Kendall Qualls failed the only thing that matters when choosing a running mate: do no harm

Kendall Qualls announced in March that Brian Nicholson, a political neophyte, would be his running mate in the Republican race for governor, touting his experience in the business world. 

On the very same day, a court ruled that two companies Nicholson is closely associated with — Delta Modular Construction and Headwaters Development LLC — owed $77,000 to an insulation contractor that never got paid for their work. 

In fact, the two companies never even replied to the lawsuit from family-owned Reichel Insulation. 

What’s truly galling is that it was a state-subsidized project — $10 million to finish construction on affordable workforce housing in Windom in southwest Minnesota, which had been abandoned by a pork processor that went belly-up in 2023. 

Ryan Dreyer, who represents the insulation company, said lawyers for the companies only appeared after a court entered the $77,000 judgment. They sought to negotiate a settlement with the insulation company — but then refused to finalize a payment plan.

An attorney withdrew from representing Delta Modular and Headwaters, and Dreyer garnished the companies’ bank account.

The most recent posting of the case was in March: It’s a photo of an unopened letter sent from the 5th District Court in Pipestone to an address in Chanhassen for Headwaters Development LLC: “Return to sender.” 

Qualls is an Army veteran and former health care executive who would be the state’s first Black governor if elected. He came in second in the governor’s race at the 2022 GOP convention. He’s been racking up straw poll victories this year against House Speaker Lisa Demuth and pillow mogul Mike Lindell. The winner will face presumptive Democratic nominee Sen. Amy Klobuchar.  

Qualls has had one key decision to make so far: Choosing a running mate who could be governor on day one in case something happens to him. His vetting of Nicholson, however, resembles a massage spa hiring Edward Scissorhands — other litigants have also accused Nicholson and his companies of malfeasance.

A former Headwaters CFO alleges in an explosive lawsuit filed earlier this year that he was never paid the significant severance he’s owed. Brian McCaw, the former CFO, also alleges that Nicholson’s company “was over-leveraged, failing to pay vendors on a timely basis, and was not providing timely or sufficient communications to the company’s investors.”  

McCaw “advised Nicholson of the importance of paying vendors, contractors and others in a timely fashion,” the lawsuit states.  

McCaw says Nicholson directed him to funnel Headwaters money to his other companies and was using company money for personal expenses like “concert tickets, family cell phone bills, vehicles and vacations.”

McCaw sought to move on after learning Nicholson and his business partner asked another employee “to submit fraudulent American Institute of Architects documents to a prospective lender in connection with their pursuit of financing for construction projects, while not disclosing certain side agreements with a separate lending bank to the prospective lender.” 

In their response and counter-claim, Nicholson and his business partner deny the allegations and then cite the terms of the separation agreement with McCaw, which included a non-disparagement clause.

“Despite the prohibition … plaintiffs have made multiple disparaging comments and remarks about each of the defendants.”

Too bad for Nicholson, there is no non-disparagement clause in politics. 

Those are just two of the lawsuits that have swirled around Nicholson. 

When I asked the Qualls campaign about the litigation, Nicholson sent me a statement: “Like a lot of people in business who have encountered this same thing, this isn’t the first time someone has filed a lawsuit and I’m sure it won’t be the last. Just look at President Trump, he is one of the most successful businessmen in the country, and he’s said himself that this is a part of doing business.” 

(Trump’s only earned his status as “one of the most successful businessmen in the country” by selling out America to the highest bidders, from the UAE to Vietnam.)  

But back to Nicholson: “While I’d love to lay out the facts here, I unfortunately can’t yet talk about the specifics – but needless to say, nothing will take my attention away from continuing to provide good jobs and provide good wages for my employees. Economic growth comes from the private sector willing to push themselves, not the government — and that is the new mindset Minnesota will adopt when Kendall Qualls is governor.”

I’m sure Reichel Insulation provides good jobs, but they won’t for much longer if companies stiff them on their government-funded jobs, like the records suggest Headwaters did here.