Cressy v. Proctor

666 F. App'x 70
CourtCourt of Appeals for the Second Circuit
DecidedDecember 12, 2016
DocketDocket 15-4123-cv
StatusUnpublished

This text of 666 F. App'x 70 (Cressy v. Proctor) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cressy v. Proctor, 666 F. App'x 70 (2d Cir. 2016).

Opinion

SUMMARY ORDER

Following a bench trial, defendant-appellant Kevin Proctor appeals the district court’s award of quantum meruit restitution to plaintiff-appellee Ronald Cressy. We assume the parties’ familiarity with the underlying facts, the procedural history of the case, and the issues on appeal.

I. Standard of Review

The parties dispute the proper standard óf review with respect to the district court’s decision to award quantum meruit restitution. Proctor argues that “[w]hether quantum meruit damages were properly awarded in the circumstances presented is a question of law reviewed de novo.” Appellant’s Brief, 27. Cressy argues that “[u]nder both Vermont law and the law of this Circuit, review of this type of decision is limited to abuse of discretion.” Appel-lee’s Brief, 9, Proctor cites no authority in support of his position, and we can find none. We are convinced that, under both Vermont law and Second Circuit precedent, review is for abuse of. discretion, and to the extent that the decision under review relies on findings of fact, those findings are reviewed for clear error. See, e.g., Amara v. CIGNA Corp., 775 F.3d 510, 519 (2d Cir. 2014) (“The district court’s award of equitable relief also may be reversed only for an abuse of discretion or for a clear error of law. Where the district court’s determinations regarding ... equitable remedies are supported by findings of fact, such findings are reviewed under the ‘clearly erroneous’ standard.”); Weed v. Weed, 185 Vt. 83, 968 A.2d 310, 315 (2008) (‘We review equitable remedies.. .for a trial court’s abuse of discretion.”).

With respect to the district court’s rejection of the equitable affirmative defenses raised by Proctor, the parties agree that review on appeal is for abuse of discretion. With respect to the district court’s computation of damages, the parties agree that review is for clear error.

“A district court has abused its discretion if it based its ruling on an erroneous view of the law or on a clearly erroneous assessment of the evidence, or rendered a decision that cannot be located within the range of permissible decisions.” In re Sims, 534 F.3d 117, 132 (2d Cir. 2008) (internal citations, quotation marks, and alterations omitted). “A finding of fact is clearly erroneous only if, after reviewing all of the evidence, this Court is left “with the definite and firm conviction that a mistake has been committed.’ ” United States v. Cramer, 777 F.3d 597, 601 (2d Cir. 2015) (quoting Anderson v. City of Bessemer City, 470 U.S. 564, 573, 105 S.Ct. 1504, 84 L.Ed.2d 518 (1985)).

II. Quantum Meruit Restitution

The central dispute in this case is whether Cressy was entitled to equitable restitution for the benefit his labor conferred on Proctor’s business while the parties were in a domestic relationship. Under Vermont law, equitable restitution is “based on an implied promise to pay when a party receives a benefit and the retention of -the benefit would be inequitable.” DJ Painting, Inc. v. Baraw Enters., Inc., 172 Vt. 239, 776 A.2d 413, 417 (2001). The proper inquiry is “whether, in light of the totality of circumstances, it is against equity and good conscience to allow defendant to retain what is sought to be recovered.” Legault v. Legault, 142 Vt. 525, 459 A.2d *73 980, 984 (1983). Quantum meruit restitution is awarded when the appropriate measure of damages is the reasonable value of the claimant’s labor, regardless of its value to the claimee. See In re Estate of Elliott, 149 Vt. 248, 542 A.2d 282, 285 n.2 (1988) (distinguishing quantum meruit and' unjust enrichment measures of' restitution).

Having reviewed the district court’s decision and the record below, we are satisfied that the district court did not abuse its discretion in ruling that quantum meruit restitution was appropriate.

The court heard conflicting testimony regarding the materiality of the benefit conferred by Cressy’s labor at Synergy, and, in its role as fact finder at a bench trial, resolved these factual conflicts with its findings that Cressy was a full-time employee with administrative and clerical responsibilities who ran the day-to-day operations of the company. The evidence adduced at trial permitted this interpretation. “Where there are two permissible views of the evidence, the factfinder’s choice between them cannot be clearly erroneous.” United States v. Murphy, 703 F.3d 182, 188 (2d Cir. 2012) (quoting United States v. Iodice, 525 F.3d 179, 185 (2d Cir. 2008)). It was not clear error for the district court to find that Cressy’s labor rendered a material benefit to Proctor.

Proctor puts much emphasis on the undisputed facts showing that Cressy enjoyed an affluent lifestyle in the parties’ shared household during the time he was working for Synergy. He argues that Cres-sy, though not compensated by paycheck, was richly compensated by this lifestyle, paid for by Proctor. The district court rejected that argument, however, and ruled that whatever lifestyle benefits Cres-sy enjoyed were part of the normal exchange of domestic benefits in a domestic relationship. We agree with the district court. As Proctor’s domestic partner, Cres-sy would have expected to enjoy those sorts of lifestyle benefits, regardless of whether he contributed to Proctor’s business. By contrast, Cressy’s labor as a full-time employee of Synergy was not within the scope of the normal exchange of domestic benefits; Proctor could not have reasonably expected to enjoy the benefits of Cressy’s labor as a matter of course by virtue of the fact of their relationship alone.

The controlling case under Vermont law is Harman v. Rogers, 147 Vt. 11, 510 A.2d 161, 165 (1986), which also involved an unmarried couple, one of whom ran the day-to-day operations of a business owned by the other and was not compensated. There, the Vermont Supreme Court ruled that “[t]he only conclusion that can be fairly and reasonably drawn is that plaintiffs services in this regard materially ben-efitted the defendant” and directed the Superior Court to make a determination of the appropriate amount of restitution. Id. Proctor points to no relevant distinction between the facts before us and those in Harman. We see no abuse of discretion in the district court’s decision to award restitution for Cressy’s labor.

III. Laches and Estoppel

The district court correctly rejected Proctor’s assertion of laches. “Laches is the failure to assert a right for an unreasonable and unexplained period of time when the delay has been prejudicial to the adverse party, rendering it inequitable to enforce the right.” Chittenden v. Waterbury Ctr. Cmty.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Iodice
525 F.3d 179 (Second Circuit, 2008)
Anderson v. City of Bessemer City
470 U.S. 564 (Supreme Court, 1985)
United States v. Murphy
703 F.3d 182 (Second Circuit, 2012)
Weed v. Weed
2008 VT 121 (Supreme Court of Vermont, 2008)
Sims v. Blot
534 F.3d 117 (Second Circuit, 2008)
Legault v. Legault
459 A.2d 980 (Supreme Court of Vermont, 1983)
In Re Estate of Elliott
542 A.2d 282 (Supreme Court of Vermont, 1988)
Dj Painting, Inc. v. Baraw Enterprises, Inc.
776 A.2d 413 (Supreme Court of Vermont, 2001)
Chittenden v. Waterbury Center Community Church, Inc.
726 A.2d 20 (Supreme Court of Vermont, 1998)
In Re Vermont Electric Cooperative, Inc.
687 A.2d 883 (Supreme Court of Vermont, 1994)
Harman v. Rogers
510 A.2d 161 (Supreme Court of Vermont, 1986)
United States v. Cramer
777 F.3d 597 (Second Circuit, 2015)
Amara v. CIGNA Corp.
775 F.3d 510 (Second Circuit, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
666 F. App'x 70, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cressy-v-proctor-ca2-2016.