Braun Strowman and EC3 File Lawsuit Against Former Business Partner

Update: Monday, August 10

Eric Holzer has reached out to HeelByNature.com to let everyone know he has started a GoFundMe to help with legal costs.

He also issued the following statement.

In 2018, I was involved in starting an apparel print shop, Magic City Prints, with my former friend, Jedediah Koszewski (JC), and his friend and professional wrestler, “EC3” (Michael Hutter). In the beginning, all was well as we worked together to start the business.  Soon after Magic City Prints was up and running, EC3 introduced us to fellow WWE Wrestler, “Braun Strowman” (Adam Sherr).  Magic City Prints entered into a contract with Braun Strowman to print his Meat Castle clothing line.  Thereafter, the four of us began K5 Entertainment Inc., a company which we all owned, and its YouTube Channel (“K5 Network”).  At this point, Strowman also requested and purchased a minority share of Magic City Prints.

A book could be written about the drama that unfolded, but suffice it to say, there were a number of events that arose developing tension and disagreements among the partners.  To make a long story short, in early March, I was asked by JC, EC3, and Strowman to leave both businesses with no compensation although I had contributed over a year’s worth of work to both companies, invested my own money and resources into them, and have a percentage ownership of both businesses.  I understand not all business relationships work out, but my family and I weathered hard times while putting aside other guaranteed income to build something “better” for us by making Magic City Prints and K5 Entertainment successful.  All things considered, I don’t believe it was fair to be asked to leave with no compensation.  I tried to amicably work everything out, but those efforts failed.  I was then served a lawsuit that was filed by both Strowman, EC3, and Strowman’s company, Meat Castle.  They also changed the locks on our business facility without notifying me and have denied me entrance onto the premises even though I am listed on the lease (giving me a right of possession) and continue to be responsible for my portion of the rent.  Furthermore, based on their Instagram and other social media posts, I believe that they have continued using the rented space and assets of the former businesses to continue to print t-shirts for new business endeavors (of which I am not a part) and film “wrestling promos” with no compensation to my initial investments. It is my opinion that, under the circumstances, they have not acted in good faith and have breached fiduciary duties that they owe to me as a business partner, and these breaches will be the subject of counterclaims that I will be filing against them.

Original Report:

Braun Strowman and EC3 have filed a lawsuit against former business partner Eric Holzer and his company Magic City Prints. The lawsuit alleges loans were made to the business in forms of equipment and cash.

The lawsuit involves three businesses, Magic City Prints, K5 Entertainment Inc., and Meat Castle Clothing.

• Magic City Prints: Started by Eric Holzer, Jedediah Koszewski, and Michael Hunter(EC3). Adam Scherr (Braun Strowman) later invested $15,000 into the business.
• K5 Entertainment: Joint venture between Eric Holzer, Jedediah Koszewski, and Michael Hunter, and Adam Scherr.
• Meat Castle Clothing: Started by Adam Scherr, but used Magic City Prints facility to manufacture clothing.

The lawsuit states a $7000 initial loan was made to the business by Michael Hunter to purchase a Direct To Garment printer. It also states when Adam Scherr joined the venture, he made a $15,000 investment with promise of stock in the company.

In court documents obtained by HeelByNature.com, Scherr and Hunter provide a detailed rundown on the business relationship, as well as allegations of wrongdoing on Holzer’s behalf. The lawsuit was filed this past May, but has yet to be resolved.

The lawsuit filing also outlines what type of judgement Scherr and Hunter hope to be awarded. The pair want all footage that has his likeness to be returned, and to be awarded any monetary damages. They claim the damages exceed the sum of $30,000.00, not including any prejudgment interest, attorney’s fees and costs.

The following are excerpts from the lawsuit, including Holzer’s motion to dismiss.

Formation Of Magic City Prints and Loans

In 2018, Plaintiff, HUTTER, was approached by his long-time friend, Jedediah “JC” Koszewski, to purchase an Epson $210 “Direct to Garment” printer for use by JC in a fledgling apparel printing business that JC had started with Defendant, HOLZER

Based on his friendship with JC, Plaintiff, HUTTER, agreed in September, 2018, to purchase the printer from an online seller for the price of $4,000 as a loan to JC and HOLZER so that they could commence their partnership business under the trade name of “Magic City Prints”.

In 2019, JC again approached HUTTER, this time along with Defendant, HOLZER, asking HUTTER to loan them an additional $7,000.00 to purchase more printing equipment to expand the “Magic City Prints” operations.

HOLZER pitched the idea of expanding the “Magic City Prints” business and the concept of HUTTER, JC, and HOLZER forming a corporation together to expand the business.

Ultimately, HUTTER agreed and purchased the additional $7,000.00 worth of printing equipment and accessories in May, 2019, based upon HOLZER’s stated concept of the three men sharing in the profits of the “Magic City Prints” business. Unfortunately, no formal contract was drawn or executed by and between the three men that memorializes the terms of their agreement relating to the “Magic City Prints” business.

After HUTTER purchased the additional $7,000.00 worth of equipment, JC and HOLZER began to expand the “Magic City Prints” business.

In keeping with the expansion, HUTTER, JC, and HOLZER, jointly and severally, entered into a Lease Agreement for warehouse space in Winter Garden, Florida to house MAGIC CITY’s operations.

On May 10, 2019, HOLZER, of his own volition, filed the Articles of Incorporation for MAGIC CITY with the Florida Division of Corporations to register and incorporate MAGIC CITY in the state of Florida.

HOLZER chose, on his own and without a vote or affirmation from HUTTER, to list himself in the Articles as the sole officer of the corporation.

Adam Scherr (Braun Strowman) Introduced To Venture, and Financial Investments

After MAGIC CITY expanded its operations, HUTTER introduced his friend, SCHERR to the group. SCHERER had gained notoriety as a professional wrestler, as had HUTTER. SCHERR’s public persona under the name, Braun Strowman, had grown in reputation and stature in the professional wrestling industry. Likewise, HUTTER’s professional wrestling name and reputation had grown under his wrestling name of “EC3”’. ‘

SCHERR, attendant with the fame of his Braun Strowman wrestling persona, had developed the moniker of “Meat Castle” as one of his well-known nicknames resulting in his development of a line of apparel and merchandise under the “Meat Castle” name. For that purpose, SCHERR formed his own company, MEAT CASTLE LLC, one of the named Plaintiffs herein.

In order to market his “Meat Castle” line of merchandise, SCHERR created a website at www.meatcastleclothing.com (the “Meat Castle website’) in order to offer for sale the products containing his established “Meat Castle” moniker.

SCHERR was introduced to the “Magic City Prints” group with the promise that MAGIC CITY could produce the printed “Meat Castle” apparel and. merchandise and fulfill orders placed through the Meat Castle website.

SCHERR agreed and, as a result, on October 20, 2019, his company, Plaintiff MEAT CASTLE, entered into a Joint Venture Agreement (the “JVA”) with MAGIC CITY to memorialize the terms for the venture.

SCHERR, HUTTER, JC, and HOLZER agreed that as sales of “Meat Castle” merchandise were generated from SCHERR’s Meat Castle website, MAGIC CITY would process the orders and produce the merchandise to fulfill and ship the orders.

Pursuant to Article VII of the JVA, payments from the online purchasers of the Meat Castle merchandise were to be received into a bank account “set up especially for the Joint Venture, and requiring the joint signatures of the parties for any withdrawals”.

Pursuant to Article V of the JVA, the net profits from the sales were to be distributed to the Joint Ventures in accordance with their respective Venture Interests, to wit:

a) MEAT CASTLE – 60%
b) MAGIC CITY — 40%

Subsequently, HOLZER floated to SCHERR the idea of SCHERR investing in MAGIC CITY, ostensibly to allow the company to pay outstanding bills and to purchase additional equipment to expand its production capabilities.

HOLZER drew up a Memorandum to reflect the investment terms he offered to SCHERR, which would require SCHERR to pay the sum of $15,000.00 to MAGIC CITY in exchange for a promise of SCHERR acquiring an ownership interest in MAGIC CITY. A true copy of HOLZER’s Memorandum is attached hereto as Exhibit “C”.

SCHERR, busy with his wrestling career and trusting of HOLZER because of SCHERR’s relationship with JC, issued a check in the amount of $15,000.00 on. November 19, 2019, without the parties formally preparing or executing a written agreement memorializing the terms that HOLZER had promised. Ultimately, SCHERR received nothing in return for his $15,000.00 payment that HOLZER misrepresented to SCHERR as an “investment in MAGIC CITY”. Instead, HOLZER is believed to have converted all or a portion of those funds to his own use and benefit.

In addition, a review of the Joint Venture bank account, described in $8.1 of the JVA, located at JP Morgan Chase Bank, reveals thousands of dollars of withdrawals by HOLZER without SCHERR’s prior knowledge or authorization, which prior authorization is required by the express
terms of the JVA.

K5 ENTERTAINMENT

Contemporaneous in time with the JVA relationship being formed, SCHERR, HUTTER, JC, and HOLZER collectively decided to start a YouTube Channel with the initial intention to provide wrestling fans with more personal access to SCHERR and HUTTER, based upon their respective notoriety within the professional wrestling industry.

In order to formalize this venture, on October 17, 2019, SCHERR, HUTTER, JC, and HOLZER formed a Florida corporation known as K5 ENTERTAINMENT INC. (“K5” herein).

SCHERR and HUTTER invested thousands of dollars of their personal funds for start-up capital for K5 to purchase, among other things, video and audio equipment, set design and construction materials and the like.

JC established the YouTube account and held the Administrator access rights to the account, with the knowledge and assent of the others, including HOLZER.

Subsequently, a number of shows and productions were created, many of which starred SCHERR and HUTTER whose performances highlighting their public wrestling personas. At all times, KS would not have been created nor existed if not for the involvement of SCHERR and HUTTER, whose presence in the productions was the main attraction for the YouTube viewers to watch the videos.

Recently, HOLZER, apparently upset with SCHERR, JC, and HUTTER over matters involving the various business ventures described herein, seized possession of the “digital press” footage and content contained on the backup computer hard drives that includes digital images and video of SCHERR and HUTTER, without the knowledge or consent of SCHERR or HUTTER.

In addition, HOLZER took possession of various computer and production hardware and equipment that had been purchased using the funds provided by SCHERR and/or HUTTER for the express purpose of utilization in the production ventures undertaken by K5.

HOLZER has refused to return to K5 and/or SCHERR, JC, and HUTTER the above described items, despite repeated demands to do so. HOLZER has no legal right to possess or utilize for his own benefit the described items.

BREACH OF CONTRACT: MEAT CASTLE VS. MAGIC CITY

This is an action for damages brought by Plaintiff, SCHERR, against Defendant, MAGIC CITY, based upon breach of contract.

Plaintiff adopts and realleges the allegations contained in paragraphs 2 through 29, inclusive above.

As stated in paragraph 25 above, MEAT CASTLE is entitled to receive 60% of the net profits of sales of “Meat Castle” merchandise sold through the Meat Castle website.

MAGIC CITY has failed and refused to remit to MEAT CASTLE those portions of the net profits to which MEAT CASTLE is entitled under the JVA.

MAGIC CITY, by and. through HOLZER, have deliberately concealed from MEAT CASTLE the records that reveal the exact dollar amount due MEAT CASTLE such that the exact calculation cannot be pled here. However, MEAT CASTLE estimates that its damages for this debt are in excess of $30,0000.00.

MAGIC CITY has breached the terms of the JVA by. failing to remit to MEAT CASTLE those portions of the net profits to which MEAT CASTLE is entitled under the JVA.

MEAT CASTLE has complied with all conditions precedent prior to the filing of this action or same have been waived by the Defendants.

WHEREFORE, MEAT CASTLE demands judgment against Defendant, MAGIC CITY, for damages, prejudgment interest, and the costs of this action.

FRAUD: SCHERR VS. HOLZER

This is an action for damages brought by Plaintiff, SCHERR, against Defendant, MAGIC CITY, based upon fraud.

Plaintiff adopts and realleges the allegations contained in paragraphs 2 through 29, inclusive above.

HOLZER intentionally misrepresented to SCHERR that in exchange for his $15,000.00 “investment” in HOLZER’s “Magic City Prints” venture with JC, that SCHERR would obtain shares of stock in the MAGIC CITY corporation that HOLZER incorporated.

At the time HOLZER made such misrepresentations to SCHERR, no shares of stock had been issued. such that there were no MAGIC CITY shares of stock that could be issued to SCHERR nor could HOLZER sell any shares of stock to SCHERR.

HOLZER made such misrepresentations to induce SCHERR to make a $15,000 payment that HOLZER ultimately converted to his own personal use and benefit.

But for HOLZER’s misrepresentations, SCHERR would not have issued his $15,000 check nor would SCHERR have lost the use of the funds without receiving a benefit. As a result, SCHERR relied upon HOLZER’s misrepresentations to his detriment.

As a direct result of the foregoing, SCHERR has suffered damages of $15,000.00 for which HOLZER is liable.

SCHERR has complied with all conditions precedent prior to the filing of this action or same have been waived by the Defendants.

WHEREFORE, SCHERR demands judgment against Defendant, HOLZER, for damages, prejudgment interest, and the costs of this action.

MONEY LENT: HUTTER vs. HOLZER and MAGIC CITY

This is an action for damages brought by Plaintiff, HUTTER, against Defendants, HOLZER and MAGIC CITY, for money lent.

At the requests of HOLZER, Plaintiff, SCHERR, has lent monies to or for the benefit of HOLZER and MAGIC CITY, totaling at least $28,515.00, to wit:

• a. $4,000.00 for purchase of the Epson S210 “Direct to Garment” printer;
• b. $7,000.00 for purchase of printing equipment and accessories;
• c. additional $17,515.00 at various times since 2018, all for the benefit of HOLZER
  and/or MAGIC CITY

The monies were intended as loans to HUTTER and/or MAGIC CITY.

HUTTER and/or MAGIC CITY have not repaid those loans and are liable to HUTTER for repayment, jointly and severally.

HUTTER has complied with all conditions precedent prior to the filing of this action or same have been waived by the Defendants.

WHEREFORE, HUTTER demands judgment against Defendants, HOLZER and MAGIC CITY, jointly and severally, for damages, prejudgment interest, and the costs of this action.

MEAT CASTLE vs. HOLZER and MAGIC CITY

This is an action for damages brought by Plaintiff, MEAT CASTLE, against Defendants, HOLZER and MAGIC CITY, §772.104, Florida Statutes, for computer-related crimes.

Plaintiff adopts and realleges the allegations contained in paragraphs 2 through 29, inclusive above.

As SCHERR has made demands upon HOLZER and MAGIC CITY to remit the net profits due SCHERR, as alleged in Count J above, HOLZER and/or MAGIC CITY willfully, knowingly, and without authorization, rendered unavailable to MEAT CASTLE data, programs, or supporting documentation residing or existing internal or external to the computer system, computer network, or electronic devices related to the Meat Castle website that are owned exclusively by
Plaintiff, MEAT CASTLE.

Said actions constitute a violation by HOLZER and/or MAGIC CITY of Chapter 815, Florida Statutes, as described in particular in §815.04, Florida Statutes.

Pursuant to §772.104, Florida Statutes, MEAT CASTLE, as the party injured by reason of the violation of the provisions of Chapter 815, Florida Statutes, is entitled to an award against HOLZER and MAGIC CITY, jointly and severally, for threefold the actual damages sustained and reasonable attorney’s fees and court costs.

MEAT CASTLE has complied with all conditions precedent, either contractual or statutory prior to filing this action or same have been waived by the Defendants.

MEAT CASTLE has retained the services of the undersigned law firm to represent it in this action and is obligated to pay said law firm a reasonable attorney’s fee. The Defendants are obligated to pay MEAT CASTLE’s attorney’s fees incurred in bringing this action pursuant to §772.104, Florida Statutes. In the event a default is entered against the Defendants, MEAT CASTLE will seek an award of reasonable attorney’s fees in an amount not exceeding $10,000.00.

WHEREFORE, MEAT CASTLE demands judgment against Defendants, HOLZER and MAGIC CITY, jointly and severally, for statutory damages, reasonable attorney’s fees and costs.

F.S.: SCHERR vs. HOLZER

This is an action for injunctive relief, pursuant to §540.008, Florida Statutes, brought by Plaintiff, SCHERR, to enjoin Defendant, HOLZER, from unauthorized publication of SCHERR’s name or likeness. Plaintiff adopts and realleges the allegations contained in paragraphs 2 through 29, inclusive above.

As set forth above, HOLZER has seized possession of the “digital press” footage and content contained on the backup computer hard drives of Plaintiff, K5, that includes digital images and video of SCHERR, without the consent of SCHERR and HOLZER has threatened to publish, print, display or otherwise publicly use for purposes of trade or for commercial or advertising purpose the name, portrait, photograph, or other likeness of Plaintiff, SCHERR, without SCHERR’s consent and/or against SCHERR’s demands for HOLZER to return such footage and content.

Pursuant to §540.08(2), Florida Statutes, SCHERR is entitled to bring this action against HOLZER to enjoin such unauthorized publication, printing, display or other public use, and to recover damages for any loss or injury sustained by. reason thereof, including an amount which would have been a reasonable royalty, and punitive or exemplary damages.

HOLZER’S MOTION TO DISMISS

At its core, the instant case involves a dispute between three (3) of the four (4) owners of two different companies, Magic City and K5. Although the Complaint is chock full of false allegations, such facts, even assuming that they are true, fail to support the claims alleged against Defendants. The most egregious claim which Plaintiffs’ attempt to gin up against Defendants is a RICO claim based on conclusory allegations with zero ultimate facts to support such a claim. It is crystal clear what is going on with this lawsuit; Scherr and Hutter, two professional wrestlers for World Wrestling Entertainment (the “WWE”), are orchestrating a coup to steal Holzer’s interest in Magic City and K5 from him without compensation. In any event, for the reasons set forth below, Plaintiffs’ Complaint fails to state a claim against Defendants and should, accordingly, be dismissed, including the breach of contract claim being dismissed with prejudice.

You can view the full motion to dismiss document below.