Hughes, Sr. v. Centurum, Inc.

CourtDistrict Court, M.D. Florida
DecidedJuly 18, 2022
Docket2:21-cv-00820
StatusUnknown

This text of Hughes, Sr. v. Centurum, Inc. (Hughes, Sr. v. Centurum, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hughes, Sr. v. Centurum, Inc., (M.D. Fla. 2022).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA FORT MYERS DIVISION

JEFFREY HUGHES, Sr.,

Plaintiff,

v. Case No. 2:21-cv-820-JLB-KCD

CENTURUM, INC.,

Defendant. / ORDER Defendant Centurum, Inc. (“Centurum”) moves to dismiss Plaintiff Jeffrey Hughes, Sr.’s amended complaint. (Doc. 22.) Upon careful review, the motion is GRANTED in part, and Mr. Hughes’s amended complaint is DISMISSED with leave to amend. BACKGROUND Centurum is a private company that “delivers end-to-end life cycle solutions for Defense, Homeland Security, and other Federal Agencies.” (Doc. 20 ¶ 6.)1 Mr. Hughes worked for Centurum for thirty-sixty years until his termination in

1 “At the motion to dismiss stage, all well-pleaded facts are accepted as true, and the reasonable inferences therefrom are construed in the light most favorable to the plaintiff.” Bryant v. Avado Brands, Inc., 187 F.3d 1271, 1273 n.1 (11th Cir. 1999) (citation omitted). A complaint must contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). Under this standard, the complaint “must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Id. at 678. September 2021. (Id. ¶¶ 5, 7, 25.) At the time of his termination, Mr. Hughes was Centurum’s Chief Financial Officer (“CFO”). (Id. ¶¶ 5, 7.) In 2015, Mr. Hughes was diagnosed with an essential tremor, and in 2018, he

learned that he would require surgery. (Id. ¶ 9.) Centurum’s Chief Executive Officer (“CEO”) requested that Mr. Hughes send him information about the procedure. (Id. ¶ 10.) The procedure did not correct the essential tremor, and Mr. Hughes was diagnosed with Parkinson’s Disease in October 2018. (Id. ¶ 11.) Centurum’s Human Resources and Treasury Manager, Louise Sundermier, had access to Mr. Hughes’s medical documents, and “continually asked” Centurum

and Mr. Hughes’s insurance broker about Mr. Hughes’s cognitive state. (Id. ¶ 13.) Sometime around January 8, 2021, Ms. Sundermier conveyed Mr. Hughes’s medical diagnosis to Centurum’s certified public accountant (“CPA”) and Executive Management, including its CEO, “who began questioning [Mr. Hughes] about his mental state, despite [Mr. Hughes] having neurological impairments that affect life functions such as movement and lifting, but which did not rise to the level of an impairment that adversely affected his ability to perform all the essential functions

of his position.” (Id.) Centurum terminated Mr. Hughes from his position as CFO on September 3, 2021. (Id. ¶ 25.) Also prior to Mr. Hughes’s termination, in April 2020 Centurum was approved for a Paycheck Protection Program (“PPP”) loan in the amount of $4,875,008. (Id. ¶¶ 14–15.) In October 2020, Centurum applied for forgiveness of the loan and, in June 2021, Centurum received forgiveness in the amount of $3,193,218. (Id. ¶ 16.) According to Mr. Hughes, “[b]ecause [Centurum] is a federal government contractor, its receipt of PPP loan forgiveness had to be accounted for properly under the Defense Contract Audit Agency [(“DCAA”)] and Defense

Contract Management Agency [(“DCMA”)] published guidance and regulations.” (Id. ¶ 17.) He further alleges that Centurum’s CEO “devised a plan to fraudulently misrepresent to the government that the $3,193,218 was not made forgivable and/or was spent on items not covered by [Centurum’s] government contracts in order to try to illegally retain $3,193,218 that was legally required to be returned to the government by representing it was a non-refundable grant under the Federal

Acquisition Regulations,” and “issued a directive that no one notify [the DCMA] of the loan forgiveness.” (Id. ¶¶ 19–20.) As Centurum’s CFO, Mr. Hughes was “tasked by the CEO to execute the fraud on the government, but flatly refused to do so.” (Id. ¶ 20.) Mr. Hughes told the CEO that he would not lie on a DCAA report due on August 9, 2021, and that he would file a report that complied with applicable laws. (Id.) Centurum’s CPA called Mr. Hughes on August 6, 2021 to confirm that the CEO instructed her to delete any

reference to the loan forgiveness from the 2020 certified financial statement notes. (Id.) On August 8, 2021, Mr. Hughes was placed on administrative leave with restricted access to company documents and IT systems. (Id. ¶ 21.) As noted, he was terminated less than a month later, on September 3, 2021. (Id. ¶ 25.) “[I]n the weeks leading up to his administrative leave and termination,” Mr. Hughes also complained “to his superiors” of various other instances of “misconduct.” (Id. ¶¶ 23– 24.) Following Mr. Hughes’s termination, he and Centurum discussed settlement

of any claims either party might have in exchange for, among other things, two months’ pay as severance. (Id. ¶¶ 27–29.) The settlement discussions occurred over email and phone, and no written settlement agreement was ever signed by Mr. Hughes. (Id. ¶¶ 27–31; Doc. 22-2–Doc. 22-8.) Mr. Hughes filed this lawsuit on November 4, 2021, raising three claims against Centurum: retaliation in violation of the False Claims Act (“FCA”), 31

U.S.C. § 3730(h) (Count I); retaliation in violation of Florida’s Private Whistleblower Act (“FWA”), Fla. Stat. § 448.102 (Count II); and discrimination in violation of the Rehabilitation Act (Count III). (Docs. 1, 20.) On November 9, 2021, Centurum sued Mr. Hughes in Florida state court, asserting claims of conversion and breach of the duties of loyalty and care, and seeking declaratory judgment to enforce a purported settlement agreement between the parties. Centurum, Inc. v. Hughes, Sr., No. 50-2021-CA-012461 (Fla. 15th Cir. Ct. Nov. 9, 2021); (Doc. 20 ¶ 32;

Doc. 22-1.) Centurum now moves to dismiss Mr. Hughes’s amended complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). (Doc. 22.) Centurum first contends that the parties reached a settlement agreement in which Mr. Hughes waived the claims he raises in this action. (Id. at 14–17.) Centurum next argues that, even if Mr. Hughes has not waived his claims, his allegations do not state a claim under the FCA, FWA, or Rehabilitation Act. (Id. at 18–26.) Mr. Hughes responded in opposition (Doc. 41), Centurum filed a reply (Doc. 49), and Mr. Hughes filed a sur- reply (Doc. 55).

DISCUSSION The purported settlement agreement between the parties is not, at this stage of the litigation, a basis to dismiss the action. However, Mr. Hughes’s claims are due to be dismissed with leave to amend in light of the pleading deficiencies noted below. I. The purported settlement agreement is not, at this stage of the litigation, a basis to dismiss the action.

Centurum contends that, through their email correspondence and telephone conversations—despite the absence of a signed settlement agreement—the parties reached a settlement agreement whereby Mr. Hughes waived his claims. (Doc. 22 at 14–17.) Accepting the factual allegations as true and construing all reasonable inferences in Mr. Hughes’s favor, the Court finds that such a determination is unsupported, at least at this stage in the litigation.

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