Dennis Grimsley v. SimSpace Corporation et al.

CourtDistrict Court, D. Maryland
DecidedFebruary 19, 2026
Docket1:24-cv-02907
StatusUnknown

This text of Dennis Grimsley v. SimSpace Corporation et al. (Dennis Grimsley v. SimSpace Corporation et al.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dennis Grimsley v. SimSpace Corporation et al., (D. Md. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

* DENNIS GRIMSLEY, * Plaintiff, * v. * Civil No. 24-2907-BAH SIMSPACE CORPORATION ET AL., * Defendants. * * * * * * * * * * * * * * * MEMORANDUM OPINION

Plaintiff Dennis Grimsley (“Grimsley” or “Plaintiff”) brought suit against SimSpace Corporation (“SimSpace”) and William E. Hutchison (“Hutchison”) (collectively “Defendants”) in the Circuit Court for Anne Arundel County alleging violations of the Maryland Wage Payment and Collection Law (“MWPCL”), Md. Code Ann., Labor & Empl. § 3-501 et seq. See ECF 2. Grimsley’s complaint arises from Grimsley’s role as Vice President of U.S. Federal Sales at SimSpace between 2022 and 2024, and he seeks allegedly outstanding commissions from Defendants on at least seven “SimSpace deals closed in [] Grimsley’s territory during his employment.” See id. at 7. Defendants removed the action to this Court on the basis of diversity jurisdiction. See ECF 1. Pending before the Court is Defendants’ motion for summary judgment. ECF 21. Grimsley filed an opposition, ECF 23, and Defendants filed a reply, ECF 26. All filings include memoranda of law and exhibits.1 The Court has reviewed all relevant filings and finds

1 The Court references all filings by their respective ECF numbers and page numbers by the ECF- generated page numbers at the top of the page. that no hearing is necessary.2 See Loc. R. 105.6 (D. Md. 2025). Accordingly, for the reasons stated below, Defendants’ motion for summary judgment is GRANTED. I. BACKGROUND A. Factual Background3 In 2015, Hutchison, as Chief Executive Office (“CEO”), and Lee Rossey, as Chief Technology Officer (“CTO”), co-founded SimSpace, “which provides cyber-attack trainings and

emulations to businesses in both the public and private sectors through innovative cyber range technology.” ECF 21-2, at 10; see also About Us, SimSpace, https://simspace.com/company-story/ [https://perma.cc/2HCY-8Y2J] (last visited Jan. 27, 2026); ECF 21-4, at 4, 7:1–8 (deposition of William Hutchison); ECF 21-16, at 2 (declaration of William Hutchison). Hutchison and Rossey each own 18% of SimSpace’s stock, respectively. ECF 21-4, at 7:9–17. Grimsley met Hutchison around 2011, while both men were serving in the United States military at United States Cyber Command. Id. at 5, 8:3–9; ECF 21-5, at 8, 24:4–17 (deposition of Dennis Grimsley); ECF 21-6, at 3–4; ECF 21-16, at 2. Hutchison left military service in 2014 and went on to co-found and work at SimSpace as its CEO, which was also his first private employment

2 Accordingly, Defendants’ request for a hearing on the motion, ECF 22, is denied.

3 In their memorandum attached to the motion for summary judgment, Defendants include a “Statement of Undisputed Material Facts.” See ECF 21-1, at 10. Grimsley includes in his opposition memorandum a numbered “Statement of Material Facts in Dispute,” see ECF 23-1, at 5, along with a response to Defendants’ factual statement in an exhibit attached to his opposition, see ECF 23-2. Defendants argue that “Neither Rule 56 of the Federal Rules of Civil Procedure or this Court’s Local Rules permit such a Statement.” ECF 26, at 6. In truth, neither the Federal Rules nor this Court’s Local Rules have much to say about how precisely parties should lay out facts (in dispute or undisputed) in their briefing on a motion for summary judgment. Defendants’ argument more likely takes issue with Grimsley’s exhibit on the basis that, if added to his memorandum, it exceeds the page limits applicable to memoranda in support of a motion or an opposition thereto. See Loc. R. 105.3 (D. Md. 2025). Regardless, the Court views the approach both parties’ have taken here as generally helpful in organizing the factual record. Accordingly, the Court considers all factual assertions as submitted by the parties. after his military service. ECF 21-4, at 5, 8:12–16. Grimsley later worked for Point3 Federal (“P3F”), a subcontractor to SimSpace on a government contract from 2017 to 2021. ECF 21-5, at 9, 25:6–20; ECF 21-6, at 2. Thereafter, Grimsley worked as the Director of Business Development at Leidos from 2021 to 2022. ECF 21-5, at 10–12, 38:3–40:4; ECF 21-6, at 2.

1. The 2022 Offer Letter Beginning in summer of 2022, Grimsley and Hutchison began communicating about Grimsley joining SimSpace and Grimsley’s potential compensation were he to do so. See ECF 21-7; ECF 21-8; ECF 21-9. In an email exchange between Grimsley and Hutchison in September of 2022, Grimsley indicated that SimSpace was perhaps “the only place that would make [him] consider leaving [his] current job” because he “underst[oo]d” what Hutchison was “trying to do” and thought SimSpace had “a great story to tell.” ECF 21-7, at 5. Grimsley indicated to Hutchison that he was currently the Director of Business Development at Leidos with a base salary of “230K w/24k in bonus to date pending [his] year end performance . . . which typically [fell] between 9- 10% of [his] base.” Id. At his deposition, Grimsley specified that he did not actually receive any incentive payments at Leidos because “Leidos does not compensate until you sell something over

$100 million, and I did not close a deal over $100 million during my time there.” ECF 23-9, at 12, 39:1–19. Grimsley also noted in his email to Hutchison that Grimsley had been asked to apply for a former boss’s position, which would have been “260-300k w/ 25% incentive.” ECF 21-7, at 5. Hutchison stated the next day that he sought to “move forward with an offer that [would] outcompete the pending [Leidos] position.” Id. at 4. Hutchison later indicated that “[w]e typically based our sales compensation using an On-Target Earnings arrangement . . . and formulate the structure from there.” Id. at 2. SimSpace Chief Financial Officer (“CFO”) James Gerber and Chief of Staff Ronald Gorman were eventually made aware of Hutchison’s communications with Grimsley and of Grimsley’s proposed compensation package. See ECF 21-10; ECF 23-4, at 26, 97:12–17. On September 18, 2022, Hutchison sent an email to Gerber, proposing that Grimsley should have a base salary of $260,000, a sales target of $2 million, and a base commission rate of $25%. See ECF 21-10, at 3. Gerber responded that a “more normal” base commission rate would be “10%,”

because “[a] 25% commission . . . on a $2m quota means you would have to pay him $500,000 on top of his base salary if he achieved that.” Id. at 2. Gerber ultimately proposed a $260,000 base salary, a 12% base commission rate on an annual quota of $2 million, and a windfall review for any contract that had an actual contract value (“ACV”) of greater than 80% of the quota, among other things. Id. Gerber remarks that the proposed offer would be “unusually rich, but if [Grimsley] is the guy, it is worth it in the near term.” Id. Gerber also forwarded his proposal to Gorman. See id. On September 21, 2022, Hutchison sent Grimsley an email with an outline of an offer of employment, hoping to “get [Grimsley’s] thoughts” on it. See ECF 21-11, at 3. In the email, Hutchison noted that the base salary would be $260,000, there would be a 12% base commission

rate on an annual quota of $2 million “for all deals originated and managed to a win,” and a “windfall review for any contract that ha[d] an ACV of >80% of quota.” Id. After some back and forth over the phone, on September 23, 2022, Hutchison sent Grimsley a follow-up email purporting to answer some his questions, and stating in relevant part that Grimsley “would earn a 12% commission for sales up to $2M (so, if you secured a $100k contract, you would earn $12k), “[u]psells originated by you – yes you would earn a commission.” Id. at 2; ECF 21-16, at 2.

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