By Nicole Bowman-Layton

“Defendants having failed to appear, answer, or raise an objection to the complaint… and the time for Defendants to do so having expired.”

That language appears repeatedly in court orders entered against Michael Alexander Reardon and affiliated companies in late 2025.

In Erie County, a New York judge used those words before awarding Kash Advance, LLC a judgment totaling $112,146.60. JUDGEMENT KASH_ADVANCE_LLC_VS_M…

In Queens County, a similar finding preceded a $23,774.07 judgment in favor of KMT Funding LLC. JUDGEMENT KMT_FUNDING_LLC_v_DAE

And in Washington County, Kings County, and Monroe County, courts entered additional default judgments after determining that defendants had been served but did not respond.

Since October, five New York courts and one Florida court have entered rulings against Reardon and/or related business entities, according to court records reviewed by the Albemarle Observer. The five New York judgments total approximately $583,028.71.

See our previous stories here and here and here.

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Financing disputes across five New York counties

The New York cases were brought by financing companies that alleged breach of funding or receivables purchase agreements involving a network of overlapping business entities tied to Reardon’s boatbuilding venture.

Those entities include:

• Daedalus Composites LLC
• Catalina Yachts LLC
• Daedalus Yachts LLC
• Daedalus Land-Yachts LLC
• Hermes Marine LLC
• Solectra Yachts LLC
• Daedalus Property Holdings LLC

In the Kash Advance case, the court wrote that the summons and complaint had been served and that defendants failed to appear or answer before entering judgment. JUDGEMENT KASH_ADVANCE_LLC_VS_M…

In the KMT Funding case, the court similarly stated:

“The Summons and Verified Complaint… having been served upon Defendants… and Defendants having failed to appear, answer, or raise an objection… and the time for Defendants to do so having expired.” JUDGEMENT KMT_FUNDING_LLC_v_DAE…

The court then awarded $23,774.07. JUDGEMENT KMT_FUNDING_LLC_v_DAE…

In Washington County, the court entered a $70,941.56 judgment in favor of Pure Financial Funding. JUDGEMENT PURE_FINANCIAL_FUNDIN…

In Monroe County, Litefund Solutions obtained a $200,785.18 judgment. JUDGEMENT LITEFUND_SOLUTIONS_LL…

And in Kings County, Clearfund Solutions was awarded $175,381.30. JUDGEMENT CLEARFUND_SOLUTIONS_L…

Several of the judgments impose joint and several liability, meaning plaintiffs may pursue the full amount from any one of the named defendants.

All five cases were adjudicated within a narrow window between October and December 2025 — a period that coincided with the abrupt shutdown of operations previously documented by the Observer.

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Florida lease dispute tied to Catalina acquisition

The sixth ruling comes from Pinellas County, Florida, where Catalina Yachts, Inc. sued Reardon in connection with a lease agreement tied to the April 23, 2025 asset purchase of its manufacturing business.

In granting Catalina’s motion for judicial default, the Florida court found that Reardon’s out-of-state counsel had signed an acceptance of service stating that the defendant “shall obtain Florida counsel and serve its response… no later than 30 days from the Service Date to wit: October 30, 2025.” JUDGEMENT CATALINA_YACHTS_INC_V…

The court further noted that although a motion to dismiss had been sent to opposing counsel, “a response to the Complaint was not filed by the deadline agreed to by the parties,” and default was entered. JUDGEMENT CATALINA_YACHTS_INC_V…

Unlike the New York cases, Reardon has filed sworn documents seeking to vacate the Florida default.

In his February 2026 affidavit, he states that he entered into the asset purchase agreement with Catalina Yachts, Inc. on April 23, 2025 and formed Catalina Yachts, LLC to operate the business. AFFIDAVIT OF MICHAEL REARDON 02…

He contends that after closing, issues surfaced that he says were not disclosed beforehand. In the affidavit, he states that Catalina represented there was no pending or threatened litigation beyond disclosed liabilities. AFFIDAVIT OF MICHAEL REARDON 02…

He further asserts:

“floorplan lenders threatened repossession, which would have shut down our business operations…” AFFIDAVIT OF MICHAEL REARDON 02…

Reardon states he paid certain floorplan obligations out of pocket and believed negotiations were ongoing while he sought Florida counsel. AFFIDAVIT OF MICHAEL REARDON 02…

The court nonetheless entered judicial default after determining the response deadline had passed. JUDGEMENT CATALINA_YACHTS_INC_V…

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Wage claim adds to mounting legal pressure

Separately, journalist Peter Swanson, writing for Loose Cannon, reported that a Pinellas County Office of Human Rights magistrate ruled in favor of two former employees in a wage dispute involving Catalina Holdings LLC. Swanson reported that unpaid wages were doubled under county ordinance and that additional penalties could apply if payment was not made within 30 days.

That reporting can be read here:
https://loosecannon.substack.com/p/wage-theft-decision-against-catalinas

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From expansion strategy to court dockets

Just months earlier, Reardon had been promoting an acquisition-driven consolidation effort intended to build what he described as a nationwide recreational boatbuilding network.

Earlier Albemarle Observer reporting documented that rapid expansion — and the equally rapid unraveling that followed, including halted production, financial strain, and the collapse of a proposed Edenton partnership.

The court filings now provide a detailed account of the financial aftermath.

In five New York counties, courts entered default judgments after defendants did not respond.

In Florida, a judicial default has been entered, though Reardon is attempting to set it aside.

Together, the rulings mark a significant legal chapter in the collapse of the venture — one now defined not by acquisition announcements, but by enforcement orders and sworn affidavits.