In a dramatic legal filing, an Ohio-based construction company is accusing several homeowners, their attorney, and a federally regulated lender of orchestrating a financial coup to seize control of residential construction projects. The complaint was filed by Barnhart Builders LLC and its principal, Peter Barnhart, in the United States District Court for the Northern District of Ohio on January 16, 2026. The defendants include Rural 1st and Farm Credit Mid-America among others.
According to the complaint, Barnhart Builders was contracted to build custom homes for Jessica and Brian Schmidt as well as Jason and Nina Filipucci. These projects were backed by construction loans administered by Rural 1st. The plaintiffs allege that despite having a written disbursement authorization ensuring payment directly to them for completed work, the defendants manipulated the loan disbursement process to redirect funds away from Barnhart Builders. This allegedly left the plaintiffs unable to pay subcontractors or continue work, effectively forcing them out of their roles while allowing the defendants to complete the projects using Barnhart’s resources without compensation.
The lawsuit claims that this scheme was not isolated but part of a pattern involving similar tactics on another project with the Filipuccis. Defendants are accused of making false statements about Barnhart Builders’ performance to justify seizing control of project finances and operations. Plaintiffs assert that these actions resulted in significant financial losses and damage to their reputation within the construction industry.
Barnhart Builders is seeking compensatory damages for lost profits and unpaid labor costs, punitive damages for malicious conduct, and equitable relief including declaratory judgments affirming their contractual rights. They argue that defendants engaged in tortious interference with business relations, conversion of funds, civil conspiracy, defamation, abuse of process, and violations under the Racketeer Influenced and Corrupt Organizations Act (RICO).
Representing Barnhart Builders are attorneys from Dewey, Selvey & Liska. The case is presided over by Judge Knepp with Magistrate Judge Clay assisting. The case identification number is 3:26-cv-00118-JRK.
Source: 326cv00118_Barnhart_v_Rural_1st_Complaint_Northern_District_Ohio.pdf
