On behalf of Brown & Crouppen, P.C. posted in Workers’ Compensation on Tuesday, March 1, 2011
The former owner of a St. Peters, Missouri, foundry who has been accused of draining money from the business for his personal expenses is facing a charge that he let the company’s workers’ compensation insurance lapse. A hearing is scheduled for March 15 in St. Charles County Circuit Court to determine whether the former owner, a 59-year-old man, knew the foundry had no workers’ comp insurance from early December 2008 to mid-February 2009. Two employees were injured on the job during that time.
After an investigation, the Missouri Department of Labor accused the owner of not carrying workers’ compensation insurance from December 4, 2008 through February 13, 2009. The former owner told investigators that he did know that his finance company had canceled the policy.
However, an agent with the insurance company that carried the policy said that he had personally told the former owner that it was necessary to have workers’ comp coverage in Missouri. Despite the warning, the former owner knowingly let the policy lapse, the insurance agent said.
The accused man was president and secretary of Didion & Sons Foundry, which opened in 1952 and went out of business in September 2009. In a lawsuit, 62 of the foundry’s former employees sued the company for pay they said was owed them. The employees alleged that the owner used company money to buy his wife’s business, as well as expensive personal items like $20,000 watches. The employees won a summary judgment of $1.45 million against the company. Their attorney said that he is trying to get the judgment attached to the former owner personally, given that he used the foundry as a personal asset.
Source: St. Louis Post-Dispatch, “Court hearing set for former owner of St. Peters foundry,” Steve Pokin, February 28, 2011