Photographer Allowed to Pursue Claims Over Ownership Dispute in NFT Venture
On Friday, July 19, 2024, the United States District Court for the Middle District of Florida, Tampa Division issued an order in a lawsuit between Florida photographer Chadwick Tyler and entrepreneur Neil Hutchinson over a digital media venture involving non-fungible tokens (NFTs).
Tyler sued Hutchinson, another co-founder named Hector Cartagena Gonzalez, and Fellowship Photos Inc. alleging fraud, breach of contract, and other claims related to Tyler’s involvement in Fellowship Trust, a social media platform he created in 2021 to promote photographer artists. According to court documents, Tyler’s concept centered around mentoring emerging artists, curating their work, and selling photography-related NFTs on the blockchain.
In late 2021, Tyler agreed to bring Hutchinson and Cartagena on as co-founders of the venture called Fellowship, with Hutchinson investing significantly in cryptocurrency to fund operations in exchange for majority ownership. Documents state the parties agreed Hutchinson would own 80% and Tyler and Cartagena would each own 10%. However, Tyler alleges problems arose after the incorporation of Fellowship Photos in 2022, claiming he was denied access to finances and ownership stake in the growingly successful company.
In his order, District Judge Steven Merryday denied motions from Hutchinson and Fellowship Photos to dismiss the suit for lack of jurisdiction, finding Tyler established the court had jurisdiction over both defendants under Florida’s long-arm statute. The judge determined Hutchinson derived financial benefit from Tyler’s management of Fellowship from Florida and could have foreseen being haled into court there.
While Judge Merryday dismissed some of Tyler’s fraud-based claims, he allowed claims for fraud in the inducement and promissory estoppel to proceed, finding they were adequately pleaded. The statute of frauds did not bar breach of oral contract allegations at this stage, since the parties’ intent on contract duration is factual.
The court also denied Hutchinson’s request to transfer the venue to California, noting convenience did not clearly outweigh Tyler’s choice to litigate in Florida, where much interaction occurred. Going forward, Tyler will have a chance to amend his complaint to address defects the court identified in dismissed claims.
The order leaves core claims unresolved in the dispute over ownership and control of the NFT-related media venture that began as a Florida-based collaboration between the photographer plaintiff and defendants.
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