Magnotti v. Crossroads Healthcare Management, LLC

126 F. Supp. 3d 301, 2015 U.S. Dist. LEXIS 118194, 2015 WL 5173528
CourtDistrict Court, E.D. New York
DecidedSeptember 3, 2015
DocketNo. 14-CV-6679 (ILG)(RML)
StatusPublished
Cited by6 cases

This text of 126 F. Supp. 3d 301 (Magnotti v. Crossroads Healthcare Management, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Magnotti v. Crossroads Healthcare Management, LLC, 126 F. Supp. 3d 301, 2015 U.S. Dist. LEXIS 118194, 2015 WL 5173528 (E.D.N.Y. 2015).

Opinion

MEMORANDUM & ORDER

GLASSER, Senior District Judge:

Plaintiff Louis Magnotti brings this action against defendants Crossroads Healthcare Management, LLC (“Crossroads”), ProScript Pharmacy Management, LLC (“ProScript”), Michael DeBartolome, Patrick Paolucci, Barry Marzigliano, and several unknown companies and individuals. At the heart of plaintiffs claims are two allegations of unlawful behavior: first, defendants refused to permit him to return to work on a full-time basis after he underwent spinal surgery, and second, after he resigned in protest of this decision, defendants denied him money to which he was entitled under a profit-sharing agreement between the parties. These denials, plaintiff claims, violated the Americans with Disabilities Act (“ADA”), 42 U.S.C. § 12101 et seq.; the New York State Human Rights Law (“NYSHRL”), N.Y. Exec. Law § 290 et seq.; the New York City Human Rights Law (“NYCHRL”), N.Y.C. Admin. Code § 8-101 et seq., the whistle-blower provision of the New York Labor Law (“NYLL”), N.Y. Lab. Law § 740(2)(c); and common law. Defendants now move to dismiss plaintiffs Amended Complaint for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6). For the following reasons, the motion is GRANTED in part and DENIED in part. Plaintiff is given leave to file a Second Amended Complaint that abides by the rulings set forth herein.

BACKGROUND

Unless otherwise noted, the following facts are drawn from plaintiffs Amended Complaint (Dkt. No. 10) and its attachments, and are accepted as true for the purposes of deciding this motion. ProS-cript is a “closed-door” pharmacy for union members. Crossroads is a healthcare management company that services health plans for union members and their families. Crossroads is the managing partner of ProScript, and the two companies operate out of the same office in Staten Island. At all relevant times, DeBartolome was the president and managing member of ProScript as well as the president and managing member of Crossroads; Paolucci was an officer and managing member of ProScript as well as an officer of Crossroads; and Marzigliano was the chief financial officer of Crossroads as well as an officer and member of ProScript.

[307]*307Plaintiff is a licensed New York State pharmacist. In November of 2004, he began working part-time as ProScript’s supervising pharmacist. In 2005, he assumed a full-time schedule to accommodate ProScript’s growth. He was paid as a salaried employee. In the summer of 2006, DeBartolome, with the knowledge and consent of the other defendants, invited plaintiff to join in an agreement to share in ProScript’s profits. Under this agreement, DeBartolome said, plaintiff would receive distributions of 15% of ProScript’s profits for the rest of his life, even if he no longer worked for the pharmacy.

Plaintiff, Marzigliano and DeBartolome (in his capacity as president of Crossroads) signed ProScript’s “Operating Agreement” on December 15, 2006. That agreement provided for two types of membership: “Class I” members, who were entitled to 100 votes on company affairs as a class, and “Class II” members, who were entitled to zero votes. Plaintiff and Marzigli-ano became Class II members of ProS-cript. The sole Class I member, and thus the de facto holder of all voting power, was Crossroads. The agreement entitled plaintiff to distributions of 15% of ProS-cript’s net profits “[bjefore a member’s withdrawal and before the winding up of the Company,” subject to the caveat that “[t]he Company may not make any distribution that will impair [its] ability ... to pay its debts and obligations as they mature.” Am. Compl., Ex. 2, Art. B.12. From December of 2006 until December of 2018, plaintiff received distributions from ProScript in accordance with the agreement.

In April of 2013, plaintiffs ability to walk began to deteriorate, a fact noticed by DeBartolome, Paolucci, and Marzigli-ano. Plaintiff was initially diagnosed with a lower back problem, referred to an orthopedic surgeon and treated with physical therapy two to three times a week. Defendants were aware of plaintiffs diagnosis and ongoing treatment. In August of 2013, with his condition worsening, plaintiff went to see a chiropractor who ordered a magnetic resonance imaging (“MRI”) exam that plaintiff underwent in September of 2013. That MRI revealed compression on plaintiffs spinal cord and bone spurs around his spinal column near his neck. Plaintiff returned to his orthopedic surgeon, who recommended he undergo surgery to remove the bone spurs, fuse several of his cervical and thoracic vertebrae together, and insert rods into his spine to prevent paralysis. After seeking a second opinion which confirmed this course of treatment, plaintiff requested six to eight weeks of medical leave which defendants approved on the basis of necessity. Defendants hired Hank Buncek, another pharmacist, to fill in for plaintiff temporarily.

Plaintiff began his medical leave on September 19, 2013 and underwent surgery to remove the bone spurs and fuse his vertebrae on September 26, 2013. He remained in inpatient rehabilitation until November 1, 2013, and, upon his discharge, continued with a course of in-home therapy until December 10, 2013. Throughout this period of time, plaintiff communicated repeatedly with pharmacy technicians at ProScript to address questions Buncek left unanswered. He also spoke with DeBar-tolome and Paolucci to update them on his recovery. On December 30, 2013, plaintiffs orthopedic surgeon cleared him to return to work without limitations. Though plaintiff still experiences back problems, has difficulty walking or standing, and requires the assistance of a cane, he is capable of performing his prior job as it does not require him to stand or walk for prolonged periods of time.

[308]*308In early January of 2014, plaintiff informed DeBartolome that he was ready to return to work full-time. DeBartolome refused to permit plaintiff to return full-time but instead allowed him to work only two or three days a week, with Buneek working when plaintiff did not. Later that month, plaintiff again requested to return to work full-time, and was informed by DeBartolome that he could resume a full schedule in March of 2014. After defendants terminated two pharmacy technicians for their poor performance (which plaintiff attributes to Buncek’s supervisory negligence), plaintiff again requested to resume working full-time on February 3, 2014. DeBartolome responded by saying “Hold off on that. We have to talk.”

The next day, February 4, 2014, DeBar-tolome, Paolucci and Marzigliano called plaintiff at home. DeBartolome informed plaintiff that he would be working a three-day week for the foreseeable future. Plaintiff objected, noting that this schedule would violate a New York regulation requiring supervising pharmacists to work full-time. DeBartolome, Paolucci and Marzigliano responded that the decision was final. Plaintiff wrote a letter to De-Bartolome and Paolucci that same day, stating that, as a result of the “insulting and degrading conference call,” he was resigning his position as supervising pharmacist, effective February 18, 2014.

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Cite This Page — Counsel Stack

Bluebook (online)
126 F. Supp. 3d 301, 2015 U.S. Dist. LEXIS 118194, 2015 WL 5173528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/magnotti-v-crossroads-healthcare-management-llc-nyed-2015.