Flow Formulas v. Kulik Consulting

CourtColorado Court of Appeals
DecidedNovember 21, 2024
Docket23CA1913
StatusUnpublished

This text of Flow Formulas v. Kulik Consulting (Flow Formulas v. Kulik Consulting) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flow Formulas v. Kulik Consulting, (Colo. Ct. App. 2024).

Opinion

23CA1913 Flow Formulas v Kulik Consulting 11-21-2024

COLORADO COURT OF APPEALS

Court of Appeals No. 23CA1913 Jefferson County District Court No. 22CV30530 Honorable Christopher Rhamey, Judge

Flow Formulas, LLC, a Virginia limited liability company, Hannah Reese, Caleb Reese, Ryan Mehaffey, and Bill Hannah,

Plaintiffs-Appellees,

v.

Kulik Consulting LLC, a Virginia limited liability company,

Defendant-Appellant.

APPEAL DISMISSED AND CASE REMANDED WITH DIRECTIONS

Division VI Opinion by JUDGE BROWN Welling and Graham*, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e) Announced November 21, 2024

Spencer Fane, LLP, Jeremy A. Moseley, Denver, Colorado, for Plaintiffs- Appellees

Leland Shafer, LLP, Thomas D. Leland, Maxwell N. Shafer, Denver, Colorado, for Defendant-Appellant

*Sitting by assignment of the Chief Justice under provisions of Colo. Const. art. VI, § 5(3), and § 24-51-1105, C.R.S. 2024. ¶1 Defendant, Kulik Consulting LLC, appeals the district court’s

order granting partial summary judgment in favor of plaintiffs and

counterclaim defendants, Hannah Reese, Caleb Reese, and Ryan

Mehaffey (collectively, the individual plaintiffs), and in favor of

counterclaim defendants, Bill Hannah and RDM Business Solutions

LLC (RDM). Hannah Reese, Caleb Reese, Ryan Mehaffey, and Bill

Hannah (collectively, the individual owners) are members of Flow

Formulas, LLC. Flow Formulas alone initiated this action against

defendants and counterclaim plaintiffs, Robert Kulik and Kulik

Consulting (collectively, the Kulik defendants).1 By stipulation

several months later, the individual owners and RDM were joined as

parties.2

1 Kulik Consulting is owned by Robert Kulik, who is a named

defendant to the claims asserted in the operative complaint and against whom partial summary judgment ultimately entered but who is not a party to this appeal. 2 The individual plaintiffs were joined as plaintiffs and counterclaim

defendants while Bill Hannah and RDM, which is owned by Ryan Mehaffey, were joined as “counterclaim defendants.” It is unclear how Hannah and RDM could be joined as “counterclaim defendants” without first being joined as plaintiffs; instead, it appears that they should have been joined as third-party defendants. In addition, as best we can tell, Kulik asserted no claims against RDM, and RDM asserted no claims against any other party, so query whether RDM is a proper party to the underlying litigation. RDM is not a party to this appeal.

1 ¶2 After the individual owners and Kulik Consulting filed

cross-motions for summary judgment, the district court entered an

order granting partial summary judgment in favor of the individual

owners. Six months later, the court certified the partial summary

judgment order as a final judgment for purposes of appeal under

C.R.C.P. 54(b). In doing so, the court confirmed that the partial

summary judgment order resolved one claim in favor of the

individual plaintiffs against the Kulik defendants, dismissed three

other of the individual plaintiffs’ claims as moot, and dismissed or

denied twelve of the Kulik defendants’ counterclaims against the

individual owners.

¶3 On appeal, Kulik Consulting contends that (1) Flow Formulas

lacked standing to bring the underlying civil suit; (2) the district

court erred by granting partial summary judgment in favor of the

individual owners; (3) the court erred by entering judgment on

counterclaims that were not addressed in the cross-motions for

summary judgment; and (4) the court erred by certifying its partial

summary judgment order for immediate appeal under C.R.C.P.

54(b). Because we agree with Kulik Consulting’s last contention, we

2 dismiss the appeal and remand the case for further proceedings.

As a result, we do not address the remaining contentions.

I. Background

¶4 Flow Formulas is a limited liability company formed under the

Colorado Limited Liability Company Act. See §§ 7-80-101 to -1101,

C.R.S. 2024. In 2020, Kulik Consulting joined Flow Formulas.3

Beginning in April 2022, after disagreements arose between the

individual plaintiffs and Kulik, Kulik Consulting sought to buy out

the individual owners’ interests pursuant to the company’s

operating agreement. Each of the individual owners responded by

offering to buy out Kulik Consulting’s interest. Ultimately, the

parties refused to sell their respective interests.

¶5 In December 2022, Flow Formulas commenced the underlying

lawsuit against the Kulik defendants. The operative complaint

asserts the following claims:

Asserted Claim Asserted By Against Flow Kulik 1. Breach of Fiduciary Duty Formulas defendants

3 Kulik denies that he is the alter ego of Kulik Consulting or that he

was a member of Flow Formulas in an individual capacity. This issue does not affect our disposition, and our reference to Kulik Consulting here is not binding on the district court on remand.

3 Asserted Claim Asserted By Against Intentional Interference with Flow Kulik 2. Athlete Promotional Contracts Formulas defendants Breach of the Operating Flow Kulik 3. Agreement Formulas defendants Conversion of Company Flow Kulik 4. Property Formulas defendants Declarations re: Kulik’s Capital Flow Kulik 5. Account Formulas defendants Declaration that the Buy/Sell Flow Kulik 6. Provision Does Not Apply to Formulas defendants Athlete Promotional Contracts Flow Kulik 7. Breach of Duty of Loyalty Formulas defendants Declaration of the Ownership Sale that Kulik Must Make to Individual Kulik 8. Mehaffey, or Alternatively, to Plaintiffs defendants Another Owner Who Elected to Purchase His Interest Breach of the Operating Kulik 9. Mehaffey Agreement with Mehaffey defendants Breach of the Operating Kulik 10. Caleb Reese Agreement with Caleb Reese defendants Breach of the Operating Hannah Kulik 11. Agreement with Hannah Reese Reese defendants Breach of Duty of Loyalty to Individual Kulik 12. Other Owners Plaintiffs defendants ¶6 The Kulik defendants assert the following counterclaims:

Asserted Counterclaim Asserted By Against Declaratory Judgment Regarding Kulik Consulting’s Kulik Ryan 1. Offer to Purchase Mehaffey’s Consulting Mehaffey Membership Interest and Mehaffey’s Response

4 Asserted Counterclaim Asserted By Against Breach of the Operating Kulik Ryan 2. Agreement Consulting Mehaffey Equitable Remedy of Specific Kulik Ryan 3. Performance Consulting Mehaffey Declaratory Judgment Regarding Kulik Consulting’s Kulik 4. offer to Purchase Reese’s Caleb Reese Consulting Membership Interest and Reese’s Response Breach of the Operating Kulik 5. Caleb Reese Agreement Consulting Equitable Remedy of Specific Kulik 6. Caleb Reese Performance Consulting Declaratory Judgment Regarding Kulik Consulting’s Kulik Hannah 7. offer to Purchase Reese’s Consulting Reese Membership Interest and Reese’s Response Breach of the Operating Kulik Hannah 8. Agreement Consulting Reese Equitable Remedy of Specific Kulik Hannah 9. Performance Consulting Reese Declaratory Judgment Regarding Kulik Consulting’s Kulik 10. offer to Purchase Hannah’s Bill Hannah Consulting Membership Interest and Hannah’s Response Breach of the Operating Kulik 11. Bill Hannah Agreement Consulting Equitable Remedy of Specific Kulik 12. Bill Hannah Performance Consulting Declaratory Judgment as to Kulik Individual 13. Value of Capital Account Consulting Plaintiffs Breach of the Operating Kulik Individual 14.

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Flow Formulas v. Kulik Consulting, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flow-formulas-v-kulik-consulting-coloctapp-2024.