Giuffre brothers engaged in bitter court fight
One accuses other of misconduct, including being drunk at work
More than 50 years after they went into business, eventually building an empire worth an estimated $100 million, the Giuffre brothers are engaged in a bitter fight that just made its way to the courthouse.
Dominic Giuffre, who at age 71 is the younger sibling, charges in a lawsuit that his big brother Frank Giuffre, 75, has overpaid himself, been drunk at work and used company funds to maintain a home for his then-girlfriend. Dominic Giuffre is asking a Milwaukee County Circuit judge to put their companies in receivership.
“Frank’s business conduct has become increasingly oppressive, and at times illegal and fraudulent,” Dominic said in a 55-page lawsuit filed last week. “He has committed or tolerated acts of misapplication and waste of corporate, member and partnership assets.”
In addition, the lawsuit charges that “Frank has been paying himself a disproportionate amount of the profits and proceeds while failing to equalize payments for Dominic.”
Those actions violate an agreement reached more than 50 years ago that gave each brother 50% interest of the then-fledgling crane company, Dominic Giuffre contends.
“They shook hands to seal the deal in front of their parents, in the Italian way,” Stephen Kravit, Dominic Giuffre’s lawyer, wrote in the lawsuit..
Frank Giuffre’s lawyer, John Finerty Jr., said his client “is heartbroken that his brother would choose to air his grievances and tell such a lopsided story in a public forum.”
Finerty said that for a half-century Frank Giuffre has been the top executive at a “wildly successful real estate and crane company.”
The suit hit as the brothers were “negotiating how to divide up Frank and Dominic’s interests” in the multitude of companies they own, Finerty said. Court records put the value of the crane company, real estate holdings, a Florida marina and other assets at approximately $100 million.
Kravit said the suit was filed only after “the framework of a settlement was abruptly pulled off the table” by Frank Giuffre. “Dominic felt he had no choice but to seek court supervision” over the companies.
The suit paints Frank Giuffre as a vindictive executive, known for “treating himself and his family to perks such as pay for little or no work, multiple high-end company vehicles, vacation homes and travel while denying similar treatment or equalizing payment to Dominic or his family.”
In addition, it alleges Frank Giuffre abused alcohol and came to work drunk.
“Frank’s escapades, including regular benders, often resulted in his showing up late to the office while still intoxicated, showing up with vomit on his clothing, sleeping in the conference room during business hours or not showing up at all,” the suit states.
Finerty’s response: “The defendants will contest every allegation — except the spelling of the Giuffre name.”
“These companies are functioning, profitable, well-managed and well-capitalized,” Finerty said. “The complaint doesn’t tell the whole story. It’s really a Giuffre family success story.”
Dominic Giuffre’s lawsuit agrees that things ran well with the brothers for decades.
Milwaukee-based “Giuffre Brothers Cranes expanded from a local Milwaukee business into a nationwide manufacturer, seller and lessor of boom trucks, cranes and parts, with locations in Chicago, Phoenix, Salt Lake City and Palm Beach,” the suit said.
Around 1967, the suit said, “Dominic and Frank began to purchase distressed industrial real estate with funds generated from the crane business’ profits.”
The suit argues that though Frank had the title of president, it was agreed “that so long as they remain equal shareholders in the corporation the compensation of Dominic and Frank Giuffre shall be the same.” The brothers are the only two members of the companies’ boards of directors.
But, the suit said, “Frank has withdrawn more than $1 million from his capital accounts with the various businesses without informing Dominic of his actions or the imbalance between their respective capital accounts.”
In addition, the suit charges that Frank Giuffre was negotiating to sell a jointly owned profitable Florida marina for $14 million without telling Dominic.
In addition, Dominic Giuffre charges that his older brother “treated Dominic and his family members unequally and unfairly, in one instance terminating Dominic’s son’s employment without notice on Dominic’s birthday.”