BY MICHAEL BURKE
Journal Times | Posted: Thursday, May 15, 2008 12:00 am
MOUNT PLEASANT - A bitter dispute between the two brothers who own Havahart Pets is headed to court and could even mean the end of the independent pet store.
Donald Stewart, founder of Havahart, recently filed a lawsuit in Racine County Circuit Court against his brother, Dennis Stewart, and the business. Both attorneys said the dispute has been going on for months without a buyout agreement.
In the lawsuit, filed April 29, Donald Stewart alleges that Dennis, the store manager, unfairly cut Donald out of the business and changed the locks of the store at 6500 Washington Ave. Donald is seeking damages, dissolution of the business and proceeds from its sale, and to have the business put into receivership. Receivership is essentially the state version of bankruptcy.
But Leander Valent, Dennis Stewart's attorney, scoffed at the lawsuit as nothing but a negotiating tactic. He said that Donald's allegations are merely that.
"It's just a silly dispute that should be resolved short of extensive litigation," Valent said.
The brothers have not been able to reach agreement on a buyout so, "they have decided to try to force the issue," he said.
Donald's attorney, Brad Hoeschen of Greenberg & Hoeschen in Milwaukee, flatly rejected Valent's claim that the lawsuit is a bargaining tactic.
"We have been attempting, for months, a sale of the interests one way or the other," Hoeschen said.
The lawsuit will proceed, he said, and the brothers may still settle. Failing that, he said it could mean the end of the business.
Havahart, which opened in August 1988, is the Racine area's best-known and most enduring independent pet store. As other shops have come and go, Havahart has held its own against such chain stores as Petco and
Petland.
Hoeschen said his client started Havahart and ran it, then later added Dennis as a partner.
Donald's lawsuit states that 1,000 shares of stock were issued, half to each brother. The original directors of the corporation were the brothers and Donald's wife, Carol Stewart.
The suit states that when Donald and Carol called a special board meeting for last Oct. 12, Dennis failed to show up, fired Donald without real authority to do so, and changed the locks on the store. It says that Dennis has taken control of the business and its finances.
As half-owner of Havahart, Donald contends he is entitled to half the profits, but his suit claims that Dennis has failed to pay Donald the money owed to him.
Valent, of Knuteson Powers & Quinn law firm in Racine, said that when the response to the lawsuit is filed, it will likely contain a counterclaim.
He disputed the contention about Dennis locking Donald out.
"I think it's overstated," Valent said. "(Donald) has not been denied access to the premises. It's just false."
Both lawyers said Dennis has run Havahart for the past few years. Hoeschen said Donald does not particularly want to own the business but is open to either brother buying out the other's interest.
Valent said: "I guess they didn't think the negotiations were proceeding rapidly enough, and I guess they feel they have lost control of the situation because we're running the business."