Breached contracts, embezzlement and fraud are among the accusations levied between the owners of Anchorage's now-defunct Crossbar Sports Restaurant, who are in the midst of a legal battle scheduled for trial this month.
Open for less than two years in Midtown Anchorage, Crossbar closed abruptly in May 2015. Court documents allege turmoil between owner Brock Lindow -- also the singer of Anchorage metal band 36 Crazyfists -- co-owner Kenneth Ryther and a company majority-owned by Lindow's ex-wife, trouble that started before the restaurant had even opened for business.
The legal battle began in November 2014, six months before the restaurant closed, in a civil suit filed against Ryther in Anchorage Superior Court.
In the suit, Chemtrack Alaska Inc. alleges that Ryther owes it roughly $400,000 for renovations to the restaurant completed in autumn 2013.
Chemtrack is a general contract company majority-owned by Carrie Lindow, who was married to Brock Lindow until November, when the couple began divorce proceedings, online court records show.
In early December, Ryther countered the claim, alleging embezzlement by Brock Lindow, fraudulent billing by Chemtrack and breach of a settlement agreement. He is asking the court to dismiss the case against him, and to award damages for alleged misconduct of both Brock and Carrie Lindow.
None of the parties, nor their attorneys, returned multiple requests for comment Thursday.
'A serious cash flow problem'
Ryther and Brock Lindow formed Wicked Wrister Enterprises LLC, the limited liability company under which Crossbar was run, in 2011, according to state business records. The two had equal ownership in the LLC.
"Their plan was to raise capital to start a family-friendly, hockey-themed sports bar and restaurant," Ryther said through his attorney Wayne Dawson, in a counterclaim and complaint filed in the case.
The two men had been friends for several years before starting the restaurant, but had never entered into a business partnership before, Ryther claims.
Ryther and the Lindows worked together to secure investors, and in November 2011 they opened a bank account. Carrie Lindow played a large role in company decisions, Ryther said, and the company's bank statements were sent to the Lindows' home, with Ryther receiving only verbal updates from Brock Lindow, he alleges.
"Due to his friendship with [Brock] Lindow, Ryther did not believe Lindow would betray him, steal from [Wicked Wrister], or embezzle investor funds. However, Lindow took advantage of that friendship," the complaint alleges.
Renovations on the building were completed in August and September 2013 by Chemtrack. The restaurant opened for business Nov. 12, 2013.
In late 2013, Brock Lindow left Alaska to record an album, leaving Ryther to manage the finances, the complaint says.
Before Lindow left, he told Ryther the company owed its vendors around $100,000, and "claimed he had no bookkeeping in place," Ryther said.
Afterwards, Ryther discovered that "Crossbar had a serious cash flow problem" when investigating the company's bank statements.
Between 2011 and 2013, Brock Lindow spent $164,616 from the company's bank account for his own personal use, Ryther alleges. Every alleged transaction is listed in court documents, among them vacation expenses, cash withdrawals and payments to Anchorage restaurants, music supply stores, and a strip club in Portland, Oregon.
Ryther also alleges that the Lindows were seeking additional investors without Ryther's knowledge, and they were trying to get a loan to repay Chemtrack some construction costs.
In April 2014, Ryther told investors about the company's financial issues, and barred Brock Lindow from entering the restaurant, court documents say.
On May 11, 2015, Crossbar shut down. Ryther claims the closure was due to Lindow's "theft and embezzlement."
'Simple breach of contract'
Chemtrack, through attorney William Ingaldson, argues in its initial complaint that case is one of "a simple breach of contract" and claims Ryther is solely responsible for the amount the company says it is owed for work on the restaurant, plus damages and attorney's fees.
Renovation work performed in August and September 2013 amounted to $406,959 in unpaid bills, Chemtrack alleges, which was a "substantial reduction" in the company's normal rate.
In April 2014, ownership of Wicked Wrister was transferred solely to Ryther, online court records show. Chemtrack's complaint alleges the change of ownership was "without consideration and improper."
"Since usurping complete control … Ryther has not provided Brock Lindow or the other investors any financial information relating to Wicked Wrister's operation," the company alleges.
Given this change of ownership, Wicked Wrister "has been a mere instrumentality or alter ego" of Ryther, and he should be "personally liable" for the unpaid bills, the company argues.
Ryther argues the bill is fraudulent and overinflated, including projects that were not accounted for. A construction contract was made verbally, Ryther writes, with the understanding that it would total roughly $300,000.
Ryther also alleges he had reached a settlement agreement with Chemtrack in May 2015, but that the agreement wasn't honored by the company. Ryther's counterclaim was filed on Dec. 23, 2015.
In its trial brief dated Jan. 4, 2016, Chemtrack writes that it is "prepared to go forward with trial and is willing to waive a jury."
The trial date is scheduled for Jan. 18.