A pool construction company has filed for bankruptcy, forcing almost a dozen court cases against him to screech to a halt.
Federal bankruptcy documents show Suffolk contractor Paradise Aquatics filed for Chapter 11 bankruptcy Feb. 28, reporting over $1.1 million in liabilities — more than $220,000 of which stems from “pending liabilities” being litigated in court.
According to bankruptcy documents filed in federal court, there are 10 matters in litigation against the company and its owner, Paul McQueen — two of which are filed in Williamsburg-James City County courts.
Other cases are filed in Chesapeake, Virginia Beach, Smithfield, Newport News, Maryland and Oregon.
For now, an automatic stay under bankruptcy law has forced all court cases to hit pause.
When a business files for Chapter 11 bankruptcy, an automatic stay falls into place that prevents creditors from pursuing all judgments, collection activities, foreclosures, and repossessions of property until the business resolves its financial issues.
Chapter 11 bankruptcy is typically used by commercial enterprises that desire to continue operating a business, according to the Administrative Office of the United States Courts. The business will usually repay creditors through a court-approved plan.
But at least one plaintiff in Williamsburg is asking a court to lift the stay, allowing their case to resume.
Williamsburg couple Michael and Karen Youshock filed a case against Paradise Aquatics in November 2017, alleging McQueen did not adequately construct a new pool at their house.
The couple’s case was scheduled for trial Feb. 28, the same day McQueen filed for bankruptcy.
“My clients plan to seek relief from the automatic stay and then reschedule this case for trial in the Williamsburg-James City County General District Court,” attorney Johnny Cope wrote in a letter to the General District Court clerk’s office.
Online court records show the case was continued until Aug. 27 at 1:30 p.m.
The bankruptcy notice was also filed in the Williamsburg-James City County Circuit Court, where another case is pending against McQueen.
The circuit court case alleges McQueen took a $50,000 deposit from a Governor’s Land homeowner for work on the home’s pool, then failed to do the job.
The civil case states McQueen breached the contract they signed in April 2017 and committed fraud by spending the deposit on items other than the project materials.
McQueen removed a few bricks from the pool, then cut off contact with the homeowner, according to police.
The lawsuit demands a $400,000 settlement: $50,000 for repayment and $350,000 in punitive damages.
James City County Police criminally charged McQueen with construction fraud in January in connection with the Governor’s Land case. The charge was dropped Feb. 22 in the Williamsburg-James City County General District Court.
According to the bankruptcy filing, Paradise Aquatics has not filed for bankruptcy at any other time in the last eight years.
Documents show the company made $1,244,203.91 in 2017 from new pool construction alone, although Paradise Aquatics also sells pool supplies and maintains and repairs existing pools.
