Limelight Trading Cards, LLC v. Fye
4:25-cv-01562
S.D. Tex.May 28, 2025Background
- Plaintiff Limelight Trading Cards, LLC purchased assets of Fye Sports Cards, LLC via a bankruptcy Asset Purchase Agreement, after Fye Sports Cards, LLC suffered financial difficulties and filed for bankruptcy.
- David Fye operated Fye Sports Cards and personally created the "Black Label Breaks" (BLB) Facebook group before creating Fye Sports Cards, LLC. BLB group is a private, highly valuable social media group related to the sports card hobby.
- After the asset purchase, Fye and Limelight worked together with Fye using the BLB group to market and sell for Limelight, though the group’s ownership was disputed.
- The working relationship dissolved in February 2025, after which Fye removed Limelight from the BLB group and began posting under his own name, causing confusion among group members.
- Limelight sought a preliminary injunction for return of control over the Whatnot account, Facebook page, redemption cards, and the BLB group; Fye agreed to transfer all but the BLB group.
- The central legal dispute is whether the BLB group and name were assets of Fye Sports Cards, LLC transferred to Limelight, or Fye’s personal property.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Ownership of BLB group/name | BLB was part of the assets bought under Asset Purchase | BLB was Fye’s personal property, not LLC’s asset | Not transferred; Fye owns BLB |
| False designation/unfair competition | Fye’s use of BLB post-sale causes market confusion | Limelight did not acquire BLB; no rights to assert | No likelihood of success for Limelight |
| Violation of Bankruptcy Confirmation Order | Order/APA required transfer of all LLC’s assets, incl. BLB | BLB was not LLC’s asset; not subject to order | No likelihood of success for Limelight |
| Control over Whatnot acct/Facebook/redemption cards | APA transferred these assets to Limelight | Fye does not contest transfer of these assets | PI granted to Limelight on these only |
Key Cases Cited
- Meis v. Sanitas Serv. Corp., 511 F.2d 655 (5th Cir. 1975) (setting out preliminary injunction standard)
- Martinez v. Matthews, 544 F.2d 1233 (5th Cir. 1976) (disfavored injunctions altering status quo require clear showing)
- Byrum v. Landreth, 566 F.3d 442 (5th Cir. 2009) (elements for preliminary injunction)
- El Paso Healthcare Sys., Ltd. v. Murphy, 518 S.W.3d 412 (Tex. 2017) (elements for tortious interference under Texas law)
- Prudential Ins. Co. of Am. v. Fin. Rev. Servs., Inc., 29 S.W.3d 74 (Tex. 2000) (requirements for claim of tortious interference with existing contract)