StayTerra Vacations, LLC v. Shawn T. Kaleta

CourtCourt of Chancery of Delaware
DecidedMay 27, 2026
DocketC.A. No. 2025-1111-KSJM
StatusPublished

This text of StayTerra Vacations, LLC v. Shawn T. Kaleta (StayTerra Vacations, LLC v. Shawn T. Kaleta) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
StayTerra Vacations, LLC v. Shawn T. Kaleta, (Del. Ct. App. 2026).

Opinion

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

STAYTERRA VACATIONS, LLC (f/k/a ) GSP PRIME BUYER, LLC), PRIME ) VACATIONS, LLC, and GSP PRIME ) HOLDINGS, LLC, ) ) Plaintiffs, ) ) v. ) C.A. No. 2025-1111-KSJM ) SHAWN T. KALETA, BALI HAI JV ) LLC, TRI STAR PROPERTIES, LLC, ) TRISTAR PROPERTIES ) ACQUISITION PRIME LLC, ) TRISTAR SEASIDE TROPIC LLC, ) TRISTAR PD LLC, 791 JACARANDA ) LLC, 111 CEDAR AVE LLC, ) COCONUT BEACH RESORT LLC, ) 1015 FLEMMING ST LLC, and 171 ) MCKINLEY LLC, ) ) Defendants. )

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS THE VERIFIED AMENDED COMPLAINT

1. The facts are drawn from the Verified Amended Complaint (the

“Amended Complaint”).1 In September 2024, entities affiliated with private equity

firm Garnett Station Partners—Plaintiffs StayTerra Vacations, LLC (f/k/a GSP

Prime Buyer, LLC) and GSP Prime Holdings, LLC—acquired Plaintiff Prime

Vacations, LLC (with StayTerra and GSP, “Plaintiffs”), a property rental

management brand created by Defendant Shawn Kaleta. The acquisition comprised

an Equity Purchase Agreement (the “Purchase Agreement”), a Property Management

1 C.A. No. 2025-1111-KSJM, Docket (“Dkt.”) 36 (Am. Compl.). Agreement (the “Management Agreement”), a Contribution Agreement, and a Hotel

Agreement.

2. Plaintiffs allege that after the acquisition closed, Kaleta began

indirectly competing with Plaintiffs. Kaleta transferred dozens of properties, in many

cases for $10, to his ex-wife, Jen Kaleta, and his girlfriend, Kiri Stewart. Jen Kaleta

and Stewart then stopped using Plaintiffs’ property management services. Instead,

Stewart, an interior designer, formed Magnolia Cottages, LLC and Jen Kaleta

incorporated AMI Premier Properties, Inc. Magnolia Cottages and AMI Premier then

began offering property management services in Florida to the newly transferred

properties.

3. Plaintiffs also allege that Kaleta assisted Jen Kaleta and Kiri Stewart

with a shadow listing scheme. Jen Kaleta and Stewart used booking platforms to list

properties Kaleta owned. Plaintiffs listed the exact same properties but for higher

rates. Kaleta prevented double booking by blocking the properties for personal use

whenever Stewart or Jen Kaleta booked a guest. This alleged scheme allowed Jen

Kaleta and Stewart to capture revenue that Plaintiffs would have received.

4. Plaintiffs claim that Kaleta breached his obligations under the

transactional agreements. They filed this suit against Kaleta and counterparties to

some of the transactional agreements referred to as the “Hotel Defendants”2 (with

Kaleta, “Defendants”). Plaintiffs assert twelve Counts:

2 The Hotel Defendants are Bali Hai JV LLC, Anna Maria Beach Resort LLC, Tri

Star Properties, LLC, TriStar Properties Acquisition Prime LLC, Tristar Seaside

2 • Count I against Kaleta for breach of the Purchase Agreement’s non- competition covenant;

• Count II against Kaleta for breach of the Purchase Agreement’s non- solicitation covenant;

• Count III against Kaleta for breach of the Purchase Agreement’s non- interference covenant;

• Count IV against Kaleta for breach of the Management Agreement;

• Count V against Kaleta for breach of the Purchase Agreement’s and Management Agreement’s implied covenants of good faith and fair dealing;

• Count VI against Kaleta for breach of the Contribution Agreement;

• Count VII against Kaleta for tortious interference of the Management Agreement;

• Count VIII against Defendants for breach of the Hotel Agreement, alleging failure to pay hotel fees;

• Count IX against Defendants for breach of the Hotel Agreement, alleging removal of access from property management software;

• Count X against Kaleta for anticipatory breach of the Hotel Agreement;

• Count XI against Kaleta for anticipatory breach of the Management Agreement; and

• Count XII against Defendants for account stated for failure to pay hotel fees.

5. Defendants have moved to dismiss the Amended Complaint under Court

of Chancery Rule 12(b)(1) for lack of subject matter jurisdiction, Rule 12(b)(2) for lack

of personal jurisdiction, and Rule 12(b)(6) for failure to state a claim.3

Tropic LLC, Tristar PD LLC, 791 Jacaranda LLC, 111 Cedar Ave LLC, Coconut Beach Resort LLC, 1015 Flemming St LLC, and 171 McKinley LLC. 3 Dkt. 32 (“Defs.’ Opening Br.”) at i–ii; Dkt. 29.

3 6. Rule 12(b)(1). Defendants’ motion to dismiss for lack of subject matter

jurisdiction is denied because Plaintiffs pled a basis for equitable jurisdiction in

Counts I through III and the court may exercise jurisdiction over the remaining

claims under the clean-up doctrine.

a. The court “can acquire subject matter jurisdiction over a cause in

only three ways, namely, if (1) one or more of the plaintiff’s claims for relief is

equitable in character, (2) the plaintiff requests relief that is equitable in

nature, or (3) subject matter jurisdiction is conferred by statute.”4 Plaintiffs

seek injunctive relief—to enforce restrictive covenants to prevent Kaleta from

interfering with Plaintiffs’ business and customers. The loss of customer

relationships and goodwill can qualify as irreparable harm warranting

injunctive relief.5

b. “Fundamentally, once a right to relief in Chancery has been

determined to exist, the powers of the Court are broad and the means flexible

to shape and adjust the precise relief to be granted so as to enforce particular

rights and liabilities legitimately connected with the subject matter of the

action.”6 Under the clean-up doctrine, “the court may also exercise ancillary

4 Candlewood Timber Gp., LLC v. Pan Am. Energy, LLC, 859 A.2d 989, 997 (Del.

2004) (internal citations omitted). 5 L & W Ins., Inc. v. Harrington, 2007 WL 2753006, at *11 (Del. Ch. Mar. 12, 2007)

(“The protection of substantial business relationships and goodwill are legitimate business interests whose impairment may give rise to irreparable harm.”). 6 Wilmont Homes, Inc. v. Weiler, 202 A.2d 576, 580 (Del. 1964) (citing 1 John N.

Pomeroy, A Treatise on Equity Jurisprudence § 115 (5th ed. 1941)).

4 jurisdiction over purely legal causes of action that are ‘part of the same

controversy over which the Court originally had subject matter jurisdiction in

order to avoid piecemeal litigation.’”7 If a plaintiff has adequately pled a basis

for subject matter jurisdiction, then the court applies a multi-factor analysis to

determine whether to assert ancillary jurisdiction.8 Those factors include

judicial efficiency.9

c. Defendants argue that this court lacks subject matter jurisdiction

because money can remedy any alleged harms. But they ignore that the

Amended Complaint seeks injunctive relief to enforce the restrictive covenants

at issue in Counts I through III.10 As discussed below, Counts I through III

state a claim. Plaintiffs have thus pled a basis for equitable jurisdiction.

Judicial efficiency warrants exercising jurisdiction over the remaining Counts

under the clean-up doctrine. This court therefore has subject matter

jurisdiction over all claims in this action.

7 Rodriguez v. Great Am. Ins. Co., 2021 WL 4892216, at *3 (Del. Ch. Oct. 20, 2021)

(quoting Kraft v. WisdomTree Invs.

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StayTerra Vacations, LLC v. Shawn T. Kaleta, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stayterra-vacations-llc-v-shawn-t-kaleta-delch-2026.