Glitz Trading, LLC v. Brent Spicer, et al.

District Court, E.D. New York·Decided September 14, 2026·No. 1:25-cv-04668·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK -------------------------------------------------------x GLITZ TRADING, LLC,

Plaintiff, MEMORANDUM & ORDER - against - 25-CV-4668 (PKC) (RML)

BRENT SPICER, et al.,

Defendants. -------------------------------------------------------x PAMELA K. CHEN, United States District Judge: This case arises out of a dispute among former business partners in the tattoo industry, who marketed and sold products under the trade name “Ink Beetle.” (See generally Compl., Dkt. 1.) Plaintiff Glitz Trading, LLC (“Glitz”) is a New York limited liability company that owns 40% of the alleged “Ink Beetle Partnership.” (Id. ¶¶ 3, 9.) Defendants are Rebel Tattoo Company, LLC (“Rebel Tattoo”), Brent Spicer (“Brent”), and Christian Spicer (“Christian”), who collectively own the other 60% of the partnership. (Id. ¶¶ 4–6, 9.) Defendants have moved to dismiss the action in its entirety for failure to state a claim upon which relief can be granted. (See Mot. to Dismiss, Dkt. 24.) For the reasons explained below, Defendants’ motion is denied. BACKGROUND1 I. Factual Background The parties here are all “active in the tattoo industry.” (Compl., Dkt. 1, ¶ 10.) Rebel Tattoo is an Ohio limited liability company that is owned and operated by Brent Spicer (and, possibly,

1 The following allegations are taken from the Complaint and documents attached to the Complaint as exhibits. See DiFolco v. MSNBC Cable L.L.C., 622 F.3d 104, 111 (2d Cir. 2010) (“In considering a motion to dismiss for failure to state a claim pursuant to Rule 12(b)(6), a district court may consider the facts alleged in the complaint, documents attached to the complaint as exhibits, and documents incorporated by reference in the complaint.” (citations omitted)). For purposes of this Memorandum & Order, the Court assumes that all facts alleged in the Complaint Christian Spicer). (See id. ¶¶ 6–7, 12–18.) Rebel Tattoo marketed and sold a line of tattoo aftercare products called “Ink Beetle.” (See id. ¶¶ 6–7, 12–13, 32.) In January 2024, “a distribution company with common ownership of” Plaintiff Glitz reached out to Brent to “offer to be a distributor for Ink Beetle,” but Brent declined. (Id. ¶ 12.) Later that month, however, Brent reached out to Glitz to ask for “assistance with marketing and

distributing Ink Beetle products.” (Id. ¶ 13.) In February 2024, Brent met with Glitz’s team2 to discuss a possible collaboration, and Brent agreed to move forward with the venture. (See id. ¶¶ 14–15.) In March 2024, Glitz began promoting Ink Beetle products, although the parties had not yet executed a formal written agreement. (See id. ¶¶ 16–22.) Later that month, one of Glitz’s principals “drove from New York to Ohio to meet with the Spicers,” and the parties began communicating about the terms of the written agreement. (See id. ¶ 18.) A draft Memorandum of Understanding (“MOU”), drafted by Brent, was circulated on March 20, 2024; it was finalized and fully executed on or about March 28, 2024. (See id. ¶¶ 21, 25.)

The MOU reads as follows (relevant portions excerpted): MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding (“MOU”) by and between Brent Spicer, Christian Spicer, and Rebel Tattoo Company LLC (collectively, “Rebel”), [and] Glitz LLC (“Glitz”) (altogether, the “Parties”) . . . is for the purpose of aligning intent and achieving objectives related to the development of Ink Beetle LLC, and any other form, name, trade name or d/b/a that may be elected (the “Company”).

are true and draws all reasonable inferences in Glitz’s favor. See Peretti v. Authentic Brands Grp. LLC, 33 F.4th 131, 133 n.1 (2d Cir. 2022) (citing Koch v. Christie’s Int’l PLC, 699 F.3d 141, 145 (2d Cir. 2012)). 2 Glitz, a limited liability corporation, has four members: Austin Werner, Qing Zhang, Sean Liao, and David Gutierrez. (See Compl., Dkt. 1, ¶ 3.) WHEREAS, Rebel has established the Company for the purposes of providing tattoo paraphernalia and other related goods and services; AND WHEREAS, Glitz approached Rebel about providing business development services to the Company in the capacity of a managing, minority Member in the Company; THEREFORE, let this correspondence serve as a Memorandum of Understanding (“MOU”) and bind the Parties in principal according to the following terms: INTENT Glitz shall provide business development, business management, social media management, consulting, market analysis, and any other related services for the Company, more specifically outlined as follows (altogether, the “Services”):

• Manage Company online sales platforms and seller pages (including but not limited to Shopify); • Manage, handle, and ship sales inventory; • Manage Company social media pages (including but not limited to Facebook, Instagram, and Tik Tok); . . . • Consult and manage day-to-day business operations; . . . [and] • Any other related or ancillary services necessary to carry out the above functions or as agreed upon by the Parties now or in the future. In addition, Glitz[] shall fund forty percent (40%) of any new Company cost for obtaining a patent over specific commercially valuable product developments (the “Patent”), with an initial ten-thousand-dollar ($10,000.00) investment (altogether, the “Patent Investment”). The Parties shall both hold patent rights to any future Patent 60/40 in favor of Rebel. As consideration for the above listed Services and Patent Investment, Rebel will provide Glitz sweat equity in the form of forty percent (40%) of the outstanding shares of the Company. . . . [3] With respect to the Patent: the Patent shall be owned solely and exclusively by the Company, and all Parties hereto agree not to utilize, sell, license, or otherwise cloud or encumber Patent rights for personal benefit or for any other purpose other than in furtherance of the Company and its best interests. Any new patent(s) developed by any Party hereto after the effective date of this Agreement and in furtherance of

3 The MOU also includes a “sweat equity transfer” provision stating that 20% of Glitz’s equity would be guaranteed and the other 20% would be subject to total or partial clawback over a period of three years if the Company did not meet certain benchmarks for gross increases in sales. (See MOU, Dkt. 1-3, at 2.) The details of the sweat equity transfer/clawback provision are not relevant for purposes of this Memorandum & Order. the Company’s business and best interests shall belong to each Party on a pro rata basis according to each Party’s ownership percentage of the Company. SIGNATURES INTENDING TO BE BOUND, the Members have executed this MOU and this Agreement is effective as of the date of its first writing:

REBEL TATTOO COMPANY, LLC:

3/28/24 Date By: € Authorized Representative Authorized Representative

GLITZ LL©:

Date Cake Representative CHARLES TINEO NOTARY PUBLIC, STATE OF NEW YORK Registration No. 01716444675 ualified in Queens,Co Commission Expires “e[e8]eoee

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