DeSantis v. Commonwealth Energy System

864 N.E.2d 1211, 68 Mass. App. Ct. 759, 2007 Mass. App. LEXIS 442, 2007 WL 1203642
CourtMassachusetts Appeals Court
DecidedApril 26, 2007
DocketNo. 06-P-538
StatusPublished
Cited by21 cases

This text of 864 N.E.2d 1211 (DeSantis v. Commonwealth Energy System) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DeSantis v. Commonwealth Energy System, 864 N.E.2d 1211, 68 Mass. App. Ct. 759, 2007 Mass. App. LEXIS 442, 2007 WL 1203642 (Mass. Ct. App. 2007).

Opinion

Cypher, J.

This case arose from a challenge by the plaintiff, Nicholas J. DeSantis, to the method his former employer, COM/ Energy Marketing, Inc. (CEM Co.), used in paying him commissions for his securing contracts (supply contracts) for the sale of “natural gas commodity.” DeSantis’s complaint contained two counts alleging breach of express and implied contract for severance benefits, and two counts alleging breach of express and implied contract for sales commissions. A fifth count alleged violation of G. L. c. 149, § 148 (the wage act), for nonpayment of commissions.

By agreement of the parties, the case was bifurcated. A jury trial was conducted to address the questions whether there was an agreement for a severance package, or “lifeline,” and whether any commissions were owed. The jury were also asked special questions related to whether the commissions fell within the parameters of the wage act. The matters reserved for the jury-waived portion of the trial were whether any damages for lost commissions would be tripled pursuant to the wage act, whether the value of DeSantis’s pension had been diminished, and attorney’s fees.

After a seven-day trial in November, 2004, the jury determined that there was no lifeline severance agreement, but that CEM Co. was in breach of its employment contract with DeSantis. The jury awarded damages for commissions due of $79,598.10. Subsequently, the judge addressed the matters that had been reserved to him. Based on the jury’s answers to special questions, the judge concluded that the wage act had been violated by the failure to pay commissions and, pursuant to G. L. c. 149, § 150, trebled the damages, to $238,794.30. The judge also found that, as a result of the commissions not paid, DeSantis suffered a loss of $42,841.56 in pension benefits from October 1, 2001, when he began receiving benefits, up to the date of trial. The present value of lost pension benefits from the [761]*761date of trial for the duration of DeSantis’s life expectancy was determined to be $209,422.54. The judge thereafter ordered judgment for total damages of $491,058.48, and also awarded DeSantis attorney’s fees of $60,932.10, and costs of $2,346.55.

The defendants submitted a combined motion for judgment notwithstanding the verdict (judgment n.o.v.); to amend the judgment; or alternatively for a new trial. The combined motion was denied by the judge on December 30, 2005. This appeal by both parties followed.

The defendants argue that the judge abused his discretion in denying their combined motion for judgment n.o.v. and other relief, principally claiming that (1) DeSantis was not owed further commissions; (2) the judge erroneously ruled that the wage act was applicable; (3) DeSantis’s claim for pension damages was preempted by the Employee Retirement Income Security Act of 1974, 29 U.S.C. §§ 1001 et seq. (ERISA); and (4) the calculation of prejudgment interest was incorrect. In his cross appeal, DeSantis agrees that prejudgment interest was incorrectly determined and proposes an alternative calculation.

Background. In 1997, Commonwealth Energy System (System) formed CEM Co. to sell natural gas supply contracts to commercial and industrial customers in the market that resulted from the deregulation of the gas industry in the 1990’s. DeSantis, who had been an employee of Commonwealth Gas Company (another subsidiary of System) since 1985, was offered a position in CEM Co. as a sales representative by Robert T. Bucknell, CEM Co. vice-president of sales. DeSantis accepted in July, 1997. During the course of his employment with CEM Co., DeSantis sold some seventy-five single- and multiple-year supply contracts. On February 23, 1999, CEM Co. was sold to Reliant Energy Retail, Inc. (Reliant), and DeSantis’s employment with CEM Co. was terminated effective a few days later. DeSantis thereafter accepted employment with Reliant as a salesman.2

During his employment with CEM Co., DeSantis received monthly salary payments, but he received no commissions until October, 1998, followed by two additional payments, one in [762]*762December, 1998, and another in June, 1999, after he had left CEM Co. Occupied with his sales work, and thinking CEM Co. would pay, DeSantis did not complain about the delayed payment of commissions.

Beginning in October, 1998, CEM Co. informed its employees that a buyer was being sought for the company. In that month, DeSantis was asked to meet with Victor DiNardo, director of human resources, and Carol Cormier, benefits administrator, to discuss the effect of the sale on his future employment. DeSantis was informed of benefits available upon termination; when he was told about company policy on severance payments, he said that it was not what he expected from earlier discussions with Bucknell. Particularly concerned that he had sold nearly seventy-five supply contracts for which commission payments had been delayed, DeSantis stated that those commissions had to be paid. DeSantis was told that his commissions would be paid only as long as he remained an employee of CEM Co. He testified that he did not recall what his response was, but that “I had a funny feeling in the pit of my stomach, to say the least.” DeSantis contacted an attorney soon after that meeting.3

Discussion. We recite the familiar standard: “When acting on a defendant’s motion for judgment notwithstanding the verdict, the judge’s task, ‘taking into account all the evidence in its aspect most favorable to the plaintiff, [is] to determine whether, without weighing the credibility of the witnesses or otherwise considering the weight of the evidence, the jury reasonably could return a verdict for the plaintiff.’ ” Tosti v. Ayik, 394 Mass. 482, 494 (1985), S.C., 400 Mass. 224, cert. denied sub nom. United Auto Wkrs., Local 422 v. Tosti, 484 U.S. 964 (1987), quoting from Rubel v. Hayden, Harding & Buchanan, Inc., 15 Mass. App. Ct. 252, 254 (1983). “Conflicting evidence alone does not justify judgment notwithstanding the verdict. . . . The court may not [763]*763substitute its judgment of the facts for that of the jury.” Tosti v. Ayik, supra. It is unavailing for a defendant to argue that there was evidence warranting a contrary finding by the jury. CurtissWright Corp. v. Edel-Brown Tool & Die Co., 381 Mass. 1, 4 (1980). “[W]e inquire . . . whether from the evidence it was possible to draw enough reasonable inferences to make out the elements of the plaintiffs case.” Hall v. Horizon House Microwave, Inc., 24 Mass. App. Ct. 84, 89-90 (1987), and cases cited.4

1. Breach of contract payment of commissions. The defendants argue that there was no evidence of a contractual agreement to pay DeSantis’s commission upon his sale of a supply contract rather than at a later date. The judge stated, “There was evidence from which the jury could reasonably conclude that, according to the terms of DeSantis’[s] employment, commissions were due and payable when DeSantis booked a sales contract.” The judge also referred to evidence relating to the “nature of trading natural gas commodity futures” and “CEM Co.’s method of recording [supply] contracts and its calculation of commissions based on this method.” Our examination of the evidence supports the judge’s conclusion.

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Bluebook (online)
864 N.E.2d 1211, 68 Mass. App. Ct. 759, 2007 Mass. App. LEXIS 442, 2007 WL 1203642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/desantis-v-commonwealth-energy-system-massappct-2007.