Campbell Arms, LLC Must Repay for State ECD

HUNTINGDON (September 2) — Campbell Arms, LLC of Huntingdon must repay the Tennessee Economic and Community Development the funds the ECD provided in a Fast Track incentive grant for Campbell Arms to create 50 new jobs in Carroll County.
Vicky Hoover, chancellor for the 24th Judicial District, ruled in favor of the state of Tennessee, requiring Campbell Arms, LLC to refund $200,000 plus $47,016 in interest for breach of a performance contract. In the year 2017, Campbell, LLC agreed to create, fill, and maintain 50 new jobs at its Hill Road facility in the McKenzie (Airport) Industrial Park-South. Blaine Campbell is the principal of Campbell Arms, LLC. Attorneys for the state were granted the requested summary judgment.
An attorney for Campbell Arms indicated Campbell Arms was unable to fulfill its obligation to create the jobs because the landlord, the McKenzie Industrial Development Corporation (IDB), evicted Campbell from the building. The attorney contended the McKenzie IDB served as a hostile landlord. The company then relocated outside of Huntingdon and attempted to fulfill its obligation to create 50 jobs.
Dusty King, attorney for the IDB, said the IDB did file suit to evict Campbell for non-payment, however, the case was abandoned before reaching court.
King said the IDB was not a party to the ECD and Campbell’s contract. It only served as a conduit for the funds to transfer from the state to Campbell.
The attorneys for the state said the contract was a two-party agreement between the ECD and Campbell.
The attorney for Campbell argued the IDB was an integral part of a three-party agreement and should not be simply excused from this obligation.
Chancellor Hoover ruled in favor of the state, requiring Campbell to repay the Fast Track grant plus interest.
Still pending in a separate lawsuit filed by Campbell against the McKenzie Industrial Development Corporation.