Kruse sues customers to satisfy its debt

January 3, 2010

Embattled auto auction house Kruse International is suing some of its customers to try to recoup millions of dollars as it faces legal pressure over its own debts.

Auburn-based Kruse has filed lawsuits in DeKalb County seeking more than $2 million. The auction house says it is owed $6.7 million by customers.

Kruse spokeswoman Kelley Ellert says the company plans to file five to 15 additional lawsuits over the next several weeks.

Kruse faces several lawsuits, including one by a Kansas bank alleging auctioneer Dean Kruse violated terms of a loan on which he still owes $6.5 million and another claiming Kruse defaulted on a $7.8 million debt.

The auctioneer told The Journal Gazette of Fort Wayne in August that the recession has hurt his sales.
 

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