Lexington Blue owner asks judge to dismiss KY attorney general’s complaint
AI-generated summary reviewed by our newsroom.
- Brad Pagel filed a motion to dismiss Kentucky AG's complaint against him.
- AG alleges Lexington Blue misused large deposits for hundreds of unfinished roofs.
- Pagel denies direct wrongdoing and challenges AG’s standing in unjust enrichment.
Lexington Blue roofing company owner Brad Pagel has filed a motion through his new attorney, Adrienne Southworth, to have the Kentucky attorney general’s lawsuit against him dismissed.
The motion did not ask for the complaint against Pagel’s wife, Courtney, to be dismissed or complaints against any other former Lexington Blue employees.
.jpg "attachment (22).jpg")
Kentucky Attorney General Russell Coleman’s office filed a complaint in Fayette Circuit Court alleging Pagel, his company and multiple employees violated the Kentucky Consumer Protection Act, as well as statutes governing roofing contractors. They have also been accused of unjust enrichment.
The motion is scheduled to be heard by Fayette Circuit Judge Diane Minnifield at 2 p.m. Sept. 5.
According to the Attorney General’s complaint, Pagel and his wife, Courtney, as well as employees Alex Southwell, Brooke Durbin and Nicholas Conway, accepted large deposits to Lexington Blue from hundreds of homeowners for roof repairs that were never completed or in some cases even started.
Lexington Blue closed abruptly in April and filed for bankruptcy in June. According to filings in the bankruptcy, at least 263 roofing contracts were at least partially paid for but never completed.
Coleman’s office is seeking the recovery of potentially millions in misappropriated funds, plus damages and fines.
In an Aug. 10 filing, Pagel argues that the Attorney General has failed to pin “a specific wrongful act” on Pagel.
“Nowhere do the complaints state that Brad Pagel personally made misrepresentations to a consumer, damaged property or diverted funds with any particularity necessary to maintain this type of claim,” according to the motion.
The attorney general’s filing “does not identify a single consumer or employee to whom Mr. Pagel spoke, the date or place of any such conversation, or any statement made to such third party,” according to Pagel’s motion, which also alleges the Attorney General has no standing to allege a private unjust enrichment claim.
The motion to dismiss was filed one day before Pagel testified under oath in his federal bankruptcy case and answered questions from creditors, homeowners, the U.S. Trustee’s attorneys and an attorney from the Kentucky Attorney General’s office.
At that creditors’ meeting, Pagel repeatedly blamed his employees for steering Lexington Blue into troubled financial waters while he claimed to be hands-off despite receiving a weekly paycheck.
This story was originally published August 13, 2025 at 5:00 AM.
