always better when people get along. Obviously, the more tourism you have on the mountain, the better off all of us are,” says James Cadwallader, who operates nearby Cadwallader Mountain Farms and shares a property line with the Old Apple Barn.
This is a developing story, and The Reader will continue to report on the case.
To dig deeper…
You can retrieve all the documents filed in court for this case in two different ways—these are public documents.
First, email aladresearch@nmcourts.gov and request the documents for case number D-1215-CV-202500055. You will receive a zip file containing everything filed, typically within 24 hours.
Second, you can access the documents and court docket via reSearchNM. This website provides access to court records for all 33 New Mexico counties.
Search for case D-1215-CV-202500055.
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