Headfirst Baseball LLC v. Elwood

168 F. Supp. 3d 236, 2016 WL 912166
CourtDistrict Court, District of Columbia
DecidedMarch 7, 2016
DocketCivil Action No. 2013-0536
StatusPublished
Cited by8 cases

This text of 168 F. Supp. 3d 236 (Headfirst Baseball LLC v. Elwood) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Headfirst Baseball LLC v. Elwood, 168 F. Supp. 3d 236, 2016 WL 912166 (D.D.C. 2016).

Opinion

*239 MEMORANDUM OPINION

REGGIE B, WALTON, United States District Judge

Four motions are currently pending before the Court: (1) Brendan V. Sullivan Ill’s Motion for Summary Judgment on Counts Three, Four, and Six of Robert Elwood’s Amended Counterclaim (“P’ship Summ. J. Mot.”); (2) the Motion to Bifurcate and Try First Partnership Claim and Memorandum in Support (“Bifurcation Mot.”); (3) Brendan V. Sullivan Ill’s Motion for Summary Judgment on Count Five, and Sullivan and Headfirst Professional Sports Camps LLC’s Joint Motion for Partial Summary Judgment on Counts One and Two, of Robert Elwood’s Amended Counterclaim (“Estoppel/Buyout Summ. J. Mot.”); and (4) Stacey Elwood’s Motion for Summary Judgment as to Count I of the Second Amended Complaint and Memorandum in Support (“Conversion Summ. J. Mot.”). After careful consideration of the parties’ submissions, 1 as well as the parties’ oral arguments at the January 27, 2016 hearing, and for the reasons that follow, the Court concludes that it must deny summary judgment on the issue of partnership vel non, grant in part and deny in part the motion to bifurcate the trial, grant summary judgment in favor of plaintiff Brendan V. Sullivan III on defendant Robert Elwood’s promissory estoppel counterclaim, grant partial summary judgment in favor of plaintiffs Brendan V. Sullivan III and Headfirst Professional Sports Camps LLC on defendant Robert Elwood’s counterclaims to the extent that the counterclaims seek a compelled buyout of defendant Robert Elwood’s interests in any Headfirst entity as a remedy, and grant summary judgment in favor of defendant Stacey Elwood on plaintiffs Head *240 first Baseball LLC and Headfirst Camps LLC’s conversion claim.

I.BACKGROUND

A. The Various Headfirst Limited Liability Companies (“Headfirst LLCs”)

1. Headfirst Baseball LLC

Plaintiff Brendan V. Sullivan III (“Sullivan”) assisted in the formation of Headfirst Baseball LLC (“Headfirst Baseball”) under the laws of the District of Columbia in 1997. P’ship Opp’n, Defendant Robert Elwood’s Statement of Material Facts in Response to Brendan V. Sullivan’s Statement of Material Facts in Support of His Motion for Summary Judgment on Counts Three, Four, and Six of Elwood’s Amended Counterclaim (“P’ship Opp’n Facts”) ¶ 2; see also id. ¶ 3. At that time, plaintiff Sullivan and non-party Sean Flikke (“Flikke”) were the only members of Headfirst Baseball and each owned 50% of the company. Id. ¶ 4. In 2001, non-party Flikke transferred his interest in Headfirst Baseball to non-party Ted Sullivan, the brother of plaintiff Sullivan. Id. ¶ 7.

2. Headfirst Professional Sports Camps LLC

In July 2010, Red Sox Camps LLC was organized under the laws of the District of Columbia. See id. ¶¶ 18-20. Plaintiff Sullivan and defendant Robert Elwood 2 “were each 50% owners” of this LLC. Id. ¶ 20. “In February 2012, Red Sox Camps LLC changed its name to Headfirst Professional Sports Camps LLC [ (‘Headfirst Professional Sports Camps’) ].” Id. ¶ 21.

3. Headfirst Camps LLC

Headfirst Camps LLC (“Headfirst Camps”) was established in January 2012 under the laws of the District of Columbia. Id. ¶ 26. Plaintiff Sullivan and his brother Ted Sullivan each own a 50% interest in the company. See id. ¶¶ 37-38.

B. The Parties’ Dispute

Plaintiffs Sullivan, Headfirst Baseball, and Headfirst Camps commenced this action, alleging that Headfirst Baseball and Headfirst Camps terminated their relationship with defendant Robert Elwood after the plaintiffs discovered that he had allegedly misappropriated hundreds of thousands of dollars from Headfirst Baseball and Headfirst Camps over several years, using the money for non-business purposes, i.e., personal expenditures, and that defendant Stacey Elwood was complicit in this conduct. See Headfirst Baseball LLC v. Elwood, 999 F.Supp.2d 199, 203-04 (D.D.C.2013); see also Second Am. Compl. ¶¶ 1-2, 15. Defendant Robert Elwood insists that the non-business expenditures were permitted because he and plaintiff Sullivan allegedly formed an “overarching” Headfirst partnership, which authorized, inter alia, the use of Headfirst Baseball and Headfirst Camps funds for such expenditures. P’ship Opp’n at 6, 7.

Defendant Robert Elwood has filed several counterclaims against plaintiff Sullivan, generally seeking a declaration of the existence of the alleged Headfirst partnership, see Elwood Countercl. I ¶¶ 110-17 (count three); see also id ¶¶ 122-28 (alleging, in count five, that he detrimentally relied upon repeated promises from plaintiff Sullivan that they were equal partners in the Headfirst partnership), as well as damages resulting from being ousted from the alleged partnership, see id. ¶¶ 118-21 (requesting, in count four, a full accounting and compelled buyout of the partnership if *241 it exists); id. ¶¶ 129-35 (claiming, in count six, that if a partnership is found to exist, then damages have resulted from plaintiff Sullivan’s breach of his fiduciary duty as a partner). He has also counterclaimed against Headfirst Professional Sports Camps for a compelled buyout of his undisputed 50% interest in the company. 3 Id. ¶¶ 93-109 (counts one and two).

II. STANDARD OF REVIEW

Before granting a motion for summary judgment pursuant to Federal Rule of Civil Procedure 56, a court must find that “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). “A fact is material ‘if it might affect the outcome of the suit under the governing law,’ and a dispute about a material fact is genuine ‘if the evidence is such that a reasonable jury could return a verdict for the non[ jmoving party.’ ” Steele v. Schafer, 535 F.3d 689, 692 (D.C.Cir.2008) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)).

On a motion for summary judgment, “[t]he evidence of the non-movant is to be believed, and all justifiable inferences are to be drawn in his favor.” Anderson, 477 U.S. at 255, 106 S.Ct. 2505 (citation omitted). “Credibility determinations, the weighing of the evidence, and the drawing of legitimate inferences from the facts are jury functions, not those of a judge ... ruling on a motion for summary judgment .... ” Id. The movant has the burden of demonstrating the absence of a genuine issue of material fact and that the non-moving party “fail[ed] to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial.” Celotex Corp. v.

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Cite This Page — Counsel Stack

Bluebook (online)
168 F. Supp. 3d 236, 2016 WL 912166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/headfirst-baseball-llc-v-elwood-dcd-2016.