7 Brew founder sues construction biz partner

The co-owner of a Springfield-based construction company that builds modular structures used for 7 Brew Coffee locations has been sued by his business partner for alleged financial misconduct to the tune of $2 million.

In the lawsuit filed Feb. 6 in Greene County Circuit Court, Club 37 LLC alleges Lee Loveall and wife Leanna Loveall diverted company funds in the operation of Creative Modular Construction LLC. According to the lawsuit, Creative Modular Construction is owned 50% by Club 37 and 50% by Lee Loveall. Club 37 is owned by Ron and Lisa Crume; Ron Crume founded the 7 Brew coffee brand in 2017.

The lawsuit states Lee Loveall was removed as a member of CMC in January, but he refused to recognize the removal and continued to operate as manager.

The Lovealls are accused in the lawsuit of allegedly diverting more than $2 million in company money for personal use, including family vacations, vehicles and unauthorized loans. The suit additionally claims records and accounting data were withheld or manipulated, which prevented a full audit.

J. Taylor White, a partner at Kutak Rock LLP, provided a statement on behalf of the Lovealls, who he is representing.

"The Lovealls vehemently deny the allegations contained in Club 37’s lawsuit and look forward to addressing the allegations at the next hearing if the case is not dismissed prior to that time," the statement reads.

Springfield Business Journal is seeking comment from the plaintiff’s legal representation.

Court records show a temporary restraining order was issued Feb. 9 following a hearing at which both sides appeared with counsel. The judge partially granted the request, ordering the Lovealls not to alter or destroy company records and requiring them to provide access to CMC's financial and IT data, including payroll records, bank transaction files and QuickBooks backups. The order is set to remain in effect until a preliminary injunction hearing scheduled March 3.

CMC growth

In April 2024, Lee Loveall told Springfield Business Journal that CMC had completed 50 to 60 modular 7 Brew buildings, with expectations of finishing 100 that year.

At the time, Loveall said the company had roughly 140 employees. He was identified as the company’s CEO in SBJ’s 2024 interview.

"Our limitation to growth is our ability to manage everything, and we don’t want to grow too fast, but we are growing and we are providing a great product. Sky’s the limit, really," he said at the time.

Loveall also spoke of a planned multiphase, 160,000-square-foot facility for CMC near the Springfield-Branson National Airport off of Highway E. The company broke ground on the facility in September 2024, according to past reporting.

7 Brew had 663 shops in 38 states as of January. It’s unclear how many of those involved work by CMC.

“CMC is a commercial modular construction company and the dominant approved modular building manufacturer for the 7 Brew Coffee chain,” the lawsuit filed this month reads.