Yea it does happen,they are a little weak coming out of winter and a wet spring and some cool or cold weather can make them sick easy,you did the right thing putting fungicide on them but it may be a while because they grow so slow,anyway they should live through their suckers if nothing else-good luck

Needle Palms are finicky for about the first 3-4 years in the ground dealing with winter. Some pull through with no damage, while others take damage even with protection. They do generally survive and seem to get hardier after their 3rd year in the ground. I have found them to be even more prone to winter damage than even Windmill Palms which generally do not have as much of an absolute hardiness when compared to the Needle Palm. In my area the Needle Palm when established, is bullet proof, the Windmill most years is too except in rare zone defining cold can be damaged or even killed in some cases.

Todd, I think part of the problem is uncovering too early.
While it's still cold any water that gets into the crown will chill the crown and cause rot. I had the same problem several years back.

What I found worked, was to go ahead and uncover, but to leave a little "roof" over the top to stop cold rain from getting into the crown (assuming that the crown was dry to begin with).

Since doing that, I have had no spear pulls at all.

I had two great looking Needles that the same thing happned to a coupkle fo years ago. I've decided to stick with Sabal Minors. Their growth center is underground as oppsed to a needle's which is above ground. I havfe four minors in the ground that just came through their 2nd winter. Looking ruff but alive.