Properties of The Villages is seeking an injunction against rogue sales agents it claims are doing “irreparable harm” to the powerful sales arm of Florida’s Friendliest Hometown.
Properties of The Villages on Friday fired its latest legal salvo in the David vs. Goliath battle being waged in U.S. District Court in Ocala.
In addition, Properties of The Villages has cast a wider net for the defecting sales representatives who have joined original rogue agents Christopher Day and Jason Kranz, founders of KD Premier Realty LLC.
Among those newly named in the lawsuit is Kelly Shipes, who announced on Jan. 10 her departure from Properties of The Villages. Shipes, a former college volleyball star, was subsequently informed her services as a coach were no longer needed at The Villages Charter School.
Also named in the lawsuit are Day’s former assistants, Toni McChesney and Kathleen Roth.
Properties of The Villages, according to court documents, claims that Day and Kranz have violated their independent contractor agreements and as a result Properties of The Villages “has suffered, and will continue to suffer, irreparable harm by reason of the competitive nature of the business.”
A key provision in the Properties of The Villages contract with its salespeople is the 24-month non-compete clause.
Properties of The Villages claims that the upstarts have tried to lure away former sales colleagues as well as potential homebuyers. The Villages also alleges that Kranz and Day walked out the door with proprietary information, “including but not limited to Properties of The Villages’ customer records, business plans, forecasts, customer lists, financial information, product specifications, purchasing records, prospect lists, and other unique customer information to be used for legitimate business purposes only.”
The lawsuit claims the rogue salespeople have “acted willfully, maliciously, and in bad faith.” It is seeking “compensatory and punitive damages in an amount to be determined at trial, together with interest.”
Kranz and Day have launched a counter assault, claiming Properties of The Villages “misclassified” the sales representatives as independent contractors when there were, in fact, employees.
It is not known how the Coronavirus has impacted home sales in The Villages. The trolleys are not running, the sales centers are closed to foot traffic and the door has been slammed on open houses. Properties of The Villages is keeping a stiff upper lip, running full-page ads in The Villages Daily Sun filled with frothy language and floor plans. Gone are the smiling salespeople and open houses.
