JANSON v. ESTES

CourtDistrict Court, E.D. Pennsylvania
DecidedJuly 22, 2025
Docket2:25-cv-02224
StatusUnknown

This text of JANSON v. ESTES (JANSON v. ESTES) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
JANSON v. ESTES, (E.D. Pa. 2025).

Opinion

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

JOHN JANSON : CIVIL ACTION : v. : NO. 25-2224 : THOMAS ESTES, WATERSHIPBLUE, : LLC :

MEMORANDUM KEARNEY, J. July 22, 2025 A senior employee sued the chief executive officer of his former employer for fraud and violation of the Pennsylvania Wage Payment Collection Law months after the Pennsylvania statutes of limitations expired. The employer’s CEO (chief executive officer) moves to dismiss filed beyond the statute of limitations. The senior employee counters we should equitably toll the statute of limitations because participate in an arbitration proceeding involving his former employer and the parties did not complete the arbitration because his former employer did not pay the arbitration fees. The senior employee argues the former employer and its CEO misled him by not paying arbitration fees when he thought they were paying them and their failure to do so also creates extraordinary circumstances allowing us to toll the statute of limitations. We find the senior employee has not presented evidence of a fraudulent concealment tolling the statute of limitations. We find no evidence the former employer or its CEO affirmatively concealed or misled the departed senior employee regarding being able to sue the CEO in court. The former employer’s alleged failure to pay the arbitration fee did not challenge the validity of senior employee’s wage or fraud claim. We also find the senior employee offers no basis for extending an equitable tolling doctrine for extraordinary circumstances under Pennsylvania law when the senior employee voluntarily chose to bring his claim in arbitration against the CEO when he did not need to and then watched the arbitration lapse without protecting his interests. We grant the CEO’s Motion to partially dismiss the claims for fraud and under the Pennsylvania Wage Payment and Collection law as barred by the statutes of limitations. I. Alleged facts South Carolina citizen WatershipBlue, LLC promotes water transference around the

world.1 Thomas Estes served as its Chief Investment Officer beginning on an unpleaded date and later became its Chief Executive Officer.2 WatershipBlue and Mr. Janson agree to compensation terms including arbitration. WatershipBlue LLC recruited and hired Pennsylvanian John Janson “to help grow the organization as a whole.”3 Mr. Janson signed a Corporate Executive Employment Agreement with WatershipBlue in April 2019.4 CEO Estes is not a party to Mr. Janson’s employment contract. The parties agreed WatershipBlue hired Mr. Janson as “Vice President of Business Development” and an “Executive” of WatershipBlue, WatershipBlue agreed to pay Mr. Janson $15,000 per month with a portion deferred pending company achievements, and WatershipBlue would, among other

things, award Mr. Janson company stock and provide health benefits, life insurance, and disability coverage.5 The parties agreed the term of employment would be four years “with possible extensions upon mutual agreement.”6 The parties agreed as to severance if WatershipBlue terminated Mr. Janson either for cause or without cause. The parties agreed “cause” included the commission of a felony, embezzlement, Act” or “UK Bribery Act.”7 If WatershipBlue terminated Mr. Janson without cause he would be entitled to “all salary, bonus and expense amounts earned or due at [his] final day” in an “immediately payable lump sum” and nine months of severance compensation at his “Base Salary” with “all existing benefits.”8 The parties also agreed WatershipBlue would pay Mr. Janson “all deferred and owed compensation upon separation under applicable wage laws regardless of contractual severance obligations.”9 WatershipBlue and Mr. Janson agreed “a) All disputes will be settled by binding arbitration in accordance with the rules of the American Arbitration Association” and “b) Losing Party pays all costs.”10

Mr. Janson works for WatershipBlue and its successor for two years. Mr. Janson worked for WatershipBlue for two years.11 Mr. Janson performed well and developed substantial investments in WatershipBlue.12 WatershipBlue only paid Mr. Janson a fraction of his monthly salary each month with the balance “deferred.”13 During the term of Mr. Janson’s employment, WatershipBlue transitioned its corporate status “from an S-Corp to an LLC.”14 But its day-to-day operations remained the same.15 WatershipBlue terminates Mr. Janson and does not pay severance. WatershipBlue terminated Mr. Janson’s employment in a Zoom call on April 29, 2021.16 Unpleaded persons told Mr. Janson WatershipBlue terminated him because CEO Estes did not care for Mr. Janson’s management style or business approach.17 WatershipBlue confirmed Mr.

Janson’s termination in an April 30, 2021 letter.18 WatershipBlue claimed Mr. Janson was not transparent or accountable.19 But it also offered Mr. Janson a lesser position as an hourly employee “Advisor” on the “condition that he waive all legal claims to owed compensation.”20 Mr. Janson did not accept the new role because doing so would have extinguished his rights under his original employment agreement.21 The parties ended their employment relationship. WatershipBlue did not pay Mr. Janson his “deferred” compensation from before termination or the severance allegedly owed under the agreement, which totaled more than $415,000 in compensation.22 WatershipBlue told Mr. Janson he was not “entitled to anything because his Employment Agreement was with WatershipBlue Corp., not WatershipBlue, LLC.”23 The parties proceed to the contractual arbitration on all claims and then end up here. Mr. Janson began the arbitration process with the American Arbitration Association on January 25, 2022 consistent with his employment agreement suing for breach of contract and

related contract theories, fraud, and violation of the Pennsylvania wage payment law.24 The Association appointed an arbitrator. The parties litigated for three years allowing them to complete written discovery, conduct depositions, and attempt mediation.25 The Arbitrator scheduled trial to begin on February 18, 2025.26 But, notwithstanding repeated notices from the Association, WatershipBlue and CEO Estes did not pay the required arbitrator and administrative fees for the arbitration trial resulting in the Association terminating the arbitration process on March 7, 2025.27 Mr. Janson sued CEO Estes and WatershipBlue a few weeks later in Pennsylvania state court.28 Mr. Janson alleges claims for breach of contract against WatershipBlue, breach of implied covenant of good faith and fair dealing against WatershipBlue, violations of wage laws against

WatershipBlue and CEO Estes, detrimental reliance against WatershipBlue and CEO Estes, promissory estoppel against WatershipBlue and CEO Estes, unjust enrichment against WatershipBlue and CEO Estes, and common law fraud against WatershipBlue and CEO Estes.29 CEO Estes timely removed from the state court.30 Mr. Janson has still not served WatershipBlue and it is not before us. II. Analysis CEO Estes now moves to dismiss the wage payment and fraud claims against him, arguing (1) the wage law and fraud claims are time-barred; (2) Mr. Janson has not alleged CEO Estes’s involvement; and (3) the gist of the action doctrine precludes such restatement of a contract or promissory estoppel claim into a claim for fraud.31 Mr. Janson opposes, arguing the parties have been in active litigation for years which he concludes tolls the applicable statutes of limitations.32 Mr. Janson further argues CEO Estes raises statute of limitations arguments in bad faith, as CEO Estes and WatershipBlue obstructed earlier arbitration proceedings.33 We find Mr. Janson has not established the statutes of limitations on his wage law and

fraud claims should be tolled after we have afforded him multiple attempts to do so.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
David v. Hall
318 F.3d 343 (First Circuit, 2003)
Warren General Hospital v. Amgen Inc.
643 F.3d 77 (Third Circuit, 2011)
John Kliesh v. Select Portfolio Servicing Inc
527 F. App'x 102 (Third Circuit, 2013)
Applebaum v. State Farm Mutual Automobile Insurance
626 F. Supp. 1299 (M.D. Pennsylvania, 1986)
DaimlerChrysler Corp. v. Commonwealth
885 A.2d 117 (Commonwealth Court of Pennsylvania, 2005)
Wilson v. El-Daief
964 A.2d 354 (Supreme Court of Pennsylvania, 2009)
Altopiedi v. Memorex Telex Corp.
834 F. Supp. 800 (E.D. Pennsylvania, 1993)
In Re Cargill Meat Solutions Wage & Hour Litigation
632 F. Supp. 2d 368 (M.D. Pennsylvania, 2008)
Molineux v. Reed
532 A.2d 792 (Supreme Court of Pennsylvania, 1987)
Christie Leonard v. City of Pittsburgh
570 F. App'x 241 (Third Circuit, 2014)
Getchey v. County of Northumberland
120 F. App'x 895 (Third Circuit, 2005)
Sandra Connelly v. Lane Construction Corp
809 F.3d 780 (Third Circuit, 2016)
Dubose, R. v. Willowcrest Nur. Home, Aplts.
173 A.3d 634 (Supreme Court of Pennsylvania, 2017)
Gutierrez v. Drill Cuttings Disposal Co.
319 F. Supp. 3d 856 (W.D. Texas, 2018)
Patterson v. American Bosch Corp.
914 F.2d 384 (Third Circuit, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
JANSON v. ESTES, Counsel Stack Legal Research, https://law.counselstack.com/opinion/janson-v-estes-paed-2025.