Hacketts gets mixed bag in court action

Owners of Patrick Hackett Hardware Co. got good and bad news in court Wednesday.

The good news was that the Ogdensburg-based company's dispute with True Value Co. is cooling down a bit. Through an agreement reached in court, Hacketts can continue selling merchandise in its stores, but not display or use the hardware company's logo in advertisements.

Both Seaway Valley Capital Corp., Hacketts' owner, and True Value agreed to the stipulation Wednesday in U.S. District Court in Albany before Judge Thomas J. McAvoy. The agreement lasts until Aug. 5, but True Value can extend the stipulation should it choose.

In a separate action filed in St. Lawrence County Court, however, a plaza owner wants to evict the Hacketts store from its Gouverneur location because of back rent owned.

Gouverneur Center Development LLC of Utica filed a lawsuit Wednesday against Patrick Hackett Hardware, alleging that Hacketts owes $129,286.72 in back rent.

The suit claims WiseBuys signed a contract in August 2003 to lease the former Ames space on East Main Street. WiseBuys acquired Hacketts in November 2007.

A hearing on the suit is scheduled for Aug. 4 in St. Lawrence County Court, Canton.

The dispute between Hacketts and True Value Co. came to a head when True Value claimed in a federal lawsuit filed last week that the Hacketts owes it nearly $1.8 million. The Chicago-based company filed its action July 9 in U.S. District Court in Syracuse against Patrick Hackett Hardware, its parent, Seaway Valley, and Thomas W. Scozzafava, chief executive officer of Seaway Valley.

The suit asked for payment and for all references to the True Value brand to be removed from Hacketts stores. It also sought removal of Mr. Scozzafava as CEO of Seaway Valley.

True Value claims Hacketts is in default of several "member" agreements, which allow stores to use the trademarked True Value name as part of a cooperative and enables members to benefit from group buying power, group billing procedures and other benefits.

The company claims that despite repeated demands, Hacketts has failed to pay $1.77 million due under its membership agreement.

Hacketts officials said last week that they are looking at ways to repay the debt. Mr. Scozzafava didn't return a call Wednesday for comment.

Hacketts has been working for months to repay a $5 million line of credit owed to Wells Fargo bank. The company expects the debt will be paid off fully shortly.

Hacketts already has closed in Watertown and will close soon in Gouverneur. Hacketts stores in Massena and Pulaski also closed earlier this year, and the Canton store is scheduled to close later this month. Stores remain open in Sackets Harbor, Tupper Lake, Ogdensburg and Potsdam.