Former magazine owner sues Yenor Publishing for breach of business sale agreement

Martin Luther King Jr. Federal Court
Martin Luther King Jr. Federal Court
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A dispute over the sale and management transition of a well-known jazz publication has led to a lawsuit seeking more than $100,000 in damages. The complaint centers on allegations that the buyer failed to pay agreed sums after acquiring the magazine, as well as failing to honor consulting and debt agreements with the seller.

The lawsuit was filed by Gwen Kelley in the United States District Court for the District of New Jersey on March 13, 2026. The defendant named in the case is Yenor Inc., doing business as Yenor Publishing.

According to court documents, Gwen Kelley owned and operated Hot House Jazz magazine from 2002 until 2023. In late 2023, negotiations began between Kelley and Yenor Publishing, represented by its principal Crystal Roney, for the purchase of all assets associated with Hot House Jazz magazine. On November 15, 2023, Yenor executed a Business Sale Offer and Acceptance Agreement (BSA), which was countersigned by Kelley on November 21, 2023. An amendment to this agreement was signed on January 21, 2024, including a Note and Guarantee agreement executed by Roney both individually and on behalf of Yenor.

Under these agreements, Yenor acquired all rights and title to Hot House Jazz magazine’s business assets for an initial purchase price of $180,000. The terms required an immediate payment of $90,000 at closing and two subsequent installments of $45,000 each due on April 15 and August 15, 2024. An additional interest payment of $4,500 was also due by August 15, 2025. Kelley was granted first priority in the business assets until full payment was received.

The agreements further stipulated that any late payments would incur a fee of $2,250 per missed installment. If payments remained unpaid beyond a thirty-day grace period, Kelley could declare default and demand immediate payment of all outstanding contractual sums. Additionally, Kelley would be entitled to recover all costs related to collection efforts including reasonable attorney’s fees.

In addition to selling her business interests in Hot House Jazz magazine to Yenor Publishing, Kelley entered into an Independent Contractor Agreement (ICA) with Yenor on January 26, 2026 (effective February 1, 2024). This agreement guaranteed her a consulting fee of $1,500 per monthly issue she contributed services toward.

Kelley alleges that problems began in April 2024 when it became apparent that neither Yenor nor Roney intended to fulfill their financial obligations under either the BSA or ICA. She claims that no payment was made for the April or August installments ($45,000 each plus late fees), nor were consulting fees paid for several months in which she provided services ($9,000 total). Notices of default were issued by Kelley’s counsel in June and October of 2024 but did not result in payment.

Despite ongoing communications where it was suggested that funding would be secured to meet obligations under both agreements—including through what is described as a Debt Carrying Agreement reached in November 2024—Kelley states that only one carrying fee payment was ever made out of fifteen months owed ($1,000 per month). She further alleges that representations made by Roney regarding intent or ability to pay were not made in good faith.

By early 2026 Kelley’s legal team sent multiple notices demanding performance under all agreements but received no substantive response from Yenor. Roney responded only once individually via email directing Kelley toward her bankruptcy proceedings filed December 9, 2025; however according to the complaint Roney did not list Kelley as a creditor in those filings.

The complaint outlines several causes of action: breach of contract regarding both the BSA and ICA; breach relating to failure under the Debt Carrying Agreement; breach of implied covenant of good faith and fair dealing; promissory estoppel; unjust enrichment; quantum meruit; and alternative claims based on similar facts if primary contract claims are unsuccessful.

Kelley seeks judgment awarding at least $118,500 plus interest across all counts—broken down as follows: at least $94,500 for breach under the BSA (missed payments plus late fees), at least $9,000 for missed consulting fees under ICA terms (and alternative theories), at least $15,000 for unpaid carrying fees—and requests reasonable attorney’s fees along with any other relief deemed appropriate by the court.

Attorneys representing Gwen Kelley are Joseph L. Linares and Nicholas M. Ebel from Walsh Pizzi O’Reilly Falanga LLP based in Newark. The case is identified as Civ. A. No. 2:26-cv-2593.

Source: 226cv02593_Kelley_v_Yenor_Inc_Complaint_District_New_Jersey.pdf



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