Dinan v. Alpha Networks Inc.

957 F. Supp. 2d 44, 2013 WL 3762649, 2013 U.S. Dist. LEXIS 98788
CourtDistrict Court, D. Maine
DecidedJuly 15, 2013
DocketNo. 2:10-cv-00340-JAW
StatusPublished
Cited by3 cases

This text of 957 F. Supp. 2d 44 (Dinan v. Alpha Networks Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dinan v. Alpha Networks Inc., 957 F. Supp. 2d 44, 2013 WL 3762649, 2013 U.S. Dist. LEXIS 98788 (D. Me. 2013).

Opinion

ORDER ON CHOICE OF LAW

JOHN A. WOODCOCK, JR., Chief Judge.

After a federal jury awarded Michael Dinan damages of $70,331.93 in quantum [46]*46meruit in a lawsuit he brought against his former employer, Alpha Networks, Inc., the parties filed post-trial briefs, requesting the Court to (1) determine whether Maine or California law triggered wage payment penalty provisions and would entitle Mr. Dinan to an increased damages award and attorney’s fees, and (2) to clarify, in the event Maine or California wage penalty provisions applied, what damages amount pre-judgment interest would run on. The Court concludes that California law applies to the jury’s quantum meruit award and that Mr. Dinan is entitled under California law to an additional award of thirty days wages. Further, the Court orders Alpha to pay Mr. Dinan pre-judgment interest according to Maine Revised Statutes, title 14, section 1602-B.

I. STATEMENT OF FACTS

A. The Lawsuit

Michael Dinan filed an amended complaint with the Court on November 8, 2010 against his former employer, Alpha Networks, Inc. (Alpha), for violation of Maine’s Timely and Full Payment Wages Law (Maine Revised Statutes, title 26, section 626), breach of contract, breach of quasi-contract, and unjust enrichment. Pl. ’s First Am, Compl. (ECF No. 24) (Am. Compl.). On the third day of trial, the jury returned a verdict and found:

1) That Mr. Dinan had not established that Alpha and he entered into an employment agreement in which Alpha promised to pay him commissions for 2009 and 2010;
2) That Alpha and Mr. Dinan had entered into a valid Separation Agreement and General Release;
3) That Alpha repudiated or breached the Separation Agreement and General Release;
4) That Mr. Dinan had established that he is entitled to damages under quasi-contract;
5) That the reasonable value of the services that Mr. Dinan had established he was entitled to receive from Alpha under quasi-contract was $70,331.93;
6) That Alpha had failed to pay Mr. Dinan his wages, including commissions; and
7) That the value of thirty days wages, including commissions, for Mr. Dinan was $7,799.67.

Jury Verdict (ECF No. 97).

On September 1, 2011, Mr. Dinan filed a motion for the Court to treble the damages and add costs, interest, and attorney’s fees to the judgment pursuant to Maine Revised Statutes, title 26, section 626 or to certify the question to the Maine Supreme Judicial Court as to whether Maine’s Timely and Full Payment of Wages Law applies to the reasonable value of an employee’s services under quantum meruit. PI. Michael Dinan’s Mot. that the Ct. Treble the Damages and Add Costs, Interest and Att’y’s Fees to the J. in Accordance with 26 M.R.S.A 626, or in the Alternative to Certify This Issue to the Maine Supreme Judicial Court in Accordance with k M.R.S.A. [§ ] 57 (ECF No. 106) (Pi’s Mot.). Alpha responded on September 21, 2011. Alpha Networks’ Obj. to Pi’s Mot. that the Ct. Apply Maine Law or Certify the Issue to the Maine Supreme Judicial Ct. (ECF No. 108) (Def.’s Opp’n). On September 29, 2011, Mr. Dinan replied to Alpha’s opposition. Michael Dinan’s Reply Brief to Alpha Networks’ Obj. to PI. ’s Mot. that the Ct. Apply Maine Law or Certify the Issue to the Maine Supreme Judicial Ct. (ECF No. 109) (Pi’s Reply).

On April 23, 2012, the Court issued an Order certifying Mr. Dinan’s question— whether Maine Revised Statutes, title 26, section 626, applies to an employee’s quantum meruit damages award — to the Maine Law Court. Order on PI. Michael Di-nan’s Mot. that the Ct. Treble the Dam[47]*47ages and Add Costs, Interest, and Att’y’s Fees to the J. in Accordance with 26 M.R.S.A. [§ ] 626, or in the Alternative Certify this Issue to the Maine Supreme Judicial Court in Accordance with I M.R.S.A. [§ ] 57 (ECF No. 110) {Order). On February 21, 2013, the Maine Law Court issued an opinion concluding that Maine Revised Statutes, title 26, section 626, may apply to employees’ quantum meruit awards if the award is for services of the type for which an employee would have been due wages:

Whether a quantum meruit recovery activates the penalty provision of section 626 depends on the first element of a quantum meruit claim: the services rendered. If those services are of the type for which an employee would have been due wages, then application of section 626 to a recovery in quantum meruit is appropriate. If not, section 626 would not apply.

Dinan v. Alpha Networks, Inc., 2013 ME 22, ¶ 2, 60 A.3d 792, 794.

On March 22, 2013, the Court held a telephone conference in which Mr. Dinan and Alpha agreed that given the Law Court’s decision, the Court should decide which state’s law applies to this case. Minute Entry (ECF No. 114). On March 28, 2013, Alpha filed a memorandum on the choice of law question. Def.’s Mem. on Miscellaneous Damages Issues Raised by the Choice of Law Question Pending Before the CouH (ECF No. 115) {Def.’s Damages Mem.). On April 2, 2013, Mr. Dinan filed a memorandum regarding the appropriate choice of law, damages, interest, and attorney’s fees. Pl.’s Mem. of Law on Damages, Interest, and Att’y’s Fees (ECF No. 116) {Pl.’s Damages Mem.).

B. The Underlying Dispute1

Mr. Dinan worked as a salesman for Alpha, a California corporation, from November 10, 2005 until March 12, 2010. See Order at 2; Def.’s Opp’n at 3. On November 10, 2005, Mr. Dinan signed an Employment Agreement, which contained a California choice of law provision. Order at 2-3; see Def.’s Answer, Affirmative Defenses and Countercl. (Def.’s Answer) Attach 1, Employment Agreement (ECF No. 9-1). The choice of law provision stated:

The terms and conditions contained in this offer letter supersede any other representations made to you, whether oral or written and cannot be changed without the express written approval of an Officer of the Company. The terms of this letter shall be governed by and construed and enforced in accordance with the laws of the State of California, without giving effect to any choice or conflict of law provision or rule (whether of the State of California or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of California. Any term or provision of this letter agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

Employment Agreement ¶ 9. The agreement also included provisions concerning Mr. Dinan’s base salary and incentive pay. Order at 3; Employment Agreement ¶ 2.

Alpha initiated a new bonus plan in 2008, which reduced the amount Mr. Dinan and other employees received in incentive pay. Order at 3. The lower bonuses from the plan caused discontent among the salespeople, including Mr. Dinan. Id. In 2009, Alpha promised to adopt a new incentive plan and Mr.

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Bluebook (online)
957 F. Supp. 2d 44, 2013 WL 3762649, 2013 U.S. Dist. LEXIS 98788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dinan-v-alpha-networks-inc-med-2013.