Head Kandy LLC v. McNeill
0:23-cv-60345
S.D. Fla.Mar 18, 2025Background
- In 2018, Head Kandy, LLC (HK) acquired the assets of Lashed Out, LLC from Kayla McNeill, who became a 20% owner and creative director at HK.
- HK discovered alleged mismanagement and self-dealing by McNeill, culminating in her termination in early 2023 after HK sent notice letters and she allegedly failed to cure cited breaches.
- HK sued McNeill for breach of contract (Executive Employment Agreement, EEA) and breach of fiduciary duty. McNeill countersued with numerous claims, including for civil theft, wage violations, emotional distress, and retaliation.
- HK sought summary judgment on its claims and on all of McNeill’s counterclaims; Falic (HK's managing member) moved for summary judgment on counterclaims brought against him personally.
- The court found McNeill abandoned her counterclaims by not defending them in opposition to summary judgment, but found factual disputes as to HK’s claims precluded summary judgment for HK on its claims.
- The court granted summary judgment to Falic on all claims against him personally and substantially dismissed McNeill’s claims against him and HK.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether McNeill breached the EEA restrictive covenants | McNeill violated noncompete and nonsolicit terms via social media and hiring former HK employees | There are factual disputes about HK's claimed damages and whether the covenants were necessary and justified | Factual disputes—summary judgment denied |
| Breach of Fiduciary Duty by McNeill | Misused company resources, self-dealing, personal expenses charged to HK | Denies factual allegations; disputes whether conduct was improper and whether any damages resulted | Factual disputes—summary judgment denied |
| Viability of McNeill’s Counterclaims | (No argument mounted in opposition) | Failure to defend or cite evidence; arguments deemed abandoned | Deemed abandoned—summary judgment granted |
| Falic’s Personal Liability on Third-Party Claims | Personally liable for civil theft, wage violations, IIED, retaliation | Claims concern only official acts as managing member, no evidence of personal wrongful conduct | No viable legal/evidentiary basis—granted |
| Applicability of Colorado Wage Claim Act | CWCA applies because McNeill is a Colorado resident | McNeill worked from North Carolina; HK is a Delaware LLC; no link to Colorado employment | Act does not apply—summary judgment granted |
Key Cases Cited
- Celotex Corp. v. Catrett, 477 U.S. 317 (summary judgment standard - movant entitled if no genuine issue of material fact)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (summary judgment - factual disputes must be genuine and material)
- Gracey v. Eaker, 837 So. 2d 348 (Fiduciary duty elements under Florida law)
- Vega v. T-Mobile USA, Inc., 564 F.3d 1256 (Breach of contract requirements under Florida law)
- Metro. Life Ins. Co. v. McCarson, 467 So. 2d 277 (Defining extreme and outrageous conduct for IIED in Florida)