PSA: Beware National Barn Company Northeastern Division

[gypsymare]

This is turning into a nightmare. I already put a deposit down on a barn and two and a half months later nothing is started. My main sales contact is not answering his phone and the rest of the staff is being evasive. We finally got in contact with the national owner who said that this division of the franchise may be filing for bankruptcy and he knows of at least 40 others currently waiting for projects to start and 15 alone had called him in the last 3 days. He advised us to hire a lawyer. This is the division out of Hanover, PA. RUN away from this company!

Has anyone been in this situation? Any reccommendations for lawyers who would handle this kind of representation in Central Maryland?

So frustrated right now :mad:

[js]

Since it’s a national business with regional offices, Why isn’t the head office taking care of seeing the customers are taken care of? Makes the whole company look bad. I had a barn built by their Southeast office, took about 2 months to get on their schedule, they built a great barn at a good price, they messed up on the roof color and never got back to us on what happened, that said I still ended up with a great barn. When I was researching the company there were some negative reviews of the NE office. Good luck resolving your situation, I would get a lawyer now and let them initiate trying to get your money back.

[clanter]

do not know of an attorney there but here my attorney ended up from a free Morton barn after their local office attempted to screw him.

He was proudly showing the work in progress which included fill dirt; he commented that they had brought in 100 loads of dirt, he showed the haul bills… I showed him he could not have had that much dirt hauled in as the cubic yardage just wasn’t there… even if it had just been 3 yard trucks

After an engineer’s report to back up my observation he confronted Morton who at first denied the engineer report.

Things were not going well at all after I pointed out that their “haul bills” showed the fill was brought in from Oklahoma (which is just across the Red River) … which would take the matter out of State Court into Federal Court

Morton ended up paying a settlement that exceeded the cost of the barn.

[cssutton]

You have a real problem.

Under bankruptcy law, the company can not return your money if they know for a fact that they are going to file…

Even if they do not know, as I recall there is a period of 60 days, could be 90, that any money returned to a creditor will have to be returned by that creditor to the bankruptcy court.

In other words, suppose they paid you in the morning. If they file 60 or 90 days later, whichever, you will get a bill from the bankruptcy court that you will not ignore.

My guess is that your best bet is to get a good bankruptcy attorney and see if he can pin it on the home office. Otherwise, you will be in the unhappy position of waiting until the court liquidates their assets and that money will then be divided by the number of creditors according to their claims.

I am not an attorney, but for 56 years I sold heavy equipment with big price tags and have been to bankruptcy court several times to collect from bankrupt buyers.

Luckily I beat the system. The fact that I had an asset that I could seize worked in my favor, an advantage you do not have.

So although my comments might be a little rough around the edges, they are correct on the basics.

Another clue: My attorney tells me that very few attorneys understand bankruptcy law. Be sure you get one who does.

[DHCarrotfeeder]

I would send a certified letter looking for a refund on your deposit.

It’s never a bad idea to report them to the state attorney general in PA and maybe also in MD.

PA takes their contractors requirements quite seriously and if you act cleanly you should have good recourse.

[gypsymare]

I have heard now that they are not even licensed to build in MD, that the owner was using the previous owner’s license number. Someone else already won in small claims court but was able to get their money back since they paid with a credit card and disputed the payment. We’re banding together on a facebook page and the woman who won the lawsuit graciously gave me her phone number so we could talk about it tomorrow!

[msj]

OP, good luck and I hope you do get this resolved ASAP and get all of your money back.

[clanter]

As a word of caution to those who have barns recently built by that company/division… you might want to request copies of payment for the materials and subcontractor labor used to build the structure.

Here a vendor has 180 days to file a lien on the property. Even thought you have made full payment to contractor they may (most likely in this ponzi scheme) have not paid sub-contactors or material vendors … who can file a lien on the property.

In OP situation… were any of the contracts or contacts done by using US mail??.. then it is a different level (hugher) of a federal offense

[js]

What is the law pertaining to franchises and bankruptcy? Can the parent company be held responsible? OP you really need to get a lawyer at this point. Also, just wanted to comment, that in our case we were not asked to pay any monies until we were 2weeks from them coming to build. It was not there policy to pay up front before even be scheduled with a firm date. (We are well past the 180 days)

[DHCarrotfeeder]

[QUOTE=clanter;7758861]
As a word of caution to those who have barns recently built by that company/division… you might want to request copies of payment for the materials and subcontractor labor used to build the structure.

Here a vendor has 180 days to file a lien on the property. [/QUOTE]

I would definitely do this. The subcontractors can leave you stuck using these liens and if the main contractor completely flakes out and has no assets to seize you’ll end up paying for both.

[cssutton]

[QUOTE=DHCarrotfeeder;7759158]
I would definitely do this. The subcontractors can leave you stuck using these liens and if the main contractor completely flakes out and has no assets to seize you’ll end up paying for both.[/QUOTE]

So you will get a letter from them saying they paid.

Whether they have or not.

So how much better off are you?

Might as well wait and see what happens.

If the bankruptcy court pays them, or a percentage of their bill, you would owe only the balance due.

In any case, it appears to me that one might as well wait until the dust settles.

However, if your attorney says to write such a letter, do it.

[JanM]

You should get confirmation from any contractor that they paid the subs. That was one reason that when I was rebuilding my house, the contractor either had me pay some subs direct, or else he gave me a copy of the paid bill. Most of the work was done by my contractor’s framing or regular crew, but if he hadn’t paid anyone then a mechanic’s or workman’s lien could have been filed, and I would have been on the hook.

[gypsymare]

An update, the owner, Lowell Thomas was arrained today on 6 felony charges. He posted bail an I have my court date on November 3rd. He is STILL accepting contracts!!

This is a nightmare!

[Texarkana]

[QUOTE=gypsymare;7821658]
An update, the owner, Lowell Thomas was arrained today on 6 felony charges. He posted bail an I have my court date on November 3rd. He is STILL accepting contracts!!

This is a nightmare![/QUOTE]

I’m so sorry you are going through this gypsymare! What a headache!

Is Lowell Thomas the owner of the entire company or just the NE division? Just curious because the eastern division headquarters is located one town over from me. They’ve been advertising some amazing deals… probably too good to be true… I sure appreciate the heads up that they have MAJOR issues in some of their divisions before I consider them!

[Hulk]

[QUOTE=gypsymare;7821658]
An update, the owner, Lowell Thomas was arrained today on 6 felony charges. He posted bail an I have my court date on November 3rd. He is STILL accepting contracts!!

This is a nightmare![/QUOTE]

Seriously? this is why I am on COTH. DH wanted to build an indoor by himself. I was thinking about having a builder do it, because he is no spring chicken. Guess I had better let him build it if I want one. Thank you for the PSA.
Sorry about your troubles, I wish you well.

[Zu_Zu]

How terrible ! Thanks for the information ~

:eek:

How terrible ~ thanks for this information ~

Jingles this turns around in a ‘refund’ way soon ~

[gypsymare]

[QUOTE=Texarkana;7821934]
I’m so sorry you are going through this gypsymare! What a headache!

Is Lowell Thomas the owner of the entire company or just the NE division? Just curious because the eastern division headquarters is located one town over from me. They’ve been advertising some amazing deals… probably too good to be true… I sure appreciate the heads up that they have MAJOR issues in some of their divisions before I consider them![/QUOTE]

Lowell is just the owner of the Northeast Division in Hanover, PA. I have heard nothing but good things about the other divisions and Jeff Christian has been extremely helpful and supportive (original owner). Sam Lamberth is the Tennesee division President and has also been helpful in prosecuting Lowell. They don’t want to see their good company name dragged trough the mud.

There isn’t much more the parent company can do, they are trying to strip Lowell of the franchise name but court cases take time and Lowell isn’t giving in easily.

[gypsymare]

[QUOTE=Hulk;7821983]
Seriously? this is why I am on COTH. DH wanted to build an indoor by himself. I was thinking about having a builder do it, because he is no spring chicken. Guess I had better let him build it if I want one. Thank you for the PSA.
Sorry about your troubles, I wish you well.[/QUOTE]
Thank you!! This whole experience has taught me that my next property will be MOVE IN READY. I’m not dealing with all of this BS again!!

[KJLUTON]

Used NB 3 years ago and it was a NIGHTMARE then!!

[QUOTE=gypsymare;7822127]
Thank you!! This whole experience has taught me that my next property will be MOVE IN READY. I’m not dealing with all of this BS again!![/QUOTE]

There is a very large case against Lowell Thomas and the NE division of National Barn underway in PA. They are trying to find as many victims as possible, if you are a victim please call Detective Merwede of Penn Township at 717-637-8751.There will also be a Sherriffs Sale on 15 JAN at National Barn in Hanover, PA to sell off equipment, etc to raise money for victims.

I had a barn built by this crook 3 years ago and it is a piece of crap, I look at it everyday and hate it!!!

[tangledweb]

I know nothing about them but I see their assets seem be being sold off
https://www.facebook.com/media/set/?set=oa.617340078372540&type=1