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Battle over $5 million Chateau Country estate ends for Tigani

Eight years after automobile magnate John Hynansky delivered a $113,290 Porsche to N.K.S.Distributors Inc. as part of a business deal involving the sale of Hynansky's $5 million home to liquor executive Chris Tigani, an ugly dispute between the two has been settled.Hynansky – who started out as a car salesman and built an international automob...

Eight years after automobile magnate John Hynansky delivered a $113,290 Porsche to N.K.S.Distributors Inc. as part of a business deal involving the sale of Hynansky's $5 million home to liquor executive Chris Tigani, an ugly dispute between the two has been settled.

Hynansky – who started out as a car salesman and built an international automobile, construction and real estate empire with Delaware car dealerships in Delaware under Winner Automotive Group of Wilmington – sued Tigani in 2008 in Delaware Superior Court after the multi-faceted transaction with Tigani went bad.

The core of the transaction was Tigani's proposed purchase of Hynansky's roughly 8-acre estate on Kennett Pike in Greenville. Tigani agreed in the spring of 2007 to buy the property, then began making extensive renovations on the Tudor-style house, including demolition of an extension, according to court documents. A year later, Tigani "renounced the deal," leaving the 1920 house "in a state of disarray," the documents say.

Hynansky first filed a lawsuit against Tigani and N.K.S. – a Tigani family beer distributorship that Chris once headed – in Superior Court in 2008.

In February, Hynansky separately sued N.K.S. in Delaware Court of Chancery over the same transaction, alleging Tigani and N.K.S. are "alter egos" in the transaction. N.K.S., near New Castle, is the long-time exclusive distributor of Anheuser-Busch Companies Inc. products in Delaware.

Hynansky's suit alleged Tigani used N.K.S. and its assets "in a sophisticated shell game to convince the world that Tigani had the wherewithal to support his lifestyle."

"Tigani's use of NKS assets as his own worked as a fraud on Hynansky and inflicted an injustice," Hynansky said in his February lawsuit.

Tigani vigorously denied the allegations. But in the last two weeks, they settled both cases.

Jeffrey Weiner, a Wilmington attorney representing Hynansky, said "the parties have amicably resolved the dispute(s) and the claims have been dismissed."

"It's been a long time, but it's finally done," Hynansky, 72, said Wednesday from Kiev, Ukraine. "I have ton of companies in the Ukraine and I have other things to do."

For Tigani, the case settlements mark the end of a long legal saga that resulted in revelations about his lifestyle and business dealings.

Tigani pleaded guilty in 2011 to campaign finance fraud and tax evasion, was sentenced to two years in federal prison and served his time.

He now heads World Class Wholesale, a liquor distributorship near New Castle.

"I am happy this chapter is over and we can all move forward," Tigani said Friday.

Lawyers for N.K.S. said the company does not comment on lawsuits.

Du Pont estate

The saga of a lawsuit over a Chateau Country estate once owned by du Pont family members exposed how Delaware's insulated world of big money sometimes did business.

In the years leading up to the house deal, Hynansky and Tigani were friendly. Both were big names in the Delaware business community and ran prominent family businesses.

"Among other things, the two men explored numerous joint investment opportunities," the more-recent lawsuit says.

At one point, the two co-owned a corporate jet.

They owned homes near each other in the exclusive Greenville area. Hynansky had been living in a nearly 12,000-square-foot house on Kennett Pike that he and his wife Deanna bought in 1983 for $569,875. But with their 2005 divorce, the plan was to sell the house as part of the property distribution, the lawsuit says.

"When Tigani learned the home might be for sale, he begged Hynansky to sell it to him, describing it as 'the best property in Delaware,' " the same lawsuit alleged.

By spring 2007, Hynansky and Tigani agreed for Tigani to take immediate possession of the six-bedroom, six-bathroom house, with its sale to close in two years, court papers say.

In the meantime, Tigani would pay monthly rent plus three lump-sum payments of $500,000 toward the purchase price, the lawsuit says.

The first lump sum would be paid through elimination of a $440,000 debt Hynansky owed on his purchase of N.K.S.'s interest in the jet, court papers say.

In addition, the deal called for N.K.S. to lease part of 240,000-square-foot warehouse in Dover owned by Sunstar Ventures LLC, a Hynansky-owned entity. The rent for both properties was set to approximate interest on the $5 million home.

The deal also called for one of Hynansky's dealerships to transfer a Porsche for Tigani to use, according to the lawsuit.

Once the leases expired on the home and warehouse, Tigani would take legal title to the home and pay the remaining $3.5 million balance, the lawsuit says.

"Tigani celebrated the agreement by causing N.K.S. to bestow a gift of expensive wine on Hynansky ...," the lawsuit says.

Deal falls apart

Once the deal was struck, Hynansky gave Tigani keys to the Kennett Pike home.

"Tigani promptly brought in designers and began extensive renovations of the home," the lawsuit says. "He tore down an extension in the rear of the home, ripped out landscaping, began changing the configuration of the large built-in pool and made modifications to virtually every element and room of the home."

Court documents allege Tigani "caused N.K.S. to pay over $100,000 to third-party contractors" for the renovations.

Ten months later, Tigani renounced the deal, the lawsuit says.

"He terminated the uncompleted work on the home, leaving the premises in a state of disarray," according to the suit.

Rent on the home never was paid, nor were any lump sum payments, according to the lawsuit. N.K.S. did not pay rent on the Dover warehouse, Hynansky's suit alleged.

"Tigani went so far as to demand that Hynansky reimburse the costs of the unfinished renovations," his suit says.

Tigani denied all of Hynansky's allegations.

In 2008, Tigani's lawyer called them "baseless" and an "undignified attempt to exact revenge."

Tigani countered at the time that the renovations were being directed by an employee of Hynansky and his construction company, with Hynansky's oversight.

Home goes back

Tigani ended up buying a Westover Hills mansion, formerly owned by MBNA America founder Charles Cawley, in June 2008.

In a nasty 2010 court battle with his father, Robert Tigani, over control of the family's liquor business, Chris Tigani testified that the fight with his father erupted when he bought the 24,000-square-foot Cawley mansion.

That, Tigani testified, sent his father "over the edge."

His father fired him from the third-generation liquor distributorship in 2009. The Westover Hills mansion went into foreclosure days after Tigani's one-year mortgage loan came due in 2009, according to court documents.

Chris Tigani filed for bankruptcy in 2010, just hours before a sheriff's sale of the Westover Hills house was to take place. After a bankruptcy court judge ruled that Wilmington Trust could proceed with the sheriff's sale, the former Cawley house went to Wilmington Trust for $2.1 million the next year.

The house today

Hynansky alleged in his most-recent lawsuit that he was "forced to reacquire" his Kennett Pike home in the middle of major, uncompleted renovations.

"At a time when the market for high-end residences was in a sustained downturn," the lawsuit alleges.

Today, the Kennett Pike home is owned by Hynansky's son, Michael, and Michael's wife, Ericka, according to New Castle County property records. The house is in excellent condition, the records say.

In 2010, Hynansky told The News Journal he spent about $700,000 renovating the house.

His son now runs the Winner automobile business, he said, and he runs the Ukrainian real estate, automobile and construction businesses.

Hynansky said he pursued the litigation for seven years for one simple reason: "I have my own principles."

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