Last week, the 8th U.S. Circuit Court of Appeals ended Hanna’s Candle Co.’s nearly seven-year legal battle with Bank of America.
The appellate judges upheld the bank’s judgment of $6.2 million against Hanna’s Candle of Fayetteville, owner Burt Hanna and two of his LLCs. The bank alleged breach of contract and breach of guaranty tied to an $11.2 million loan default by the Hanna’s entities, which included JB Hanna LLC and Kerzen Properties LLC.
“We’re disappointed, obviously, with the decision,” said Jeff Mitchell, Hanna’s attorney, who’s with Taylor Law Partners LLP of Fayetteville. “Now that we have it, it’s time to get back to the business of filling orders and selling candles.”
Mitchell said most of the disputed money had been paid a long time ago.
This was Hanna’s second trip to the 8th Circuit for the case. After BOA sued, Hanna’s filed a counterclaim alleging the bank committed fraud. In May 2012, a federal court jury in Fayetteville ruled in Hanna’s favor after a seven-day trial.
BOA appealed, and the 8th Circuit judges overturned the verdict in 2014. The case was sent back to federal court, where they ruled in the bank’s favor: $3.2 million for compensatory damages, $2.5 million in attorneys’ fees, $463,000 for costs and interest of $86,900.
Mitchell said the judgment will be paid off shortly. The decision “is not going to cause Hanna’s Candle Co. to be shuttered,” he said.