JRM, Inc., a manufacturer of irrigation equipment, has taken legal action against The HJH Companies, Inc. and Todd G. Sizer over allegations of unauthorized contract signing that could potentially cost the company hundreds of thousands of dollars. The complaint was filed by JRM, Inc. in Davidson County Superior Court on October 22, 2021, naming The HJH Companies as the defendant.
The case revolves around accusations that Todd G. Sizer, who was hired as JRM’s Chief Financial Officer in October 2020, entered into unauthorized agreements with HJH for purported cost-saving services without the company’s consent. According to court documents, these actions were taken despite clear directives from JRM’s management that only James R. Merritt and his wife had the authority to execute contracts on behalf of the company. It is alleged that Sizer continued to engage with HJH even after resigning from his position in July 2021.
The plaintiff claims that HJH’s business practices involved overstating client debts to access credit lines fraudulently and cites a previous guilty plea by an HJH consultant for fabricating financial figures under company orders. This history bolsters JRM’s allegations of fraud and unfair trade practices against HJH and Sizer.
In response to these allegations, JRM seeks declaratory relief regarding the validity of the contracts signed by Sizer, as well as damages for fraud, unfair trade practices, illegal conspiracy, rescission of the contract, and punitive damages. Additionally, they have accused Sizer of breaching fiduciary duty and committing constructive fraud.
As part of the ongoing litigation process, a hearing was held on January 10, 2022, where motions by HJH to dismiss or compel arbitration were denied by the trial court. Following this decision and further legal maneuvering involving amended complaints and third-party claims against Sizer—which were eventually dismissed—Sizer was awarded attorney’s fees by the trial court under North Carolina General Statutes.
Representing JRM in this complex legal battle is Robinson Bradshaw & Hinson P.A., while Carruthers & Roth P.A. represents Todd G. Sizer. The case is presided over by Judge Susan E. Bray in Davidson County Superior Court under Case ID No. 21CVS002155-280.
Source: COA25421_JRM_Inc_v_The_HJH_Companies_Inc_Complaint_North_Carolina_Court_of_Appeals.pdf
