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Thursday, September 19, 2019

Ala. AG seeks injunction against Cornerstone Renovations

By Bryan Cohen | Oct 9, 2012


MONTGOMERY, Ala. (Legal Newsline) - Alabama Attorney General Luther Strange announced on Thursday that a hearing has been set regarding his request for a preliminary injunction against a Pelham roofing company and its managers.

Cornerstone Renovations LLC, David C. Sorjonen, the company's chief financial officer, and Shawn A. Lay, the company's chief sales manager, allegedly took significant deposits from customers for work that was never finished. The Jefferson County Circuit Court approved a temporary restraining order against the defendants on Sept. 26.

Judge Joseph L. Boohaker will hear the motion for a preliminary injunction to keep the restraining order in effect to protect consumers at 1:30 p.m. on Wednesday.

Strange alleges that the defendants took deposits of several thousand dollars from more than 70 of its customers and failed to repair, deliver and replace their roofs over the course of several months. Strange filed a civil complaint against Cornerstone Renovations and its managers on Sept. 24.

Sorjonen and Lay were previously managers of Georgia Roofing and Construction, a company that declared a $2.8 million bankruptcy in 2010. The sudden and unexpected bankruptcy left more than 500 people, including 169 Alabama residents, with lost cash deposits and repairs that were never performed, Strange says.

"It is important that the court grants our request to extend its protection of consumers from further damage," Strange said. "A pattern of fraudulent behavior is clear from the history of Cornerstone's managers. This was continued by the intolerable act of preying upon Alabamians who suffered from storms. We are resolute in taking action to stop further abuse and to make right the harm that has been done."

Strange alleges that the defendants sent sales representatives door-to-door to solicit customers after storms hit neighborhoods in Alabama. The Cornerstone representatives allegedly convinced homeowners to sign binding contracts and sign over insurance checks.

When months passed without any work, the defendants allegedly blamed overworked employees, contractor disputes, shipment delays, the weather and higher-need customers for the delay. The defendants allegedly abandoned their office and took the deposit money of more than 70 Alabamians. Customers who did receive roof repairs allegedly found the results to be substandard. Some of the repairs allegedly created damage beyond the previous damage.

Strange is seeking a permanent injunction prohibiting the defendants from operating in the construction industry, an order that requires refunds for all customers affected and the payment of maximum penalties and fines.

The defendants are prohibited from selling, servicing or supplying any consumer transaction in Alabama until the hearing on Wednesday.

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