Jeffrey Soffer/Republic Crane Conflict 

Republic Tower Equipment Found in Texas

June 25, 2010

A Linden-Comansa tower crane with “Republic” markings on the cab was spotted earlier this year working on a construction project at the University of North Texas (UNT) at Dallas (see picture to the right).

CraneWatchdog.com acquired a set of pictures taken in April 2010 showing the tower crane, along with a mobile hydraulic crane with “General Crane USA” markings on the construction site (see picture below).

The “Republic” markings on the tower crane suggest that the crane is owned by General Crane affiliate Republic Tower & Hoist, LLC, based in Las Vegas, Nevada.

As previously reported on this site, Republic Tower is embroiled in an internal lawsuit where one of the company owners, Turnberry developer Jeffrey Soffer, is suing the rest of the company management, including General Crane owner Jim Robertson, for allegedly misappropriating company funds, withholding financial documents, and liquidating company assets without proper consent.

Mr. Soffer also asserts that Mr. Robertson and his fellow co-defendants have “moved millions of dollars worth of Republic Tower’s crane and hoist and other equipment across state lines and have given possession of that equipment to third parties.”

At this time it is unclear if Mr. Soffer’s allegation refers to the “Republic”-marked crane at UNT Dallas. The next court hearing for the Soffer lawsuit is set for mid-July in the Clark County, Nevada courthouse.

The general contractor for the UNT Dallas project is Hunt Construction. Earlier this year, General Crane was working on another Hunt project – the construction of the Florida Marlins new baseball stadium in Miami. General Crane had erected a Linden 8752 tower crane on the Marlins stadium construction site. However, third-party crane inspectors found numerous “deficiencies” with the crane, including welding failures that weakened the pins at the base of the crane.

When an OSHA investigator visited the site the investigator found a red tag posted on the crane stating: “DO NOT OPERATE THIS CRANE.” The OSHA official noted that the crane was “pending to be dismantled as per Hunt Moss request” (Moss is the joint venture partner with Hunt). General Crane’s tower was ultimately removed from the project and was not replaced, even as construction remains in full swing.

CraneWatchdog.com will continue to report on developments affecting General Crane and other affiliate companies, including Republic Tower.

Addendum: On June 28, 2010, Republic Tower officer Ray Bellamy wrote an email to CraneWatchdog.com concerning the June 25, 2010 update titled, “Republic Tower Equipment Found in Texas.” Mr. Bellamy stated the following: “the crane ‘found in Texas’ does not belong to Republic Towers & Hoist, it belongs to General Crane. It was previously leased by Republic for a project in Las Vegas, and upon its return to Texas the “Republic” decals were not removed prior to the installation in Texas.”

 

Court Fight between Robertson, Soffer
Continues in Las Vegas

June 16, 2010

Jim Robertson and Jeffrey Soffer reportedly held a 3:00 PM meeting yesterday to discuss pending litigation that has created a rift in their Las Vegas crane company.

One month ago Mr. Soffer, a 50% owner of the Vegas crane outfit Republic Tower & Hoist, LLC, sued his company partners, including Mr. Robertson, who were charged with running Republic’s day-to-day operations. The suit, filed in Clark County, Nevada, cited multiple examples of mismanagement and misconduct by Robertson and his fellow defendants including a failure to pay creditors, unauthorized attempts to liquidate corporate assets, misuse of company equipment, missing cash potentially totaling nearly $20 million, and finally the defendants “deliberate withholding documents” in an attempt to hide misconduct.

The meeting between Mr. Robertson and Mr. Soffer was disclosed by Mr. Robertson’s attorney during yesterday’s court hearing. The hearing concerned a motion for a temporary restraining order and preliminary injunction filed by Western Crane & Hoist, LLC (Mr. Soffer’s entity that holds the 50% stake in Republic). The restraining order and injunction sought to preclude Mr. Robertson and his co-defendants from withholding company documents as well as to prevent the defendants from exercising managerial control of the company without authorization from Mr. Soffer.

Representatives from CraneWatchdog.com attending the hearing reported that the defendants, previously without counsel, had recently retained representation from the law firm Peel Brimley, LLP. On June 11 the defendants issued an opposition to the plaintiff’s motion, arguing that Mr. Soffer’s case was too vague and overbroad.

During the hearing the plaintiff’s attorney noted that his client (Mr. Soffer) became aware of financial problems at Republic when he received a demand on an overdue loan to the company. The plaintiff’s counsel further noted that when Mr. Soffer’s agents sought information on Republic’s financial situation they encountered resistance and received only partial information from Mr. Robertson and the defendants. For instance, when Mr. Soffer’s accountants finally received access to Republic’s electronic QuickBooks financials the defendants reportedly did not provide all passwords to get all the files. The plaintiffs still do not have all the hard copy financial documents, as well.

The defendant’s attorney argued for a continuance, based on the fact that he had only days to review the case.

At the conclusion of the hearing the judge issued a temporary order stating that Mr. Robertson and the defendants must arrange a time when the plaintiffs can have full access to Republic’s books and records, including making the QuickBooks files fully available. The judge issued a continuance on the rest of the plaintiff’s motion, pushing the next hearing back to mid-July. She further stated that clients from both parties must appear before her at a future date in July.

CraneWatchdog.com will continue to report on this case as new events unfold.

 

Federal Court Issues Default
against Republic Tower

June 9, 2010

Yesterday a U.S. district court issued a “clerk’s default” against Republic Tower & Hoist, LLC for failing to appear in a federal lawsuit where it was named as a defendant.

On April 16, 2010, equipment financer Comerica Leasing filed a complaint in federal court alleging that Republic Tower, along with affiliate American Crane & Hoist Erectors, LLC, failed to make payments on loans totaling over $3.3 million. American Crane is cited for guaranteeing Republic’s loans with Comerica.

During the next fifty days representatives for both Republic Tower and America Crane & Hoist failed to make a formal appearance in court. Comerica, in turn, filed motions on Friday, June 4 requesting a clerk’s entry of default against both defendants citing both companies for “failure to plead or otherwise defend.”

The following Monday, June 7, the court entered the Clerk’s Issue of Default against both companies (Republic and American). A clerk’s default could result in the awarding of a default judgment against the defendants.

This latest development comes in the midst of numerous legal troubles for Republic Tower & Hoist. On June 1, 2010, a Miami-Dade County judge issued a Writ of Replevin against Republic allowing De Lage Landen to repossess equipment cited as collateral in an earlier loan agreement, including: six (6) Linden Comansa cranes and eight (8) Alimak hoists.

De Lage Landen originally sued Republic on March 30, 2010, alleging that the crane company had defaulted on a loan agreement with outstanding principal totaling over $2 million. The Writ of Replevin was granted with no opposition from Republic Tower & Hoist.

Republic Tower & Hoist is also currently in an internal legal battle. On May 12, 2010, Jeffery Soffer, who holds a 50% stake in Republic Tower, filed suit against Southwestern Tower Crane & Hoist (which holds the remaining 50% stake), Republic Tower, Jim Robertson, and Raymond Bellamy for alleged gross mishandling of funds – citing as much as $19.7 million in missing cash – and mismanagement of company equipment. This case is still pending in Clark County court. To date, the defendants in this case have not appeared in court to address these accusations.

According to corporate records, Republic Tower & Hoist is controlled by General Crane owners Jim Robertson, Jason Retterath along with Steven Retterath (through corporate intermediary Southwestern Tower Crane & Hoist) and Turnberry real estate mogul Jeffery Soffer (through corporate intermediary Western Crane & Hoist). Affiliate company American Crane & Hoist Erectors, LLC is controlled by the same principals without the intermediaries.

Follow litigation against Republic Tower, General Crane USA, and other affiliate companies at CraneWatchdog.com’s litigation section.

 

Jeffrey Soffer Sues Jim Robertson
in Vegas Court

May 24, 2010

A new lawsuit in Clark County, Nevada has exposed discord within the Las Vegas crane outfit Republic Tower & Hoist, LLC.

Turnberry real estate developer Jeffrey Soffer, a partner in Republic Tower, is suing his fellow company partners, including Jim Robertson of General Crane USA, alleging millions of dollars in missing funds and improper transfers of company cash.

Mr. Soffer reportedly controls a 50% stake in Republic Tower through a company called Western Crane & Hoist, LLC (the plaintiff in the lawsuit). The ownership team of Mr. Robertson, Jason Retterath and Steven Retterath set up an entity called Southwestern Tower Crane & Hoist, LLC to own the other half of the Las Vegas crane company.

In addition to naming Mr. Robertson as a defendant in the lawsuit, Western Crane also names as defendants Southwestern Tower Crane, Republic Tower & Hoist, and Raymond Bellamy.

According to the Western Crane (ie, Soffer) complaint, Mr. Robertson and Mr. Bellamy run the day-to-day operations for Republic Tower.

In January 2010, Western Crane “became suspicious of possible misconduct by Republic Tower’s officers.” Subsequently, Western Crane retained an accounting firm to review Republic’s financial records. Following numerous failed attempts to contact Republic officials, Western Crane sent a demand letter stating that their firm would arrive on January 21, 2010 to examine company records.

Western Crane attests that the defendants, including Mr. Robertson, did not provide Republic’s complete books and records as required by the company operating agreement. In February, Robertson and Bellamy reportedly sent Western Crane’s accounting firm a flash drive that included the company’s QuickBooks accounting files. The defendants, however, “did not supply any of the supporting documents along with the QuickBooks files.”

As of the complaint filing Western Crane claims that it still has not received full access to Republic’s books. The company further alleges that the “defendants are withholding documents in an attempt to hide Southwestern Crane's, Robertson's and Bellamy's misconduct.”

Among the alleged misconduct, Western Crane put forth the following assertions:

Regarding the final allegation, Robertson’s reported $61,900 money transfer from Republic to General Crane occurred in the month leading up to General Crane’s bankruptcy petition.

Western Crane also claims that that Robertson and Bellamy violated Republic’s operating agreement by failing to pay creditors. Indeed, in recent months two creditors (De Lage Landen and Comerica) filed multi-million dollar suits against Republic, alleging that Republic defaulted on a combined $5.4 million in outstanding debt. Republic Tower has not yet responded to the Comerica suit, filed on April 16, 2010.

The Western Crane complaint lists a total of nine claims for relief against the defendants, including “breach of contract,” “breach of good faith and fair dealing,” “breach of fiduciary duty,” and “negligence.”

Western Crane seeks a temporary restraining order and preliminary injunction preventing Robertson, Bellamy and their agents “from exercising managerial authority over Republic Tower,” and “from conducting any Republic Tower transaction without the oversight and express approval of Western Crane.”

Mr. Robertson’s business relationship with Mr. Soffer and Turnberry dates back to the early 2000s. In an August 2008 court deposition Mr. Robertson referred to numerous Las Vegas projects for his client and partner, Turnberry. Mr. Soffer’s most ambitious venture in Las Vegas, the Fontainebleau casino utilized Republic Tower cranes and hoists. However, last year banks cut off financing for the project, forcing Mr. Soffer to file for bankruptcy protection. To date, multiple Republic Tower Linden-Comansa tower cranes stand idle at the stalled construction project.

Republic Tower partners Jim Robertson and Jason Retterath are co-owners of Gulfstream Crane, LLC (aka General Crane USA). Gulfstream remains in Chapter 11 bankruptcy proceedings. In addition, the company is in the midst of a court battle with crane manufacturer Linden-Comansa America in which Comansa has alleged that Gulfstream agents stole approximately $1 million worth of crane parts. Learn more about litigation affecting General Crane USA and its affiliate companies, including Republic Tower, at our Litigation page. CraneWatchdog.com will continue to report on this lawsuit and others as they unfold.