Businessman sues
over Honsador deal

The recently completed sale of one of the state's largest lumber suppliers to a Cleveland-based private investment firm is being challenged in court by a Houston businessman who contends he was secretly cut out of the deal.

Richard R. Foreman filed suit Friday in Circuit Court in Honolulu.

The sale of Honsador Lumber Corp. to Key Principal Partners LLC, an affiliate of the $84 billion financial services firm KeyCorp., was completed Nov. 5.

The deal, worth an estimated $50 million, included Honsador's two subsidiaries: Honolulu Wood Treating, the state's largest wood treatment company; and Ariel Truss, the state's largest manufacturer of roof trusses.

Foreman alleges that a group of investors led by him had reached an agreement to purchase Honsador for $28 million.

His lawsuit contends Key Principal Partners agreed to join his venture but then secretly negotiated a deal with Honsador owner James J. Pappas for the higher amount.

Foreman is seeking compensatory and punitive damages to be determined at trial.