Lamb v. Headcount Management

CourtDistrict Court, D. Utah
DecidedJuly 29, 2022
Docket1:19-cv-00070
StatusUnknown

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

Bluebook
Lamb v. Headcount Management, (D. Utah 2022).

Opinion

THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH

MARCUS LAMB, FINDINGS OF FACT AND Plaintiff, CONCLUSIONS OF LAW

v. Case No. 1:19-cv-70 HEADCOUNT MANAGEMENT, INC., Howard C. Nielson, Jr. Defendant. United States District Judge

Marcus Lamb sued Headcount Management, Inc., challenging the late start and early termination of his employment contract. Although Mr. Lamb initially asserted other claims as well, see Dkt. No. 8-1 (Verified Complaint), the only claims that he continues to press are claims for breach of contract, breach of the implied covenant of good faith and fair dealing, fraudulent misrepresentation, and negligent misrepresentation, see Tr. at 15:11–16:10. Motions practice failed to resolve the case and the court held a two-day bench trial on March 10, 2022, and March 11, 2022, with closing arguments on June 27, 2022. After careful consideration of the evidence and argument presented at trial and in the parties’ pre- and post-trial briefing, the court enters the following findings of fact and conclusions of law. Based on these findings and conclusions, the court will enter judgment for Headcount on all of Mr. Lamb’s remaining claims. FINDINGS OF FACT 1. Mr. Lamb is a citizen of Utah. See Dkt. No. 2 ¶ 6. He resided in Weber County when the events at issue in this case occurred. See Verified Complaint ¶ 1. 2. Headcount is a corporation that provides payroll and other services. See Tr. at 110:20–23. Headcount is incorporated in New York, and its principal place of business is in Connecticut. See Dkt. No. 4 ¶ 3. 3. On July 1, 2010, Headcount entered into a Master Services Agreement with

GreenFoot Technologies. See Pl. Ex. 32. 4. Under the express terms of that agreement, Headcount “agree[d] to employ certain workers assigned by [GreenFoot] to provide services directly for/at customer companies of [GreenFoot].” Id. § 2.1. In turn, GreenFoot was obligated to “use its best efforts to successfully source, screen and otherwise identify candidates to satisfy the requirements of its customers.” Id. § 3.2. The plain language of these provisions is consistent with testimony provided by Headcount’s president, Mark Arrow, who testified that Headcount had “nothing to do with the actual finding of candidates,” Tr. at 115:16–23, and GreenFoot’s owner, Douglas Ott, who testified that “all of the contract employees” that the company “place[s] at . . . client sites are indeed actual employees of Headcount Management,” id. at 31:15–17.

5. The Master Services Agreement further provided that once GreenFoot selected a candidate to provide services for one of its clients, Headcount would act “[a]s the employer of record for said workers.” Pl. Ex. 32 § 2.1. In performing that function, Headcount was required to (1) “process payment, remit all required taxes (federal, state and local), and withhold any wage garnishments or other payroll deductions as required by law,” id.; (2) “provide general liability, workers compensation, unemployment, and other required insurances” for the covered employees, id. § 2.2; and (3) “process all unemployment claims, workers compensation claims, year-end wage statements (W-2s), employment verifications and other employment related documents as required for workers employed by HEADCOUNT,” id. § 2.3. 6. After a worker had been hired by Headcount and assigned by GreenFoot to provide services to one of GreenFoot’s customers, Headcount was to “invoice customers directly for any services provided by [those] employees of Headcount, at the bill rate set” by GreenFoot. Id. § 4.1. When it received payment for those invoices, Headcount was then obligated to “deduct

wages, taxes, fees, advances etc” at the rates set forth in the Agreement and pay GreenFoot “the balance of profits . . . in the form of a Recruiter Profit Check within five (5) business days of receipt of payment.” Id. 7. The Agreement expressly stated that none of its provisions “shall be construed to establish or constitute that either party is an agent, employee, partner, joint venture or associate of the other,” and that Headcount and GreenFoot entered the agreement “as Independent Contractors and do not intend any other relationship to be created by this Agreement.” Id. § 1.1. It also included the following limiting language: [GreenFoot] shall not have the power, and shall not represent or imply that it has the power, to obligate HEADCOUNT to any expenses other than those expressly agreed to in writing by HEADCOUNT. [GreenFoot] shall notify workers that they shall not have the power, and shall not represent or imply that they have the power, to obligate HEADCOUNT to any expenses other than those expressly agreed to in writing by HEADCOUNT.

Id. § 1.2. 8. The Idaho National Laboratory, which the parties refer to as INL, is located in Idaho Falls, Idaho. It is run by the United States Department of Energy and is “the nation’s leading center for nuclear energy research and development.” ABOUT IDAHO NATIONAL LABORATORY, https://inl.gov/about-inl (last visited July 29, 2022). 9. Around January 18, 2018, GreenFoot became aware of an opportunity to place an individual as a contractor at INL. Mr. Ott testified that he learned of the opportunity through a phone call from Jim Lively, a manager at INL. See Tr. 40:2–14. 10. At that time GreenFoot had two employees: Mr. Ott and Jay McKnight. See id. at 31:1–5. Mr. Ott testified that Mr. McKnight’s job was to be the “point of contact for all of the contractors.” Id. at 57:18–20. 11. On January 18, 2018, Mr. McKnight sent Mr. Lamb a direct message through

LinkedIn informing him of “a client in [his] area” that was “looking to fill a position of JIRA Administrator.” Pl. Ex. 1. Mr. Ott testified that at that point, Mr. McKnight began acting as GreenFoot’s “contact for Mr. Lamb.” Tr. at 57:8–10. 12. Mr. Lamb testified that he discussed the position with Mr. McKnight by telephone shortly thereafter. See id. at 156:2–12. Mr. Lamb testified that during that call, Mr. McKnight explained that the position would require Mr. Lamb to work in person at INL during “a three- month acclimation period,” but that after that period he “would be able to work remotely” if he chose to do so.1 Id. at 152:24–153:7. Mr. Lamb testified that Mr. McKnight also represented that the job was for a one-year term. See id. at 159:7–12. 13. Mr. Lamb testified that Mr. McKnight then requested a copy of Mr. Lamb’s

resume, and the two of them had a follow-up conversation two days later in which Mr. Lamb expressed his salary expectations. See id. at 157:12–24. Mr. Lamb testified that Mr. McKnight told him that the salary he had requested “seemed doable,” but that Mr. McKnight could not confirm this until Mr. Lamb was formally selected for the position. Id. at 157:25–158:4. 14. Mr. Ott testified that GreenFoot did not require Mr. Lamb or Mr. McKnight to complete any paperwork regarding these discussions. See id. at 76:24–77:1.

1 Because Mr. McKnight did not testify in this case, Headcount argues that any evidence of Mr. McKnight’s statements to Mr. Lamb is inadmissible hearsay. See Tr. at 8:7–24. Plaintiff argues that these statements are admissible under Federal Rule of Evidence 801(D)(2) because Mr. McKnight was acting as Headcount’s agent when he made them. See id. at 14:2–19. For the reasons explained later, the court does not resolve this issue. 15. Five days later, Mr. Lamb interviewed with INL staff. He testified that Mr. McKnight called him four days later to offer him the position formally. 16. On January 30, 2018, Mr. Lamb sent an email to Mr. McKnight stating that he was “thrilled” to “formally accept” the “job offer.” Pl. Ex. 24. His email included the following

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Lamb v. Headcount Management, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamb-v-headcount-management-utd-2022.