Man sues longtime business partner
The part owner of a St. Charles-based safety controls manufacturer is suing his partner, alleging he created a separate company to siphon business and profits behind his back.
Gary Kovac, who lives in Pennsylvania, filed the lawsuit in Kane County last month, charging Kenneth Barron engaged in "oppressive and fraudulent" conduct.
Each is a director and 50-percent stockholder of Pinnacle Systems, Press Room Electronics and Triad Controls, all under one roof in St. Charles.
Kovac's suit argues that Barron formed a separate company, Repair Services, in April 2003. In March 2007, it notified customers that the company would now be performing repairs and maintenance on equipment sold by the three other companies.
Before that, Pinnacle, Press Room and Triad would perform and charge for repairs for items they sold.
Kovac's suit says Barron has refused to communicate with him or allow him access to business records since June 2007.
"Barron also has instructed the employees of all three corporations not to communicate with plaintiff," the suit states.
Kovac also alleges Barron has destroyed purchase orders and short-changed salespeople their commissions. He wants an injunction to keep Barron from erasing or destroying further business files and records.
Kovac wants a full accounting of Repair Services' books, punitive damages for wrongful conduct, and attorney fees. His attorney, Michael Denker, declined further comment this week.
Barron does not face any criminal charges.
A woman who answered the phone at Pinnacle said Barron had no comment.
Russel Winick, Barron's attorney, would not comment on specific allegations made by Kovac.
But he added: "There's quite a bit in (the lawsuit) that's factually incorrect."
Winick said the pair had been business partners for 27 years and he hoped they could reach an amicable solution out of court. If a settlement was not possible, Barron would deny the allegations and offer counter-arguments of his own.
"These kinds of cases are never pleasant, they're never cheap," Winick said. "It's an unfortunate situation and we're hoping to resolve it quickly."
Both sides are due in court Jan. 8.