Cestari v. Bancorp, Inc.

364 F. Supp. 3d 327
CourtDistrict Court, S.D. Illinois
DecidedFebruary 20, 2019
Docket17 Civ. 4054 (VM)
StatusPublished
Cited by1 cases

This text of 364 F. Supp. 3d 327 (Cestari v. Bancorp, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cestari v. Bancorp, Inc., 364 F. Supp. 3d 327 (S.D. Ill. 2019).

Opinion

VICTOR MARRERO, United States District Judge.

Plaintiff Robert M. Cestari ("Plaintiff" or "Cestari") filed this action against defendant The Bancorp, Inc. ("Defendant" or "Bancorp"), alleging violations of New York labor law and breach of contract. ("Original Complaint," Dkt. No. 1.) On July 16, 2018, Bancorp sought the Court's permission to file a motion for summary judgment, both on Plaintiff's claims and on Defendant's counterclaims. Bancorp also requested a pre-motion conference to discuss its contemplated motion. ("July 16 Letter," Dkt. No. 33.) By letter dated July 17, 2018, Cestari opposed Defendant's requests. ("July 17 Letter," Dkt. No. 34.) On July 30, 2018, the Court held a telephone conference during which it directed both parties to submit Rule 56.1 statements of material facts. (See Dkt. Minute Entry for 7/30/2018.) Bancorp filed its Rule 56.1 statement on September 7, 2018 ("Defendant's Rule 56.1 Statement," Dkt. No. 39), and Cestari filed his response to Defendant's Rule 56.1 Statement ("Plaintiff's Counter-statement," Dkt. No. 42), as well as his own Rule 56.1 statement ("Plaintiff's Rule 56.1 Statement," Dkt. No. 43), on September 28, 2018. By letter dated October 1, 2018, Bancorp reiterated its request to file a motion for summary judgment. ("October 1 Letter," Dkt. No. 45.)

For the reasons set forth below, Bancorp's request for a pre-motion conference regarding its contemplated motion for summary judgment is DENIED.

I. BACKGROUND 1

In September 2015, Bancorp hired Cestari as a Senior Vice President and Head of the Commercial Mortgage Backed Securitization Floating Rate Program. On March 8, 2017, Bancorp terminated Cestari's employment. The principal dispute in this action revolves around the reason for Cestari's termination. According to Cestari, Bancorp terminated his employment on pretextual grounds because the company did not want to pay him the commissions and vested bonus amounts that he alleges he earned. Meanwhile, Bancorp contends that it terminated Cestari's employment because he violated company policy by using his corporate credit card for personal expenses without reimbursing the company.

*330In his Original Complaint, Cestari asserts that Bancorp unlawfully terminated his employment. Cestari alleges that Bancorp thereafter failed to pay him a promised and earned bonus. According to Cestari, during a conversation in December 2016, Daniel Cohen ("Cohen"), the Chairman of Bancorp and the person to whom Cestari reported, promised Cestari an $ 800,000 bonus for 2016. Cestari alleges that, in February 2017, Bancorp paid him a $ 200,000 bonus in cash and issued him a stock grant valued at approximately $ 200,000 -- for a total bonus of $ 400,000, or only half of what he was owed.

Cestari also alleges that Bancorp failed to pay him promised and earned commissions for two specific transactions that he completed outside the scope of his normal job duties, namely, the "Wells Fargo Securitization" and the "Fixed Rate Portfolio Sale." (See Original Complaint ¶ 11.) According to Cestari, in August 2016, he and Cohen reached an agreement that Cestari would receive a commission of forty percent of the excess profit received by Bancorp as a result of the Wells Fargo Securitization above the two points the company expected from the sale of the loans. Cestari alleges that he subsequently completed the transaction, which netted Bancorp approximately $ 2.4 million in profit, thereby entitling him to a commission of approximately $ 600,000. Cestari alleges that Bancorp never paid him the promised and earned commission for the Wells Fargo Securitization. In a separate but similar claim, Cestari alleges that he and Cohen reached an agreement that Cestari would be paid half a point as a broker's fee on the Fixed Rate Portfolio Sale. Cestari contends that he completed the Fixed Rate Portfolio Sale, which netted Bancorp millions of dollars in profit, thereby entitling him to a commission of approximately $ 500,000. Cestari alleges that Bancorp -- as it did with the Wells Fargo Securitization -- never paid him the promised and earned commission for the Fixed Rate Portfolio Sale.

According to Cestari, Bancorp's stated reason for terminating his employment -- i.e., his use of a corporate credit card for personal expenses -- was pretextual because Cestari was never informed that such use of the credit card might result in the termination of his employment. Instead, Cestari hypothesizes that Bancorp terminated his employment to avoid paying him the promised and earned bonuses and commissions described above.

On June 8, 2017, Cestari filed an amended complaint in which he added causes of action for defamation per se and tortious interference with business relations. ("Amended Complaint," Dkt. No. 5, ¶¶ 55-62, 63-70.) Specifically, he alleges that, since his termination, Bancorp and its employee, Ron Wechsler ("Wechsler"), defamed him and tortiously interfered with his business relations by contacting the company with which Cestari was interviewing for a position, Oaktree Capital Management ("Oaktree"), to spread false information about his termination. Cestari further alleges that Bancorp employees have contacted other individuals for the sole purpose of harming him and preventing him from obtaining a new job. The Amended Complaint thus asserts five causes of action: (1) failure to pay wages - commissions; (2) breach of contract; (3) failure to pay wages - vested bonus amounts; (4) defamation per se; and (5) tortious interference with business relations.

On July 17, 2017, Bancorp answered the Amended Complaint, essentially denying all of Cestari's substantive allegations. ("Answer," Dkt. No. 14.) In addition to answering the Amended Complaint, Bancorp *331asserts twelve affirmative defenses.2 Bancorp also asserts five counterclaims against Plaintiff, all of which arise from Cestari's use of a corporate credit card for personal expenses (hereafter, the "Counterclaims"). Specifically, Bancorp asserts the following Counterclaims: (1) fraud; (2) equitable forfeiture and the faithless servant doctrine; (3) conversion; (4) unjust enrichment; and (5) breach of fiduciary duty.

According to Bancorp, the company issued Cestari a corporate credit card, which company policy indicated was to be used only for business-related expenses. Cestari allegedly signed an employee handbook and a code of ethics, both of which prohibited the use of the corporate credit card for personal purchases. Bancorp alleges that, beginning in January 2016, Cestari knowingly used his corporate credit card to charge thousands of dollars in personal expenses in violation of the company's policies. Bancorp further alleges that Cestari falsely represented to Bancorp that the credit card charges were for business purposes and never reimbursed Bancorp for those charges. Furthermore, according to Bancorp, the company released a revised travel and expense policy in February 2017, which gave employees ten business days to submit any outstanding expenses incurred prior to the issuance of the new policy. In connection with that policy, Bancorp notified Cestari that the company had discovered several non-business charges on his corporate credit card and gave him ten days to submit expense reports and/or reimburse the company for the outstanding charges.

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364 F. Supp. 3d 327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cestari-v-bancorp-inc-ilsd-2019.