In a significant ruling, the Court of Appeals of Georgia affirmed a trial court's decision against Unleashed 2, LLC and its sole member, Jillian McGee, in a breach of contract case involving Village Pet Care, LLC. The court upheld the award of lost profits and attorney fees to Village Pet Care, which had accused Unleashed 2 and McGee of violating contract terms related to confidentiality and competition.

This decision, filed on June 11, 2026, impacts not only the parties involved but also sets a precedent for how courts may handle similar disputes in the future. The case underscores the importance of adhering to contractual obligations and the potential consequences of breaches.

Background

The dispute began in May 2023 when Unleashed 2, LLC, and Jillian McGee entered into a contract to sell their pet services business assets to Village Pet Care, LLC. The contract included clauses that restricted McGee and her affiliates from competing with Village Pet Care and required them to maintain confidentiality. It also mandated that Unleashed 2 and McGee indemnify Village Pet Care for any breaches of the agreement.

In October 2024, Village Pet Care filed a lawsuit against Unleashed 2 and McGee, alleging that McGee had breached the contract. Specifically, the lawsuit claimed that McGee's adult daughter, a former employee of Unleashed 2, began working for a competitor and informed Unleashed 2's customers about her new position while disparaging Village Pet Care. Village Pet Care sought damages totaling at least $196,100, which included lost profits and attorney fees.

Unleashed 2 and McGee were served with the complaint on November 2, 2024, but failed to respond, leading Village Pet Care to file for a default judgment in January 2025. The trial court granted the default judgment in February 2025, determining that Village Pet Care was entitled to damages, which would be assessed at a later hearing.

The Ruling

The Court of Appeals of Georgia ruled that the trial court did not abuse its discretion in denying Unleashed 2 and McGee's motion to open the default judgment. The court noted that the trial court had only granted a default judgment on liability, not a final judgment, which meant that the defendants could request to open the default under Georgia law.

The court stated, "the trial court did not explain her reasons for denying the motion to open default, but as Village Pet Care pointed out... the record shows that Unleashed 2 and McGee waited several months after learning of the default before they moved to open it."

The court emphasized that the defendants did not act promptly after learning of the default, which was a critical factor in the trial court's decision. The court found that the trial court's ruling was based on the defendants' delay in seeking to open the default and that this did not constitute an abuse of discretion.

Additionally, the court upheld the trial court's award of $194,424 in lost profits and $60,887.05 in attorney fees to Village Pet Care. The court found sufficient evidence presented at the hearing to support these amounts, including testimony from Village Pet Care's former and current CFOs regarding the financial impact of the breach.

Impact

This ruling has significant implications for businesses regarding the enforcement of contractual agreements. It reinforces the idea that parties must adhere to the terms of their contracts and that breaches can result in substantial financial consequences. The court's decision also highlights the importance of timely responses to legal actions, as delays can negatively impact a party's ability to contest judgments.

The outcome of this case may influence future contract disputes, particularly in the pet services industry and similar sectors where confidentiality and competition are critical. Businesses must be aware of the potential repercussions of breaching contractual obligations and the importance of maintaining professional relationships.

What's Next

The court's decision can potentially be appealed to the Georgia Supreme Court, but details on whether Unleashed 2 and McGee plan to pursue this option were not available in the court filing. There are no related cases pending at this time.