To borrow an expression, it’s a tale as old as time. A homeowner makes a deposit for roof repairs, and before she knows what happened, the company shutters its doors — the story never gets easier to share.
Reports out of St. Cloud, Minn., tell a grim tale of such a company affecting nearly a dozen homeowners who have collectively filed lawsuits against Oberg Roofing, located in the middle of Minnesota, about 65 miles northeast of Minneapolis.
Twelve lawsuits were filed against the St. Cloud-based roofing company and its owner, Caleb Oberg, between Oct. 21 and Nov. 15; the lawsuits request a combined total of at least $714,750 in damages. According to court records, Oberg filed for personal bankruptcy in May, which was granted this September.
Of these 12 lawsuits, 10 are filed by property owners, one by a materials supplier, and another by a contractor who installed windows at the business’ downtown St. Cloud office last March.
Oberg Roofing’s financial woes are compounded by its alleged failure to repay ABC Supply Co., which is also suing the St. Cloud business for nearly $580,000 in damages.
According to the lawsuit, Oberg Roofing entered a credit agreement with ABC Supply Co. on April 3, 2019, and resumed providing materials to Oberg through September 2024. Oberg’s payables balance with ABC Supply Co. allegedly exceeded $653,600 by February 2024, when the lawsuit states Oberg was told he needed to pay his overdue balance within 11 months.
After the February discussion between Oberg and his supplier, the lawsuit alleges that the roofing company made satisfactory payments until July 2024; then, the payments stopped. On Sept. 4, ABC Supply requested Oberg pay the remaining $525,600 balance in full as well as a separate overdue bill of nearly $72,500.
The lawsuit noted that despite Oberg’s failure to remit its balance to ABC Supply Co., it allegedly continued cashing customers’ checks as late as August. One customer, who declined to share his name or that of the Oberg salesperson, said their Oberg sales representative stopped by this house to let him know the company “wasn’t doing well.”
The Minnesota Department of Labor and Industry emailed a statement informing impacted clients that they could possibly get help through the Contractor Recovery Fund. The email states those seeking redress need to obtain a civil judgment against Oberg Roofing and Remodeling in conciliation court.
The process must be formally submitted to the district court. Victims must also submit an “Application for Compensation from the Contractor Recovery Fund” form on the state's Department of Labor and Industry’s website.
Allen Filipiak, an investigator for the Minnesota Department of Labor and Industry, wrote in the email that victims of these alleged complaints may want to contact local law enforcement.
“You may want to consider filing a theft by swindle complaint against Oberg Roofing and Remodeling Inc. and their owners, Caleb Oberg and Chad Whitcher, with your local law enforcement agency,” Filipiak’s email reads. “If you do, please notify our department of the investigating officer along with their contact information and case number."
Neither Oberg nor Whitcher responded to an inquiry by Roofing Contractor. The roofing company owners had their contractor license revoked on Nov. 7. According to public records, neither man can reapply for a contractor license for 10 years. They are also barred from holding managerial roles at another licensed residential building contractor.
Oberg and Whitcher were also issued $37,500 in penalties. However, the fees are stayed, meaning the duo doesn’t have to pay the penalties as long as they follow the terms of conditions outlined by the State. These conditions include cooperating with customers seeking assistance from the Contractor Recovery Fund.
