Billionaire John Caudwell in legal wrangle over wallpaper bill

Apr 28 2008 By Neil Connor, Chief Reporter

The Midlands' richest man, billionaire John Caudwell, has been dragged into a legal dispute over a £5,000 bill for wallpapering at his new £10 million US mansion.

Two-man decorating company Kari Kronborg Painting & Wallpaper claims it is owed £5,500 after it worked for six weeks putting up wallpaper in 13 rooms of Mr Caudwell's home in Vail, Colorado.

The work was highly praised by interior designer, Mr Caudwell's daughter Rebekah.

However, the company said due to unforeseen extra work, it was forced to increase the bill from its $25,000 (£12,500) estimation to $36,000 (£18,000). It has not been paid the $11,000 difference.

The decorating company, which charges £20-an-hour, has employed an attorney to settle the dispute, which it claims is with the Staffordshire entrepreneur worth £1.65 billion.

However, Rebekah Caudwell said the family attempted to help Kari Kronborg by asking the developers contracted with building the house to pay the wallpaper firm.

Ms Caudwell said the family paid contractors to build the property and had only visited the house to inspect work as it was being carried out.

She said: "I think Kari Kronborg has got confused. My father was never required to pay them because it was part of the terms of agreement with the contractors. He paid for the building of that house and everything to be completed within it. After he had paid he would not have had time for any more input. He would have hired a site manager to be responsible for paying."

Ms Caudwell added: "I get on very well with the company, and when I heard they had not been paid the full amount I intervened. The only solicitors involved are trying to get payment for Kari Kronborg. I hope the company gets its money, but it is not our contract."

Gary Moss who jointly-runs the decorating company, said they had to work an two extra weeks as the preparatory work by the wall finishers was sub-standard.

The new price of $36,000 was agreed by the building contractor on site, he said.

Mr Moss added: "We were told at the end of the job by the development company they would get John Caudwell to sign another cheque but the money has not been forthcoming.

"We are only trying to make a living, but we do not like donating or doing charity work for a billionaire. We are only trying to get what is owed to us, yet Mr Caudwell - who has ultimate responsibility as homeowner - believes £5,000 is too much to pay for us poor labourers, but he can hire Whitney Houston for an hour at £1.7 million at a charity function."

Mr Caudwell, at the top of The Birmingham Post Rich List for years, is concentrating on his charity work and family life following the sale of his mobile phone empire Phones4U to private equity firms Providence and Doughty Hanson & Co in August 2006.

The 55-year-old from Shelton still lives close to his roots in Staffordshire, but now occupies a 50-room £7.5 million Jacobean mansion. He also has homes in Chelsea and Les Arcs in France.

The three decorators spent three weeks before Christmas, and three weeks in January completing the work.

The billionaire and his family spent the festive period at the mansion, when Mr Caudwell inspected the work.

"We do a lot of high end, exclusive homes. We are very high quality in what we do," said Mr Moss. "Usually people pay us straight away. We have never had any problems with our customers, but Mr Caudwell is one of the wealthiest people we have ever worked for and we are having all these problems. We said on the contract that there would be extras, that is why an estimate is an estimate."