Sheltered Cove Marina, LLC v. Regal Boats Marine Industries, Inc. d/b/a Regal Boats

District Court, M.D. Florida·Decided August 26, 2026·No. 6:26-cv-01898·Unknown

Opinion

NOT FOR PUBLICATION UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

SHELTERED COVE MARINA, LLC, Plaintiff, Civil Action No. 26-3627 (MAS) (JTQ) . MEMORANDUM OPINION REGAL BOATS MARINE INDUSTRIES, INC. d/b/a REGAL BOATS, Defendant.

SHIPP, District Judge This matter comes before the Court upon two motions: (1) Plaintiff Sheltered Cove Marina, LLC’s (“Plaintiff or “Sheltered Cove”) Motion for an Order to Show Cause for a Preliminary Injunction (the “PI Motion”) against Defendant Regal Boats Marine Industries, Inc. (“Defendant,” “Regal,” or “Regal Boats”) (ECF No. 3); and Defendant’s Motion to Transfer to the United States District Court for the Middle District of Florida (ECF No. 53). Defendant opposed Plaintiff's motion (ECF No. 19), and Plaintiff replied (ECF No. 21). The Court issued an Order to Show

Cause directing Plaintiff to supplement its proofs in connection with the PI Motion (ECF No. 29), which Plaintiff responded to (ECF No. 32). Thereafter, the Court held oral argument on the PI Motion. (See ECF No. 38.) Defendant subsequently filed its motion, which Plaintiff opposed (ECF No. 54), and Defendant replied (ECF No. 55). For the reasons below, Defendant’s motion is granted, and Plaintiffs PI Motion is denied without prejudice as moot.

L BACKGROUND! A. Factual Background This matter arises from a dispute between the parties regarding Defendant’s representation that it intends not to renew an agreement it has with Plaintiff. (See generally Compl., ECF No. 1.) Plaintiff, a New Jersey corporation with its principal place of business in Tuckerton, New Jersey, “has been part of the New Jersey business community for over thirty .. . years” and is “now one of New Jersey’s largest privately owned marinas[.]” (Compl. §ff 11, 15.) Defendant, a Florida corporation with its principal place of business in Orlando, Florida, “manufactures a wide range of premium fiberglass boats” and “specializes in manufacturing luxury performance boats and yachts utilizing advanced manufacturing techniques like vacuum infusion to produce durable, high-performance recreational boats.” Ud. 12, 16.) Since 2008, the parties have had a written arrangement “designating Sheltered Cove as the exclusive authorized dealer for selling Regal Boats’ products in part of New Jersey[.]” Ud. § 28.) In 2025, the parties executed the most recent agreement (the “2025 Agreement”) which was set to expire on June 30, 2026. Ud. 4 30; see generally Ex. | to Compl. (the “2025 Agreement”), ECF No. 1-1.) The 2025 Agreement requires that Sheltered Cove fulfill certain marketing, training, and staffing obligations. (Compl. 934; see generally 2025 Agreement.) For example, the 2025 Agreement requires Sheltered Cove to: (1) maintain a dedicated line of credit (2025 Agreement § 3 | 3); (2) participate in Regal’s “marketing and promotional activities” (id. § 3 | 5), including displaying Regal products at various boat shows (id. at Ex. B.7); (3) agree to “continue to showcase

' For the purpose of considering the motion to transfer, the Court “accept[s] as true all of the allegations in the complaint, unless those allegations are contradicted by the defendants’ affidavits.” Bockman v. First Am. Mktg. Corp., 459 F. App’x 157, 158 n.1 Gd Cir. 2012) (citations omitted).

Regal[ Boats’s products] in their indoor showroom and [m]arina as the seasons permit” (id.), and (4) commit to $3,500,000 in product purchases from Regal (id. at Ex. B1). The 2025 Agreement also contains a venue provision which provides that “[e]xclusive venue for any dispute arising under or out of this [2025] Agreement shall be conducted in Orange County, in the State of Florida or a venue so designated by [Regal Boats].” (2025 Agreement § 10 { 4.) Moreover, the 2025 Agreement has a provision on the “[rJelationship of the [p]arties” which states that “[Sheltered Cove] and its owners and employees are not employees, agents[,] or franchisees of [Regal Boats]” and that “[t]his [2025] Agreement is not intended to create or constitute a franchise agreement or a franchisor-franchisee relationship.” (fd. § 10 4 6 (emphasis in original).) On December 4, 2025, Jack Kuck (“Kuck”), the Vice President of Sales and Marketing for Regal Boats, sent correspondence to Mark Hattman (“Hattman’), President of Sheltered Cove, indicating that Regal Boats did not intend to renew the 2025 Agreement with Sheltered Cove due to an “incurable breach” by Sheltered Cove. (Compl. § 64-66; see generally Ex. 5 to Compl. (the “Dec. Correspondence”), ECF No. 1-5.) Kuck noted that Regal Boats “observed that additional new product lines [were] . . . being advertised and promoted on [Sheltered Cove’s] website and related media channels” even though Regal Boats “did not receive the contractually required thirty .. . days prior written notice before these new lines were introduced.” (Dec. Correspondence 1 (emphasis omitted).) Kuck indicated that the correspondence served as Regal Boats’s “formal Notice of Default” under the 2025 Agreement, and that as a result, Regal Boats decided not to renew the 2025 Agreement with Sheltered Cove. (/d. (emphasis omitted).} After receiving the correspondence, Hattman contacted Kuck “directly to explain that Sheltered Cove was not moving forward with the new product line at issue.” (Compl. { 70.)

Thereafter, Hattman traveled to Regal Boats’s headquarters in January 2026 “in an attempt to resolve the dispute[.]” (/d. 771.) On March 5, 2026, Kuck sent e-mail correspondence to Hattman indicating that Regal Boats intended to move forward with its decision not to renew the 2025 Agreement. (/d. ] 80; see generally Ex. 6 to Compl. (the “March E-mail Correspondence”), ECF No. 1-6.) On March 16, 2026, Sheltered Cove’s counsel sent correspondence to Regal Boats indicating its understanding that Regal Boats’s decision not to renew the 2025 Agreement “constituted an unlawful termination in violation of the New Jersey Franchise Practices Act [(the ‘NJFPA’)] and related contractual obligations.” (Compl. { 82; see generally Ex. 7 to Compl., ECF No. 1-7.) On March 27, 2026, Regal Boats’s counsel reiterated that Regal Boats “would not be rescinding its non-renewal decision.” (Compl. { 86.) B. Procedural Background On April 6, 2026, Sheltered Cove filed its Complaint against Regal Boats, alleging five causes of action: (1) violation of the NJFPA; (2) breach of the 2025 Agreement; (3) declaratory judgment that “Sheltered Cove continues to be Regal Boats’[s] exclusive authorized dealer in the [specified] territory” and “all previous efforts . . . to terminate, cancel, or not renew Sheltered Cove as its exclusive authorized dealer in specified New Jersey counties have no force or effect” and an injunction enjoining Regal Boats from terminating Sheltered Cove as its exclusive authorized dealer in the territory; (4) breach of good faith and fair dealing; and (5) tortious interference. (/d. 102-27.) That same day, Sheltered Cove filed the P] Motion seeking emergent relief preventing Regal Boats from not renewing or terminating the 2025 Agreement it has with Sheltered Cove. (See generally Prelim. Inj. Mot. (the “PI Mot.”), ECF No. 3.) The Court heid a telephone conference on April 23, 2026, to discuss the PI Motion. (See Apr. 23, 2026, Minute Entry, ECF

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Sheltered Cove Marina, LLC v. Regal Boats Marine Industries, Inc. d/b/a Regal Boats, (M.D. Fla. 2026).

Sheltered Cove Marina, LLC v. Regal Boats Marine Industries, Inc. d/b/a Regal Boats (Sheltered Cove Marina, LLC v. Regal Boats Marine Industries, Inc. d/b/a Regal Boats) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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