Zelie design firm partners in legal dispute
One partner in Haute Designs of Zelienople claims in a lawsuit that the other partner took $65,000 from the company bank account, changed the lock on the showroom door and changed passwords on the company's accounting software and bank account.
The suit, filed by co-owner Henry David Hall II of Ohio, seeks an injunction against his business partner, Cynthia A. Slayback of Coraopolis, and includes a motion to place the company in the hands of a receiver.
Hall filed the suit last week through his attorney, David Weber, in Butler County Common Pleas Court. The suit seeks a judgment in excess of $35,000 and any other relief the court deems necessary in the interest of justice.
It is in the interest of justice that Slayback be required to refund the amount of money she withdrew without permission, Hall argues in the suit.
Hall and Slayback formed Haute, a kitchen and bathroom remodeling business, in 2019, along with another person who is long affiliated with the company. Haute provides materials and designs to customers and contracts with HDH Installations Inc., which is owned by Hall, to do the installation, according to the suit.
In 2021 Slayback remodeled the kitchen and bathroom in her home using Haute materials but didn't pay Haute, according to the suit.
After an employee told Hall this March that Slayback began taking a commission from company accounts, she told him that she was taking the commission so she could pay Haute for the materials used in her remodeling, according to the suit.
In April Hall said Slayback unilaterally took about $65,000 from the company bank account, leaving about $600; changed the QuickBooks password, blocking Hall's access; changed the online password for the bank account, temporarily blocking his access; and attempted to terminate the employee who told Hall that Slayback was taking a commission. She did not have unilateral authority to take any of those actions, according to the suit.
The withdrawal left Haute with no working capital and unable to pay HDH, vendors and employees, according to the suit. Changing the showroom lock and the QuickBooks password and attempting to exclude Hall from the bank account prevents Hall from monitoring the company's finances and inventory, the suit also states.
Hall's emergency motion to appoint a receiver asks the court to appoint Butler attorney Rebecca Black. A receiver would take possession of all assets and manage the business, according to the motion.
“While it is regrettable that litigation was necessary in this situation, we will hopefully be able to resolve this matter quickly and amicably,” Weber said.
Attorney Ronald Elliott, who represents Slayback, said she did not wish to comment.
Senior Judge Robert Yeatts has been assigned the case.