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AUBURN — Kruse International of Auburn has filed lawsuits totaling $2.1 million against seven defendants, claiming they owe that money to the auction company.
The defendants include five people who allegedly bought vehicles at Kruse International auctions and did not pay in full. The other two defendants allegedly borrowed money from Kruse International and did not repay it.
In a news release Monday, Kruse International president Dean Kruse said the lawsuits represent the “first round” of his company’s “effort to collect the $6.7 million accounts receivable that customers owe Kruse International for non-payment.”
Embattled by lawsuits against his company by lenders and customers throughout 2009, Kruse consistently has blamed his troubles on customers who owe him millions of dollars.
In the largest of the lawsuits filed this month, Kruse International sued Rodney Hogan and Playtime Playground Equipment of Falkville, Ala., for $670,323. The suit contends that Hogan bought 15 vehicles at a total price of $990,100 at an auction in the spring of 2008 in Auburn. They included a 1970 Plymouth Roadrunner for $125,000. Some of the cars were resold at a Kruse auction in the fall of 2008 in Auburn, reducing the amount Hogan allegedly owes.
Kruse sued Jimmy Ray Zielke of Paulding, Ohio, for $623,015. Zielke allegedly bought 55 cars with a total value of $1.46 million in a spring 2007 auction at Auburn. The most expensive was a 1968 Shelby for $123,120. Kruse International contends that Zielke has not paid in full.
Kruse sued David Jones of Corpus Christi, Texas, for $404,555. He allegedly owes the money after buying some 160 items at a Kruse auction of vintage trucks and farm equipment in the spring of 2008.
Kruse filed a lawsuit seeking $187,781 from Chip Gerst and So Cal Collectibles of Costa Mesa, Calif. The suit contends that Gerst bought 14 cars at a Kruse auction in the spring of 2008 in Auburn and has paid for only four of them.
Kruse is suing Mark Kuykendall of Sevierville, Tenn., for $97,500. Kuykendall allegedly still owes money for cars he bought in Auburn in September 2008. The suit says he bought a 1959 Cadillac Eldorado associated with Marilyn Monroe for $150,000 and still owes $65,500 on that car.
Kruse also sued Kuykendall for alleged defamation. The lawsuit claims Kuykendall told law enforcement authorities and news media representatives that Kruse committed illegal and criminal acts.
The defamation claim appears to be related to news reports out of Sevierville, Tenn., earlier this year. The reports claimed that the Secret Service was investigating Kruse, who denied that the investigation was occurring.
All of the lawsuits involving vehicles also are seeking court orders to force the defendants to return cars they purchased.
In one of two lawsuits involving loans, Kruse sued Ward Leber and the Child Safety Network of San Diego, Calif., for $60,000. The lawsuit contends they borrowed the money to finance a 1955 Chevy pickup truck covered with autographs of country music stars.
Kruse sued Roger Brummert of Indianapolis for $60,000. The lawsuit said Brummert borrowed the money from Kruse in 2003, allegedly for a car show known as the Indianapolis d’Elegance Concours.
The largest of Kruse’s lawsuits is the second local suit filed against Hogan. In January, the Auburn-based National Automotive and Truck Museum of the United States sued Hogan for $88,330. NATMUS claimed that Hogan failed to pay for vehicles and memorabilia he bought at its benefit auction in the spring of 2008.
On Nov. 16, DeKalb Superior Court I Judge Kevin Wallace awarded a judgment of $22,500 in damages to NATMUS. Court records show that Hogan has paid $10,000 toward the judgment. Some of the cars he purchased were resold at a Kruse auction in May to reduce his obligation.
Kruse filed his seven lawsuits in DeKalb Superior Court I and DeKalb Superior Court II in Auburn. Attorney John Price of Indianapolis, is representing Kruse in all the cases.
Two customers have filed lawsuits against Kruse in DeKalb Superior Court I this month.
Randall L. Tobias of Indianapolis contends that he has not been paid for two vehicles he sold at a Kruse auction Nov. 7 in Auburn. Tobias said Kruse owes him $42,000 for a 1941 Cadillac convertible and $10,500 for a 1951 Chevy pickup truck.
CECE LLC, which appears to be an Illinois company, contends that Kruse owes it $19,500 for a 1956 Chevrolet it sold at a Kruse auction in Auburn in September 2009.
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