Cui v. Planet Green Holdings, Inc.

CourtDistrict Court, E.D. New York
DecidedJuly 29, 2024
Docket1:23-cv-05683
StatusUnknown

This text of Cui v. Planet Green Holdings, Inc. (Cui v. Planet Green Holdings, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cui v. Planet Green Holdings, Inc., (E.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK --------------------------------------------------------------- X : DAQI CUI, :

Plaintiff, : MEMORANDUM DECISION AND ORDER : – against – 23-CV-5683 (AMD) (VMS) :

PLANET GREEN HOLDINGS, INC., :

: Defendant. : --------------------------------------------------------------- X

ANN M. DONNELLY, United States District Judge: The plaintiff brought this diversity action, asserting breach of contract and unjust enrichment claims, against the defendant, his former employer. The plaintiff alleges that the defendant did not pay him wages and benefits as required by their employment agreement, repay loans the plaintiff made to the defendant, or reimburse the plaintiff for his employment-related expenditures. The plaintiff seeks unpaid wages, reasonable attorney’s fees, prejudgment interest, and liquidated damages. The defendant moves to dismiss the complaint. For the reasons that follow, the Court grants the motion, but gives the plaintiff leave to file an amended complaint. BACKGROUND Factual Background In June 2019, the plaintiff joined Planet Green as Chief Operating Officer at an annual base salary of $96,000. (ECF No. 12 ¶ 3; see also ECF No. 1-2 ¶¶ 3, 4(a)-(b) (Ex. A, Employment Agreement).) Planet Green’s Board of Directors appointed him Chief Operating Officer on June 18, 2019. (ECF No. 1-3 at 26 (Ex. B, Form 10-K).) The parties also entered into an employment agreement, which became effective on June 18, 2019. (ECF No. 1-2 at 2.) Pursuant to the agreement, the plaintiff would “serve as Chief Operating Officer” and fulfill the “duties and responsibilities” of COO, “devot[ing] his full business time, attention, skill and efforts to the business and affairs of the Company.” (Id. ¶ 3.)1 The employment agreement included provisions for terminating the plaintiff’s employment. Sections 5(a) and (b) provided that the employment agreement could be terminated

“[B]y [the] Company for Cause” or “[B]y [the] Executive for Good Reason,” respectively. (Id. ¶¶ 5(a), 5(b).) Section 5(c) described a third termination scenario: This Agreement shall terminate immediately upon the death of Executive or the Company’s determination of Executive’s ‘Disability’ . . . or (ii) if the Company does not maintain any such disability policy on the date of determination, the inability of the Executive to work for a period of six (6) full calendar months during any nine (9) consecutive calendar month period due to illness or injury of a physical or mental nature, supported by the completion . . . of a medical certification form outlining the disability and treatment, if at the end of such disability period, there is no reasonable probability of Executive promptly resuming full-time service pursuant to the terms of this Agreement.

(Id. ¶ 5(c).) Section 6(a) of the employment agreement provided that the defendant would give the plaintiff a “written Notice of Termination” if the defendant terminated the plaintiff’s employment. If the plaintiff terminated his employment, he had to give the notice to the defendant. (Id. ¶ 6(a).) The agreement also included an integration clause, which stated that the agreement “constitutes the entire agreement between the parties pertaining to the subject matter hereof, and fully supersedes any and all prior agreements between the parties” and that “no

1 The employment agreement referred to the plaintiff as “Executive.” (See, e.g., ECF No. 1-2 at 2 (“WHEREAS, the Company desires to employ the Executive and the Executive desired to be employed by the Company on the terms and conditions herein provided.”).) amendment or modification . . . shall be valid unless” it is written and signed by the parties. (Id. ¶ 19.)2 Section 4(c), which addressed business-related expenses, provided: The Company shall reimburse the Executive for all reasonable out- of-pocket travel or other business expenses actually incurred or paid by the Executive in connection with the performance of his duties and obligations under this Agreement, subject to the Executive’s presentation of itemized vouchers, receipts and documentation and consistent with the reimbursement policies and procedures as the Company may, from time to time, establish for senior officers.

(Id. ¶ 4(c).) The plaintiff alleges that he loaned the defendant $160,000 in 2019 and spent “a total of $116,000 in personal fund[s] . . . for the [defendant] under an understanding of reimbursement.” (ECF No. 12 ¶ 12.) Although Planet Green officers “acknowledged these loans,” the loans have not been repaid, nor has the plaintiff been reimbursed. (Id. ¶ 13.) In 2020, the plaintiff was injured in a car accident while he was traveling for work.3 On October 21, 2020, after the car accident, he resigned as COO “for health reasons.” (Id. ¶ 4.) The defendant disclosed the plaintiff’s resignation on its Form 10-K, which it filed with the U.S. Securities and Exchange Commission in March 2021 for the fiscal year ending December 31, 2020. (ECF No. 1-3 at 26 (“Mr. Cui resigned as Chief Operating Officer on October 21, 2020, due to his personal health reasons and continued to be employed by the Company.”).) Although the plaintiff resigned as COO, he continued to work for the defendant, “performing substantially similar duties for the same compensation.” (ECF No. 12 ¶ 4.) The

2 The employment agreement provides that New York law governs the “validity, interpretation, construction and performance” of the agreement. (ECF No. 1-2 ¶ 21.) 3 The complaint does not include the date of the car accident but says that it occurred before the plaintiff resigned as COO. (ECF No. 12 ¶ 4.) defendant did not complain about his job performance during his employment. (Id. ¶ 6.) In November 2021, the defendant stopped paying the plaintiff salary and benefits, and stopped giving him written wage statements. (Id. ¶ 7.) The plaintiff notified the defendant that he was owed unpaid wages but continued working for the defendant. (Id. ¶ 8.) As of June 2023, the plaintiff had not received wages and benefits. (Id.)4

Procedural History On July 27, 2023, the plaintiff brought this action, claiming breach of contract and unjust enrichment, and seeking $333,145.05 in unpaid salary and unpaid benefits, $276,000 in unpaid loans to the defendant, interest, costs, and reasonable attorney’s fees. (ECF No. 1.) The defendant moves to dismiss the complaint pursuant to Federal Rule of Civil Procedure 12(b)(6) for failing to state a claim upon which relief can be granted. (ECF No. 14.) LEGAL STANDARD To survive a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), a complaint must contain “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the

defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). While “detailed factual allegations” are not required, “[a] pleading that offers ‘labels and conclusions’ or a ‘formulaic recitation of the elements of a cause of action will not do.’” Id. (quoting Twombly, 550 U.S. at 555). Pleadings are construed in the light most favorable to the plaintiff. Hayden v. Paterson, 594 F.3d 150, 160 (2d Cir. 2010).

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Cui v. Planet Green Holdings, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/cui-v-planet-green-holdings-inc-nyed-2024.