Giambruno v. Tribune Media Co.

2020 IL App (1st) 190859-U
CourtAppellate Court of Illinois
DecidedMarch 16, 2020
Docket1-19-0859
StatusUnpublished

This text of 2020 IL App (1st) 190859-U (Giambruno v. Tribune Media Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Giambruno v. Tribune Media Co., 2020 IL App (1st) 190859-U (Ill. Ct. App. 2020).

Opinion

2020 IL App (1st) 190859-U Order filed: March 16, 2020 Modified order upon denial of rehearing filed: May 8, 2020

FIRST DISTRICT FIFTH DIVISION

No. 1-19-0859

NOTICE: This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________ IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT ______________________________________________________________________________

DAVID GIAMBRUNO, ) Appeal from the ) Circuit Court of Plaintiff-Appellee/Cross-Appellant, ) Cook County ) v. ) No. 16 L 9995 ) TRIBUNE MEDIA COMPANY, a ) Delaware Corporation, ) Honorable ) Patrick J. Sherlock, Defendant-Appellant/Cross-Appellee. ) Judge, presiding. ______________________________________________________________________________

JUSTICE ROCHFORD delivered the judgment of the court. Presiding Justice Hoffman and Justice Delort concurred in the judgment.

ORDER

¶1 Held: We affirmed the judgment in favor of plaintiff on his breach of contract action against his former employer, the Tribune Media Company, finding that he was owed severance payments under the separation agreement. We affirmed the judgment in favor of plaintiff on all of the Tribune’s counterclaims for breach of fiduciary duties, fraud, conspiracy, rescission, and unjust enrichment, finding that the Tribune had failed to prove all the elements thereof. Finally, on plaintiff’s cross- appeal, we affirmed the grant of summary judgment in favor of the Tribune on plaintiff’s claim under the Wage Act, finding that the severance payments were not final compensation subject to the Act. No. 1-19-0859

¶2 Plaintiff, David Giambruno, filed a complaint against his former employer, the Tribune

Media Company (Tribune), for breach of contract and a violation of the Illinois Wage Payment

and Collection Act (Wage Act) (820 ILCS 115/5 (West 2016)), arising out of the Tribune’s refusal

to pay him all the monies allegedly owed him under a separation agreement. The Tribune filed

counterclaims against plaintiff for breach of contract, breach of fiduciary duty, fraud, aiding and

abetting fraud, conspiracy, unjust enrichment, and rescission. The trial court granted summary

judgment in favor of the Tribune on plaintiff’s claim under the Wage Act. After a bench trial, the

court entered judgment in favor of plaintiff on his breach of contract claim and against the Tribune

on all of its counterclaims and awarded plaintiff $603,665.13. The Tribune appeals the court’s

ruling, after the bench trial, in favor of plaintiff on his breach of contract claim and against the

Tribune on all of its counterclaims. Plaintiff cross-appeals the trial court’s grant of summary

judgment in favor of the Tribune on plaintiff’s Wage Act claim. We affirm on the appeal and on

the cross-appeal.

¶3 In count I of its complaint for breach of contract, plaintiff alleged that he was formerly

employed as an “executive” at the Tribune until he entered into a separation agreement with the

Tribune on June 13, 2016. Pursuant to the separation agreement, the Tribune was to pay him a

cash severance in the amount equal to his fiscal year 2015 base salary, and it was also to make bi-

weekly payments to him in the amount of his annual bonus for the fiscal year 2015. The Tribune

was also required to maintain his health, dental, and vision benefits. Plaintiff performed all of his

obligations under the separation agreement, but the Tribune breached the agreement by failing to

make the initial cash severance payment, by failing to make any of the bi-weekly payments, and

by failing to continue his health, dental, and vision benefits.

-2- No. 1-19-0859

¶4 In count II, plaintiff alleged that the Tribune had failed to pay him his final compensation

as required by section 5 of the Wage Act (820 ILCS 115/5 (West 2016)).

¶5 The Tribune filed counterclaims alleging that before starting work with the Tribune in

December 2013, plaintiff worked for Revlon. Upon leaving Revlon for the Tribune, plaintiff

signed a separation agreement with Revlon prohibiting him from soliciting Revlon employees to

join him at the Tribune.

¶6 Soon after starting employment with the Tribune in December 2013, plaintiff hired CSE

Consulting, LLC (CSE), a company that provides computer application and hardware counseling,

to assist him. Some of the CSE consultants who plaintiff wished to employ at the Tribune were, at

the same time, working full-time for Revlon. So as not to alert either Revlon or the Tribune that

he was violating the separation agreement with Revlon by hiring their employees to assist him at

the Tribune, plaintiff engaged in a fraudulent scheme (the scheme to defraud) with CSE’s owner

whereby those CSE consultants who joined him at the Tribune used pseudonyms to hide their true

identities from the Tribune.

¶7 In count I, the Tribune alleged that plaintiff breached his fiduciary duties toward it by

engaging in CSE’s scheme to defraud and by failing to adequately review CSE’s invoices, thereby

enabling CSE and its consultants to overbill the Tribune.

¶8 In count II, the Tribune alleged that plaintiff committed fraudulent misrepresentations and

omissions in order to perpetuate CSE’s scheme to defraud.

¶9 In count III, the Tribune alleged that plaintiff aided and abetted CSE in the scheme to

defraud.

¶ 10 In count IV, the Tribune alleged that plaintiff engaged in a civil conspiracy with CSE, and

with CSE’s owner and employees, to perpetuate the scheme to defraud. -3- No. 1-19-0859

¶ 11 In count V, the Tribune alleged that plaintiff signed a separation agreement with the

Tribune prohibiting him from soliciting Tribune employees to join him in his new company.

Plaintiff breached the separation agreement with the Tribune by soliciting a Tribune employee to

work for him in his new company.

¶ 12 In count VI, the Tribune alleged that the separation agreement it entered into with plaintiff

should be rescinded, and the $155,000 that the Tribune paid to plaintiff under the agreement should

be returned to it, because plaintiff failed to disclose material facts related to his participation in

CSE’s scheme to defraud. The Tribune alleged that it would not have entered into the separation

agreement and made the payments to plaintiff had it known of the scheme.

¶ 13 In count VII, for unjust enrichment, the Tribune alleged that due to plaintiff’s participation

in CSE’s scheme to defraud, it is entitled to the return of the $1.9 million in salary and other

benefits that it paid to plaintiff during his employment, as well as the $155,000 it paid plaintiff

pursuant to the separation agreement.

¶ 14 The cause proceeded to trial. Edward DeSimone testified that he and his wife, Kim Parke,

run CSE. Sometime in 2008 or 2009, CSE was hired to provide consulting services for the

information technology (IT) division of Revlon. Plaintiff was the chief information officer (CIO)

of Revlon, and he directed the projects that CSE consulted on. Plaintiff directed DeSimone to hire

certain persons, including John Wilantowicz, David Williams, Richard Dineen, and Mike

Cannella, to work with CSE in performing IT work for Revlon. CSE did consulting work for

Revlon for about four years.

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