Fedayi Cebe, et al. v. Bisoft Inc., et al.

District Court, E.D. Pennsylvania·Decided July 29, 2026·No. 2:25-cv-04973·Unknown

Opinion

1IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

FEDAYI CEBE, et al., : CIVIL ACTION Plaintiffs, : : v. : : BISOFT INC., et al., : No. 25-cv-4973 Defendants. :

MEMORANDUM KENNEY, J. July 29, 2026 I. INTRODUCTION The Court writes for the benefit of the Parties and assumes familiarity with the underlying facts. The above-captioned action arises out of an alleged oral agreement between the Parties whereby Plaintiff Fedayi Cebe’s limited liability company (“LLC”), Fit Solutions, LLC, contracted with Defendant Bisoft Inc. to perform work for non-party Dow Chemical. ECF No. 1. Plaintiffs maintain the position that the Parties agreed orally that Defendants would retain only $15 for every hour of work Cebe performed for Dow and that Dow would set Cebe’s hourly rate. Id. However, Defendants dispute that such an arrangement ever existed between the Parties. See ECF No. 49. Presently before the Court is Defendant’s Motion for Summary Judgment on Plaintiffs’ remaining claim for breach of contract. Id. For the reasons set forth below, the Motion (ECF No. 49) will be DENIED and Plaintiffs’ breach of contract claim will proceed to trial. II. BACKGROUND A. Procedural History On August 29, 2025, plaintiffs Fedayi Cebe and Fit Solutions, LLC (“Fit Solutions”) (collectively, “Plaintiffs”) initiated the instant litigation by filing a complaint against Defendants asserted claims for conversion, fraud, and breach of contract. Id. ¶¶ 25–39. Bisoft and Muchivolu moved to dismiss the Complaint for failure to state a claim. ECF No. 13. The Court granted Bisoft and Muchivolu’s Motion in part and dismissed, without prejudice, Plaintiffs’ conversion and fraud claims in their entirety and dismissed Plaintiffs’ breach of contract claim against Defendant

Muchivolu. ECF Nos. 15–16. Thereafter, Plaintiffs were granted leave to amend their Complaint. ECF No. 28. On February 25, 2026, Plaintiffs filed an Amended Complaint. ECF No. 31. The Amended Complaint set forth claims against Bisoft and Muchivolu for conversion, fraud, breach of contract, and violations of the Pennsylvania Wage Payment and Collection Law (“WPCL”). ECF No. 31 ¶¶ 40–60. Bisoft and Muchivolu moved to dismiss all claims brought against Defendant Muchivolu, and to dismiss Plaintiffs’ conversion, fraud, and WPCL claims in their entirety. ECF No. 37. The Court granted Bisoft and Muchivolu’s motion and Ordered Defendant Bisoft (hereinafter, “Defendant”) to answer the remaining breach of contract claim.1 ECF Nos. 42 at 2– 7; 43 at 1.

Defendant now moves for summary judgment on Plaintiffs’ remaining breach of contract claim. ECF No. 49. The matter has been fully briefed and will be decided based on the submissions without oral argument. ECF Nos. 50–52. B. Factual Background The following facts are taken from the Defendant’s Concise Statement of Stipulated Facts (ECF No. 49) as well as the Parties’ respective Statements of Additional Material Facts (Id., 51-1) to the extent those facts are well-supported by pinpoint citations to the record. See Fed. R. Civ. P.

1 On April 14, 2026, Plaintiffs moved for reconsideration of the Court’s Memorandum and Order granting in part Defendants’ Motion to Dismiss. ECF No. 45. That Motion was denied on April 23, 2026. ECF No. 48. 56(c)(1); see also Ullrich v. U.S. Sec. of Veterans Affs., 457 F. App’x. 132, 137 (3d Cir. 2012) (“Rule 56 explicitly requires the party asserting the absence or existence of a genuinely disputed fact to support that assertion by citing to specific parts of the record.” (citation omitted)). From 2015–2024, Plaintiff Fedayi Cebe worked as a subcontractor for non-party Dow Chemical (“Dow”) through his LLC, Fit Solutions. ECF No. 49 ¶ 12.2 The arrangement worked

as follows: Fit Solutions contracted with Bisoft, another company, to do the work for Dow. Id. ¶ 14. And every month, Fit Solutions provided Bisoft with an invoice for the hours it worked for Dow. Id. ¶ 15. Neither Party disputes that there are no or communications that exist between the Parties that specifies or otherwise evidences the payment structure that Plaintiffs maintain was the Parties’ arrangement. Id. ¶ 24; ECF No. 49-3 at 1. But the Parties do, of course, dispute whether or not Bisoft and Plaintiffs formed the agreement that Plaintiffs claim that they did. See ECF No. 49 ¶¶ 19–23; see also ECF No. 51-1 ¶¶ 19–23. Namely, that Cebe would work for Dow as a subcontractor of Bisoft, that Cebe would work for Bisoft through his LLC, Fit Solutions, and that Bisoft would pay Fit Solutions an hourly rate that was to be the hourly rate that Dow was paying

Bisoft for Fit Solution’s labor, less $15 per hour. See ECF No. 49 ¶¶ 19–23; see also ECF No. 51- 1 ¶¶ 19–23. According to Defendant, Bisoft never agreed to retain only $15 per hour from the hourly rate that Dow was paying for the work Fit Solutions performed and to remit the remaining balance from Dow to Fit Solutions. ECF No. 49 ¶¶ 19–20. Defendant never agreed that Fit Solution’s compensation would increase, per hour, commensurate with any increase in the hourly rate Dow

2 Defendant has included its “Concise Statement of Stipulated Material Facts” and “Concise Statement of Additional Facts” in Parts II and III of its Memorandum of law in Support of Motion for Summary Judgment. ECF No. 49 at 3–6. Defendant has set forth both Statements of Fact in continuous, numbered paragraphs as required by Judge Kenney’s Policies and Procedures for Counsel. Accordingly, the Court refers to Defendant’s Statements of Fact by paragraph number. was paying Bisoft for Fit Solutions’ work. Id. ¶ 21. Instead, the Parties agreed that Bisoft would pay Fit Solutions for the hours it worked for Dow at a “certain” hourly rate, i.e., a flat hourly rate. See id. ¶ 22. This agreement was separate from the agreement between Dow and Bisoft concerning the hourly rate that Dow would pay Bisoft for Fit Solutions’ work. Id. ¶ 23.3 Plaintiffs never

demanded payment based upon an increase in the hourly rate for Fit Solutions’ work that Bisoft had negotiated with Dow. Id. ¶ 28. According to Plaintiffs, Muchivolu indicated that Dow would pay Bisoft $120 per hour for Fit Solutions’ work, and that Bisoft would retain $15 per hour and pay Fit Solutions the rest of the money from Dow. ECF No. 51-1 ¶ 32; ECF No. 50-1 ¶ 5. Specifically, Muchivolu and Cebe agreed that, acting through his LLC, he would perform the work for Dow, and that Bisoft would pay his LLC the same hourly wage, minus $15 per hour. ECF No. 51-1 ¶ 32; ECF No. 50-1 ¶ 5. Every year, in October, when Bisoft renewed its contract with Dow, Cebe inquired with Muchivolu to ask if his hourly rate had been increased. ECF No. 51-1 ¶ 39; ECF No. 50-1 ¶ 9. Each time, Muchibolu responded that there was no increase. ECF No. 51-1 ¶ 40; ECF No. 50-1 ¶ 9. Cebe

was later told by a coworker that Dow had increased the rate for his work, but that Muchivolu had concealed that from him and continued to pay him his previous rate as if there had not been a raise. ECF No. 51-1 ¶ 41; ECF No. 50-1 ¶ 10. When Cebe confronted Muchivolu about the discrepancy, Muchivolu confessed that Dow had raised his Fit Solutions’ hourly rate and that he had kept it secret, resulting in underpayment. ECF No. 51-1 ¶¶ 42–43; ECF No. 50-1 ¶ 11. Muchivolu

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Fedayi Cebe, et al. v. Bisoft Inc., et al., (E.D. Pa. 2026).

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