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Small claims, breach of contract complaints filed against Fargo contractor Studs to Rugs

FARGO-Even before news broke Monday, Oct. 23, about the demise of Studs to Rugs, three radio stations went to court alleging they hadn't been paid by the Fargo contractor for thousands of dollars of advertisements.Three separate small claims were...

Tim Rosene, owner of Studs to Rugs, sits at the bar of a Fargo home's basement Jan. 27, 2014. Forum file photo
Tim Rosene, owner of Studs to Rugs, sits at the bar of a Fargo home's basement Jan. 27, 2014. Forum file photo
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FARGO- Even before news broke Monday, Oct. 23 , about the demise of Studs to Rugs, three radio stations went to court alleging they hadn't been paid by the Fargo contractor for thousands of dollars of advertisements.

Three separate small claims were filed Friday, Oct. 20, in Cass County by stations owned by Radio FM Media seeking past-due reimbursement for ads.

According to court filings, country station Bob 95 FM is seeking $10,480.50 and pop station Big 98.7 is asking for $12,189 for past-due advertising, in addition to court costs. It was unclear how much rock station 107.9 The Fox requested.

Studs to Rugs was well-known in the community for its stated ability in radio ads to "bring the feel of your upstairs downstairs." It also specialized in kitchen and bathroom renovations.

But the business closed abruptly , seemingly without warning to current customers. Its south Fargo office and showroom, 5289 51st Ave. S., was locked by Monday, with a note inside the door advising that legal counsel would answer questions "in the coming days."

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Several attempts to reach the company or President Tim Rosene for comment were unsuccessful earlier this week.

Parrell Grossman, director of the North Dakota Attorney General's Consumer Protection Division, told The Forum on Tuesday, Oct. 24, that he directed staff to launch an investigation into possible fraud leading up to its closure. At that point, the office had fielded two formal complaints from customers, including one that alleged the business took $25,000 on Oct. 4 for a renovation that never started.

Grossman said that investigation could take six months or longer to answer if Studs to Rugs did engage in fraudulent conduct, an activity that could be treated as a criminal matter if warranted. However, he cautioned it was unlikely that customers would get their money back.

A breach of contract lawsuit was filed Wednesday, Oct. 25, in Cass County District Court against Studs to Rugs and Rosene.

Hebron Brick Supply Co.'s complaint alleges the contractor applied for credit in April 2010 to get building materials before payment. As part of that application, Rosene signed an agreement to be personally responsible for debts and attorney's fees related to collection as principal shareholder of the business.

Hebron's complaint alleges it gave Studs to Rugs materials from October 2016 through July 2017 that were used for home improvement projects and a showroom at the contractor's office. Despite repeated requests for payment, Hebron said it is still owed $27,745.87 for these materials, an amount that includes finance charges.

The complaint says Hebron believes Studs to Rugs and Rosene were paid by customers for these materials and also benefited from its showroom. The company is asking to be granted immediate possession of its fireplaces and materials at the Studs to Rugs showroom, something it says in the complaint is necessary based on the "information or belief" that these products are "in immediate danger" of being destroyed or removed from the state.

The lawsuit also seeks a financial judgment of $27,745.87, in addition to daily interest and attorney's fees, costs and expenses.

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Tim Rosene, owner of Studs to Rugs, sits at the bar of a Fargo home's basement Jan. 27, 2014. Forum file photo
Big 98.7 FM is one of three Fargo radio stations seeking money from contractor Studs to Rugs for past-due advertisements. Michael Vosburg / Forum Photo Editor

Related Topics: RADIO
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