Dussias v. Gleckler

CourtDistrict Court, N.D. Illinois
DecidedJune 9, 2025
Docket1:21-cv-05709
StatusUnknown

This text of Dussias v. Gleckler (Dussias v. Gleckler) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dussias v. Gleckler, (N.D. Ill. 2025).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

DEAN H. DUSSIAS, ) ) Plaintiff, ) ) No. 21-cv-5709 v. ) ) Judge April M. Perry MERRI GLECKLER and TMG ) KREATIONS, LLC, a Delaware limited ) Liability company, d/b/a KASHWERE, ) ) Defendants. ) )

OPINION AND ORDER This case involves a dispute over membership in a limited liability company. In 2019, Dean Dussias (“Plaintiff”) and Defendant Merri Gleckler began discussing the possibility of Plaintiff joining as a member of Defendant TMG Kreations, LLC d/b/a Kashwere (“TMG”), a Delaware limited liability company Gleckler had founded with a business partner in 2009. For a time, Plaintiff worked for TMG as its President while continuing to discuss with Gleckler Plaintiff’s membership in TMG. The parties never signed any written documents confirming Plaintiff’s membership. In April 2021, Plaintiff was terminated from TMG. At this time, Plaintiff believed he was a member of TMG and sued Gleckler and TMG in Illinois state court seeking a declaratory judgment and other relief.1 Defendants removed the case to federal court in October 2021, and the parties have been litigating ever since.

1 The six counts in Plaintiff’s complaint are for declaratory judgment as to his membership interest in TMG (Count I), accounting and constructive trust as to the same (Count II), breach of contract (Count III), breach of fiduciary duty (Count IV), promissory estoppel (Count V), and unjust enrichment (Count VI, pled in the alternative to Count III). Doc. 1-3 at 13-19. Pending now is Defendants’ motion for summary judgment on all of Plaintiff’s claims. The central issue raised in this summary judgment motion is the legal significance of what may have transpired during and after phone calls between Gleckler and Plaintiff in June 2020. Plaintiff claims that during those phone calls, the two agreed to the terms of Plaintiff becoming a member of TMG. Defendants dispute that any enforceable agreement was reached. For the

reasons set forth below, Defendants’ summary judgment motion is denied. LEGAL STANDARD Summary judgment is appropriate when there is no genuine dispute of material fact such that the movant is entitled to judgment as a matter of law. FED. R. CIV. P. 56(a). The movant bears the initial burden of demonstrating the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). The party opposing summary judgment must then come forward with specific facts showing there is a genuine issue for trial. LaRiviere v. Bd. of Trs., 926 F.3d 356, 359 (7th Cir. 2019). To avoid summary judgment, the nonmovant must show more than metaphysical doubt as to the material facts. Matsushita Elec. Indus. Co. v. Zenith

Radio Corp., 475 U.S. 574, 586 (1986). In reviewing the facts, the court construes them in the light most favorable to the nonmovant and draws all reasonable inferences in his favor but need not draw inferences supported by only speculation or conjecture. Swetlik v. Crawford, 738 F.3d 818, 829 (7th Cir. 2013). FACTS AT SUMMARY JUDGMENT The Court draws the following facts from the parties’ Rule 56.1 statements and responses and materials cited therein.2 The parties vehemently disagree about the inferences that should be

2 Local Rule 56.1 sets forth the procedures parties must follow when filing and responding to motions for summary judgment in the Northern District of Illinois. 2 drawn from the facts and raise numerous evidentiary objections to each other’s proposed facts. Overall, however, there are few instances where the parties dispute the facts themselves. I. Background In December 2009, Glecker and non-party Cedric Reingold formed TMG Kreations, LLC as a Delaware limited liability company. Doc. 111 ¶ 1. TMG was governed by an operating

agreement (“TMG Operating Agreement” or “Operating Agreement”) that set conditions for the admission of new members. It provided that “[a] person may acquire Membership Interests directly from the Company upon the written consent of all Members” and that a person acquiring membership interests “shall be admitted … after the person has agreed to be bound by the terms of this Operating Agreement by executing a consent in the form of Exhibit C.” Doc. 100 ¶ 6. The “Exhibit C” referenced in the TMG Operating Agreement was a document entitled “New Member’s Consent” that provided for the undersigned to be bound by the Operating Agreement and contained a line for members to sign and date. Id. ¶ 7. Another section of the TMG Operating Agreement provided further that it “shall not be modified or amended if [sic] any

respect except by a written instrument executed by all of the Members” and that it was governed by Delaware law. Id. ¶¶ 8-9. In 2018, a dispute arose between Glecker and Reingold, which led to a lawsuit that ultimately resulted in Reingold’s exit from TMG. Id. ¶¶ 3-6; Doc. 23 at 2. In the summer of 2019, Glecker and Plaintiff began discussing Plaintiff joining TMG as a member to replace Reingold. Doc. 110 ¶ 6; Doc. 23 at 2. Plaintiff asserts that he agreed to work for TMG only on the condition that he be made a member, though Defendants dispute that Plaintiff articulated such a condition. Doc. 110 ¶ 6.

3 Plaintiff began working full-time at TMG in 2019. Id. ¶ 8. On September 20, 2019, Gleckler asked Plaintiff if he had begun preparing a written operating agreement. Id. ¶ 9. From February 2020 until June 2020, Plaintiff and Gleckler exchanged draft operating agreements and term sheets reflecting the details of Plaintiff’s admission into TMG. Id. ¶ 11-13; see also Doc. 91-2 at 301-312, 323-351. Some of Gleckler’s drafts contemplated a multi-year vesting period

before Plaintiff acquired any membership stake. See Doc. 100 ¶ 24. On June 7, 2020, Plaintiff e- mailed Gleckler the last of these exchanged term sheets, with the e-mail stating, “Please see attached; call you in an hour.” Doc. 91-2 at 303. Neither Gleckler nor Plaintiff signed this or any other exchanged document. Doc. 100 ¶¶ 60. II. The June 2020 phone calls Plaintiff asserts that between June 6 and June 15, 2020, he and Gleckler had several phone calls, during which the pair finalized and came to agreement on the terms of his membership in TMG. Doc. 110 ¶ 14. The terms of this supposed agreement included that Gleckler and Plaintiff would own 70 and 30 percent of TMG, respectively; that Plaintiff would

begin taking a draw against profits beginning July 1, 2020 in proportion to his membership interest (as opposed to a salary, wage, or other compensation); that profits would be distributed at year end reflecting their membership shares; and that Plaintiff would begin receiving certain member perquisites. Id. ¶ 15. Also around this time, Plaintiff asserts that he and Gleckler agreed to split a royalty payment from a TMG licensee based on their pro rata membership interest. Id. ¶ 20. Additionally, Gleckler and Plaintiff agreed on these calls that Plaintiff would make a $20,000 capital contribution to TMG as part of their agreement. Id. ¶¶ 15, 21. Plaintiff further asserts that during these calls, Gleckler requested that Plaintiff’s share in TMG’s profits begin on July 1, 2020, rather than August 2019 as originally discussed. Id. ¶ 17.

4 According to Plaintiff, this meant giving up his draw for that time period and so he agreed to the later profit-sharing date only on the condition that negotiations were concluded and that he be made a member beginning July 1, 2020.

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