Hackett Siblings Can Recoup $$

CANTON - A state Supreme Court judge has ruled that two Hackett family siblings and a former chief executive officer can recoup money they're owed in connection with the $6 million sale of the Hackett Hardware Co. Inc.

Patrick E. Hackett Jr. and his sister, Julianne Hackett Cliff, both of Ogdensburg, and Norman V. Garrelts, Hacketts' former president and chief executive officer, filed suit in August claiming each is owed $748,253.68, plus interest dating back to June 22.

The lawsuit is against WiseBuys Stores Inc., Seaway Valley Capital Corp. and Thomas W. Scozzafava.

Judge David R. Demarest granted the trio summary judgment because "they have produced the signed promissory notes and shown defendants are in default under the notes' terms."

According to the suit, Mrs. Cliff, Mr. Hackett and Mr. Garrelts entered into a stock purchase agreement May 24, 2007, in which WiseBuys Stores Inc. agreed to pay $6 million to purchase all of the outstanding shares of the Patrick Hackett Hardware Co.

On Nov. 7, 2007, Seaway Valley and Mr. Scozzafava each executed a guaranty agreement that required them to make payments to the plaintiffs on 12 separate promissory notes.

On April 1, 2008, the two parties executed a debt amendment and debt assumption agreement. It was stipulated that the promissory notes and the $6 million stock purchase agreement are interrelated.

That meant if WiseBuys, Mr. Scozzafava or Seaway Capital defaulted on any of the agreements, it would constitute a default by WiseBuys in respect to all of the promissory notes, the suit alleged.

Payment on the first promissory note was not delivered by Dec. 30, 2008, as required, the action claims.

The defendants received legal notification last March that they were in default and that if payment wasn't received within 90 days, they would owe the entire unpaid principal sum plus accrued interest, the action alleges.

Defense attorney J. Eric Charlton of the Hiscock & Barclay law firm in Syracuse declined comment. Mr. Scozzafava, Mrs. Cliff and Mr. Garrelts didn't return calls for comment. Attorney Roderick C. McDonald of the Bond, Schoeneck & King law firm, representing the plaintiffs, also didn't return calls for comment.