Deeds v. Waddell & Reed Investment Management Co.

280 P.3d 786, 47 Kan. App. 2d 499, 2012 WL 1563986, 2012 Kan. App. LEXIS 45
CourtCourt of Appeals of Kansas
DecidedMay 4, 2012
DocketNo. 104,949
StatusPublished
Cited by9 cases

This text of 280 P.3d 786 (Deeds v. Waddell & Reed Investment Management Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deeds v. Waddell & Reed Investment Management Co., 280 P.3d 786, 47 Kan. App. 2d 499, 2012 WL 1563986, 2012 Kan. App. LEXIS 45 (kanctapp 2012).

Opinion

Leben, J.:

In 2007, Waddell & Reed fired Charles Deeds from his position as a sales marketing executive. A year later, Deeds filed an administrative claim (still pending) under the Kansas Wage Payment Act seeking more than $1 million in commissions he said he had earned that hadn’t been paid to him. In 2009, Deeds sued Waddell & Reed, alleging that it had fired him in retaliation for exercising his rights under the Kansas Wage Payment Act.

But a person can’t be fired in retaliation for exercising rights under the Kansas Wage Payment Act unless the employee has given some indication that he or she is acting under its provisions. Here, Deeds complained about changes in the compensation system but was personally unaware of the Kansas Wage Payment Act and never suggested he was making a claim under its provisions. The equivocal statements Deeds made to his employer are not enough to support a lawsuit alleging that he was fired for exercising rights under the Kansas Wage Payment Act.

Deeds attempts to create other exceptions to the Kansas employment-at-will rule, under which the employer usually can fire an employee at any time for any reason. These attempts fail because Deeds has not cited a clear Kansas public policy to support his position, a requirement for an exception to be made. Deeds also attempts to use the equitable claim of unjust enrichment to proceed in court on his claim for commissions — arguing that Wad-dell & Reed received an unfair benefit by retaining the commissions, so Deeds should be compensated — but that is contrary to the longstanding rule that an equitable claim is not available when a legal remedy exists. Since Deeds is seeking the same recoveiy in his administrative claim under the Kansas Wage Payment Act, his equitable claim fails. The district court granted summary judgment to Waddell & Reed, and we find that its judgment was proper.

Factual Background

Waddell & Reed hired Charles Deeds as vice president of marketing and client service for the Southeast region in 1998. There was no employment contract that specified the duration of Deeds’ employment, and the parties agree that Deeds was an at-will employee of Waddell & Reed, so tire company was free to end Deeds’ [501]*501employment at any time. Deeds started with a base salary of $77,000, plus commissions based on sales production and ongoing client servicing. The commissions for selling new accounts were 20 percent of revenues in the first year, 10 percent in the second year, 5 percent in the third and fourth years, and 2.5 percent for each year following, which was termed a “trailer” commission. The commission was capped at $50,000 per account per year. The parties disagree about whether Deeds still must be employed by Waddell 6 Reed to earn the trailer commission.

Waddell & Reed changed the commission schedule effective July 1, 2005. The new schedule phased out the trailer commission so that it no longer would be paid after July 1,2007. Deeds testified that he believed he had earned these commissions at the time of sale and would be paid these commissions every year as long as the account remained with Waddell & Reed.

Deeds complained about the 2005 commission change to Wad-dell & Reed’s management at least five times. Deeds first complained to Nikki Newton, his supervisor, about what he perceived to be the retroactive nature of the change; Deeds felt that Waddell & Reed was changing an existing compensation agreement. Later in 2005, Deeds complained to Newton’s supervisor, John Sundeen, and said he didn’t believe “it was right” to change the commission structure. Deeds complained to Sundeen and Newton again in 2006. Later, Deeds admitted he didn’t know what the law was under the Kansas Wage Payment Act at the time of these complaints. When Newton asked Deeds what he wanted, Deeds answered, “A fair compensation plan or return of those trailer commissions.” In early 2007, Deeds said Newton told him he would take Deeds’ request to management and get back to him.

Waddell & Reed fired Deeds on April 9, 2007. Newton told Deeds that Waddell & Reed decided not to change the commission schedule, so the company terminated Deeds’ employment because management knew Deeds wasn’t going to be happy about the decision. Newton assumed Deeds’ largest account and received its commissions. About a year after Deeds was fired, he filed a wage claim under the Kansas Wage Payment Act with the Kansas Department of Labor for more than $1 million. In 2009, a hearing [502]*502officer denied Deeds’ wage claim. An administrative review of the hearing officer’s order was pending as of July 2010.

In 2009, Deeds brought claims against Waddell & Reed under four theories related to his termination and commissions: retaliatory discharge, wrongful discharge, prevention, and unjust enrichment. The district court granted Waddell & Reed’s motion for summary judgment August 2, 2010. Deeds has appealed to this court.

Analysis

I. Deeds Has Not Established Factual Support for a Retaliatory-Discharge Claim under the Kansas Wage Payment Act.

Deeds’ first legal claim is a common-law claim regarding his discharge from Waddell & Reed that he alleges came in retaliation for exercising his rights under the Kansas Wage Payment Act, K.S.A. 44-313 et seq. The district court granted summary judgment to Waddell & Reed because no Kansas appellate court had recognized a retaliatory-discharge claim related to the exercise of Kansas Wage Payment Act rights. Rut the Kansas Supreme Court recognized that cause of action in Campbell v. Husky Hogs, 292 Kan. 225, Syl. ¶ 1, 255 P.3d 1 (2011). So the question before us is whether Deeds has provided sufficient factual support to malee such a claim.

We first briefly review the rules we must apply to determine whether Deeds has presented a sufficient claim. Questions of law, “including those at the heart of summary judgment decisions,” are subject to unlimited review on appeal. Thomas v. Board of Shawnee County Comm’rs, 293 Kan. 208, 221, 262 P.3d 336 (2011). Summary judgment is appropriate when there is no genuine issue as to any material fact and when a party cannot prevail as a matter of law even when the court, as required, looks at all facts and inferences that may be reasonably drawn from the evidence in the party’s favor. When opposing a motion for summary judgment, an adverse party must come forward with evidence to establish a dispute as to a material fact. In order to prevent summary judgment, the facts subject to the dispute must be material to the conclusive issues in the case. Osterhaus v. Toth, 291 Kan. 759, 768, 249 P.3d [503]*503888 (2011). On appeal, the same rules apply. So this court looks at the evidence in a light favorable to Deeds and requires Deeds to come forward with evidence to establish a dispute as to a material fact. Summary judgment must be denied if reasonable minds could differ as to the conclusions drawn from the evidence, 291 Kan. at 768, but a party can’t avoid summary judgment on the mere hope that something may develop later at trial. U.S.D. No. 232 v. CWD Investments, 288 Kan.

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Bluebook (online)
280 P.3d 786, 47 Kan. App. 2d 499, 2012 WL 1563986, 2012 Kan. App. LEXIS 45, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deeds-v-waddell-reed-investment-management-co-kanctapp-2012.