Suit filed over collapse of flooring company
A man's alleged drug addiction caused a flooring company to undergo bankruptcy and left another partial owner of the company stuck coughing up thousands of dollars in unpaid bills, according to recently filed court documents.
Harold G. Belsheim filed a lawsuit Feb. 14 in St. Clair County Circuit Court against Christopher Winkler and David Jorgenson.
According to his complaint, Belsheim agreed to purchase an interest in Floors Inc. Design Showroom after Winkler and Jorgenson approached him in January 2008.
In return for Winkler's 50 percent interest in Floors Inc. Design Showroom, Belco Flooring would release Winkler from a liability of certain corporate debt he owed to People's Bank, the suit states.
Acting on behalf of the arrangement, Belsheim became a personal guarantor of the debt, but limited the guarantee to $75,000, the complaint says.
At the time he agreed to take an interest in Floors Inc. Design Showroom, Belsheim claims he had no knowledge of Jorgenson's alleged drug addiction. Winkler hid the fact from Belsheim because Jorgenson partially owned Floors Inc. Design Showroom and had been neglecting the business, the complaint states.
"Following the purchase of the 50 percent interest in Floors Design Showroom II, by Belco Flooring the business of Floors Inc. Design Showrooms and Floors Design Showroom II deteriorated rapidly due to the addiction and drug use by David Jorgenson and his neglect of the business," the suit states. "That Floors Inc. Design Showroom and Floors Design Showroom II went out of business, leaving unpaid bills, many of which were paid by Harry G. Belsheim and entities owned and controlled by him."
In his two-count complaint, Belsheim seeks a judgment of more than $100,000, plus punitive damages of more than $1 million and costs.
George R. Ripplinger of Ripplinger and Zimmer in Belleville will be representing him.
St. Clair County Circuit Court case number: 11-L-69.