California Card Dealer Sues Michigan Shop Over $253,000 in Unpaid Merchandise
A California-based sports card wholesaler is suing a Michigan card shop and its owner for $253,000 in unpaid merchandise, according to a federal lawsuit filed in October 2025.
Sords Card Emporium LLC (San Francisco) claims it shipped $435,000 worth of sports and Pokémon cards to House of Hits Sports Cards, LLC and owner Mike Karjo under a profit-sharing business buyout agreement — and got paid for only half of it.
The Deal
In April 2025, Sords Card Emporium agreed to sell its wholesale business to Karjo and a partner named Yazan Duqmaq for $375,000. The deal worked like this:
• Sords would ship merchandise (football cards to Yazan, Pokémon and other cards to Karjo)
• Karjo and Yazan would resell the cards on marketplaces like Dealernetx
• They’d reimburse Sords for the cost of merchandise and shipping within one week
• Sords would get 50% of the resale profits
• Once the profit-share hit $275,000, Karjo would pay a $100,000 lump sum to complete the $375,000 buyout
If Karjo defaulted on the profit-sharing arrangement, Sords would get 100% of the profits instead of 50%.
According to the complaint, the parties agreed to the deal verbally and planned to formalize it with lawyers later — but started operations immediately.
What Went Wrong
Sords shipped eight deliveries of merchandise between April and July 2025, totaling $435,228.75 in value. The complaint states all merchandise was delivered on time and met quality standards.
Karjo paid $256,897.13 — roughly half of what was owed — then stopped paying, according to the lawsuit. The complaint alleges Karjo “continually delayed payment” and made “a myriad of excuses,” including supposed issues with his accounting company.
Sords stopped shipping merchandise due to the non-payment. Karjo later offered to buy the business outright (without his partner Yazan), but negotiations failed when he refused to pay the outstanding invoices first.
The Numbers
According to the complaint filed in Oakland County Circuit Court, Sords Card Emporium is owed:
• $216,620 — unpaid merchandise costs
• $36,641 — additional 50% profit share triggered by Karjo’s alleged default on the original profit-sharing deal
• Total: $253,261.88
The lawsuit also seeks lost profits, interest, penalties, and costs.
What’s Next
The case was originally filed in Michigan state court in September 2025. Karjo’s attorneys removed it to federal court (U.S. District Court for the Eastern District of Michigan) in October 2025, citing diversity jurisdiction — the plaintiff is based in California, the defendants in Michigan, and the amount in controversy exceeds $75,000.
The complaint includes claims for breach of contract, promissory estoppel, fraudulent inducement, unjust enrichment, conversion, fraud, and claim and delivery.
House of Hits Sports Cards, LLC is currently listed as “active” but “not in good standing” with the Michigan Department of Licensing and Regulatory Affairs, according to state records cited in the complaint.
The case is ongoing.
Case: Sords Card Emporium LLC v. House of Hits Sports Cards, LLC and Mike Karjo Case Number: 2:25-cv-13269-MFL-CI (E.D. Mich.) Filed: September 5, 2025 (state court); removed October 17, 2025 (federal court) Amount in Dispute: $253,261.88
