RODNEY HARBACK v. EDDIE’S BODY SHOP, LLC ET AL. - Articles

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RODNEY HARBACK v. EDDIE’S BODY SHOP, LLC ET AL.

Posted by: Azya Thornton on Jul 8, 2026

Court: TN Court of Appeals

Attorneys 1: Sharon Reynolds Clark and Sara Newcomb Lawson, Kingston, Tennessee, for the appellants, Eddie’s Body Shop, LLC, Adam Clark, and Brandon Moore.

Attorneys 2: George R. Arrants and Hilary L. Magacs, Knoxville, Tennessee, for the appellee, Rodney Harback.

Judge(s): DAVIS

This appeal arises from a breach of contract lawsuit following the sale of a body shop business. Prior to the sale, the owner entered into a paint-purchasing agreement requiring him to purchase $900,000 worth of paint over time in exchange for discounts and up-front “pre-bate” payments. Under the paint-purchasing agreement, the paint supplier could terminate the agreement if the business was sold without the supplier’s prior written consent. The owner later sold his business to buyers pursuant to an asset purchase agreement whereby the buyers agreed to take on the business’s paint-purchasing obligations. The buyers initially kept buying paint from the same supplier but eventually stopped. The paint supplier demanded repayment of the up-front funds from the prior owner under his personal guarantee. The prior owner then sued the buyers, asserting that they were required to hold him harmless. The buyers filed a counterclaim asserting that the prior owner committed the first breach by selling the business without the paint supplier’s consent, resulting in the buyers never receiving the expected value of the deal. The trial court ruled in the prior owner’s favor. The buyers appeal. We affirm.

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