The co-owner of Springfield restaurant First Watch is suing his business partner.
Joseph Halston, a 50% co-owner of Ozark Endeavors LLC, is suing another co-owner, James Tillman, for fraud, misappropriation of funds, and breach of fiduciary duty. James Tillman's wife, Lisa Tillman, is also a defendant. Ozark Endeavors, LLC manages various LLCs that operate First Watch locations in Springfield, Joplin, Lake of the Ozarks, and Northwest Arkansas.
The lawsuit, filed April 19 in Greene County Circuit Court, alleges that Tillman, without Halston's knowledge, increased his own salary, directed his wife and daughter to pay their salaries, and used his company credit card. He claims that he took advantage of this and moved the LLC's headquarters to a rented space he owned. .
Halston and Tillman are also co-owners of Kansas & Kearney LLC, which owns basic development sites and sells development land to commercial buyers. In this venture, Halston and Tillman will each own 70% and his 30% stakes. Mr. Halston also alleges that Mr. Tillman signed a letter of intent to sell the Kansas & Kearny property without his knowledge and refused to comply with debt and expense obligations.
Tillman also operates the Huey Magoos and Casa Bella stores in Springfield, as well as a number of LLC listings registered with the Missouri Secretary of State. The complaint alleges that Mr. Tillman has a conflict of interest due to his financial interest in these businesses. In addition to his fraud and misuse of funds, the lawsuit alleges that Mr. Tillman steered money, contracts, jobs and business opportunities to entities he owned to the detriment of Ozark Endeavors. Tillman also allegedly directed his employees not to provide Halston with business information and made disparaging statements about Halston.
Hulston, Ozark Endeavors LLC, and the LLCs it controls are seeking punitive and actual damages in amounts deemed “fair and reasonable” by the court. The complaint also states that Mr. Tillman should be removed as manager of Plaintiff LLC and permanently prohibited from making business decisions on behalf of Plaintiff LLC. Mr. Halston also wants Mr. Tillman to pay his legal costs.
Lawsuit: Mr. Tillman increased his salary and paid his wife and daughter.
According to the complaint, Halston and Tillman did not receive consistent pay or compensation during their first three years at the company. In 2020, the two agreed to set their respective salaries at $60,000 and to split the remaining compensation equally. From 2021 to 2022, Mr. Tillman allegedly increased his salary three times without Mr. Halston's knowledge, first by $100,000, then by $150,000 and finally by $210,000.
Tillman continues to receive this $210,000 salary despite Halston's request to return it to the agreed-upon $60,000, according to the complaint. Halston still receives a $60,000 salary despite being on the same level as Tillman.
The lawsuit also names James Tillman's wife, Lisa Tillman, who assisted Ozark Endeavors' full-time accountant in matters related to the First Watch restaurant and the Kansas & Kearny property. It is claimed that The full-time accountant's salary was initially set at $50,000, but has since been increased to $63,000. The complaint alleges that Mr. Tillman directed his wife to be paid a $65,000 salary for assisting a full-time accountant without Mr. Halston's knowledge, permission or consent.
According to the complaint, Lisa Tillman's salary was increased twice, first to $70,000 and then to $75,000, $12,000 more than a full-time accountant. The complaint notes that Mr. Halston specifically objected to Lisa Tillman being paid more than her accountant or receiving raises without his permission. Mr. Fulston asked Mr. Tillman to withhold his wife's paycheck, but Mr. Tillman refused.
The lawsuit also names Tillman's daughter, Jamie Tillman, who previously worked at First Watch on National Avenue. Tillman allegedly directed the LLC that controlled the restaurant to pay her daughter's salary and directed Ozark Ventures to provide medical benefits to the employees. According to the complaint, Jamie Tillman continued to receive wages and medical benefits after leaving First Watch. Ozark Endeavors continues to pay for Jamie's Tillman medical insurance premiums. Mr. Tillman allegedly refused Mr. Halston's request to stop his payments and refund his money.
Tillman, his wife Lisa Tillman, and their daughter Jamie Tillman did not respond to multiple requests for comment for this article.
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Allegations of fraud, misrepresentation, and misuse of company credit cards
According to the complaint, Ozark Endeavors entered into a lease in 2019 for a rental space headquartered at 610 E. Battlefield Road, with monthly rent payments of $1,710. In September 2022, Mr. Tillman allegedly moved his headquarters to rented space at 1840 S. Ingram Mill Rd. without notifying Mr. Halston. It is owned by his J&M Tillman LLC, a business controlled by Tillman. After the move, his monthly rental costs increased to $9,750.
The complaint says the original leased space was more than adequate and there was no business reason for Ozark Ventures to move to Ingram Mill Road. Mr. Tillman allegedly refused to provide lease documents related to both spaces and to explain why the rent increased by more than $7,000 per month.
According to the complaint, six people at Ozark Endeavors, including Mr. Halston, Mr. Tillman and Lisa Tillman, were given company credit cards to help pay business expenses. Mr. Halston alleges that Mr. Tillman and Lisa Tillman used the credit cards for personal use and to support their business. Prices include Amazon Prime movie purchases, clothing, domestic and international travel, TV subscriptions, construction costs, fuel costs, auto repairs, groceries, and home renovation costs. According to the complaint, Mr. Tillman denied Mr. Halston's requests for credit card statements and business justifications for the suspicious charges that occurred.
Unlike First Watch Restaurant and Ozark Endeavors, Halston is a 70% owner of Kansas & Kearny, and Tillman is a 30% owner. Tillman allegedly told the real estate agent that he represented himself as the sole owner of the business and to stop any further contact with Halston. Tillman then signed an $825,000 letter of intent to sell the Kansas & Kearney property, the lawsuit says.
The plaintiff is Halston. Ozark Endeavors, LLC; National Avenue FW, LLC; East Sunshine FW, LLC; Lake of the Ozarks FW, LLC; Joplin FW, LLC; Rogers FW, LLC, Bentonville FW, LLC; North Fayetteville FW, LLC; Kansas & Kearney, LLC is represented by attorney Brian Wade.
