McQueen v. True Partners Consulting, LLC

28 Mass. L. Rptr. 411
CourtMassachusetts Superior Court
DecidedJanuary 7, 2011
DocketNo. 0900657
StatusPublished
Cited by3 cases

This text of 28 Mass. L. Rptr. 411 (McQueen v. True Partners Consulting, LLC) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McQueen v. True Partners Consulting, LLC, 28 Mass. L. Rptr. 411 (Mass. Ct. App. 2011).

Opinion

Troy, Paul E., J.

Plaintiffs, Thomas McQueen (“McQueen”) and Joel Gross (“Gross”), brought this action against Defendants True Partners Consulting LLC (“TPC”), True Partners Consulting Holdings LLC (“TPCH”) and Cary D. McMillan (“McMillan”) for issues arising from their termination as Managing Directors of TPC effective January 31,2009. Each plaintiff states eight identical claims summarized as follows:

Counts I and IX: Wage Act violation for failure to pay a bonus allegedly owed as of Plaintiffs’ termination date.

Counts II and X: Wage Act violation for failure to pay Plaintiffs’ “wages” allegedly earned after Plaintiffs’ termination.

Counts III and XI: Claim of unlawful retaliation under the Wage Act based upon Plaintiffs’ alleged demand for wages owed.

Counts IV and XII: Breach of contract claim based on TPC’s alleged failure to pay Plaintiffs compensation and benefits owed under their Managing Director Agreements with TPC.

Counts v. and XIII: Breach of contract claim based on Defendants’ alleged breach of a promise to repay capital contributions to Plaintiffs.

Counts VI and XIV: Breach of contract claim based upon TPC’s alleged failure to pay compensation and [412]*412benefits owed to Plaintiffs under an unspecified “Employment Contract.”

Counts VII and XV: Quantum meruit claim for the benefit and value of services that Plaintiffs allegedly rendered to TPC after their termination.

Counts VIII and XVI: Claim for breach of the implied covenant of good faith and fair dealing based upon TPC’s alleged termination of Plaintiffs “in an effort to avoid its financial obligations in the form of wages, bonuses, and other compensation.”

Defendants moved for summary judgment on all claims. For the reasons discussed below, Defendants’ Motion for Summary Judgment is DENIED as to counts Vil and XV and DENIED in part as to counts VIII and XVI to the extent that they are based on Defendants withholding payment. The court also DENIES summary judgment in part as to counts IV and XII to the extent that they are based on the late January draw payment. Defendants’ Motion for Summary Judgment is ALLOWED as to all other counts, including the remaining grounds of counts IV and XII not based on the late January draw payment.

BACKGROUND

The following facts are undisputed unless otherwise noted. TPC hired Plaintiffs in May 2007, and Plaintiffs each signed a Managing Director Agreement (“the Agreement”) with TPC and TPCH. Pursuant to the terms of the Agreement, Plaintiffs each purchased Class C Units in TPCH for $115,000. In consideration for services performed as Managing Directors, Plaintiffs each received a monthly draw payment from TPC to be distributed on the 7th of each month for work performed the previous month. Pursuant to Section 6 of the Agreement, Plaintiffs were eligible for an annual discretionary bonus at McMillan’s discretion. All Managing Directors were responsible for billing their clients and Plaintiffs sometimes “pre-billed” clients for work not yet performed.

On January 19, 2009, Plaintiffs met with John V. Aksak (“Aksak”), TPC’s Northeast Managing Director and Plaintiffs’ supervisor, and McMillan, who presented Plaintiffs with two options: 1) to remain with TPC under certain new conditions; or 2) to separate from TPC under certain separation terms. On January 21, 2009, Timothy L. Costello (“Costello"), TPC’s Chief Financial Officer, sent Plaintiffs an email providing more specifics on the first option. On January 28, 2009, Aksak sent Plaintiffs an email providing more detail on both options. On January 29, 2009, McQueen sent an email (copying Gross) to Mark Hellner (“Hellner”), TPC’s General Counsel at the time, asking for “the separation agreement you have drafted at McMillan’s request.” On January 30, 2009, TPC forwarded the separation agreements, which Plaintiffs never accepted. TPC terminated Plaintiffs’ employment under the Agreement on January 31, 2009. Plaintiffs retained counsel, but the parties continued to discuss terms of separation into February 2009.

On February 6, 2009, McMillan sent Plaintiffs an email expressing dissatisfaction with Plaintiffs’ January billings and suggesting that he may withhold the January draw payments. On February 9, 2009, McQueen responded via email, attaching an electronic document which addressed McMillan’s concerns and proposed certain separation terms. Approximately one hour later, McMillan replied with an email stating only “Thank you.” On February 10, 2009, Hellner sent Plaintiffs’ counsel an email detailing new proposed separation terms. On February 11, 2009, Hellner sent Plaintiffs’ counsel another email outlining modified proposal terms, which included payment of Plaintiffs’ owed January 2009 draws “assuming we can reach a settlement within the next few days.”

Plaintiffs were timely paid all draws until the January 2009 draw, which was due February 7, 2009. Plaintiffs did not receive the January draw on February 7, 2009, but received it several months later. Plaintiffs received a bonus payment for the 2007 year at the end of the 2007/2008 fiscal year and received a second bonus payment also for the 2007 year several months after beginning this action. The separation agreement drafted by Hellner but never accepted by Plaintiffs, and the parties’ negotiations, contemplated post-termination assistance by Plaintiffs on behalf of TPC. Gross submitted timesheets for Plaintiffs showing that Gross performed work in February for clients Iron Mountain, GPX, and Specialized Technology Resources and that McQueen performed work in February for clients GPX, Specialized Technology Resources, PerkinElmer, Inc., and TPI Composites. The parties dispute the extent of this work, but they agree that Plaintiffs’ February efforts led to TPC receiving a $9,850 reduction in a credit balance given to GPX in 2008.

DISCUSSION

Summary judgment shall be granted where there are no genuine issues as to any material fact and the moving party is entitled to judgment as a matter of law. Mass.R.Civ.P. 56(c); Cassesso v. Commissioner of Correction, 390 Mass. 419, 422 (1983); Community Nat’l Bank v. Dawes, 369 Mass. 550, 553 (1976). The moving party bears the burden of affirmatively demonstrating both the absence of a triable issue and that the summary judgment record entitles the moving party to judgment as a matter of law. Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989). The moving party may satisfy this burden either by submitting affirmative evidence that negates an essential element of the opposing party’s case or by demonstrating that the opposing party has no reasonable expectation of proving an essential element of his case at trial. Flesner v. Technical Communications Corp., 410 Mass. 805, 809 (1991). The opposing party cannot rest on his or her pleadings and mere assertions of disputed facts to defeat the motion for summary judgment. LaLonde v. Eissner, 405 Mass. 207, 209 (1989).

[413]*413I. WAGE ACT CLAIMS (COUNTS I, II, III, IX, X, AND XQ

Under the Wage Act (“the Act”), an employee whose employment is terminated must be paid earned wages in full on the day of discharge.3 An employer who violates the act is subject to possible civil and criminal penalties, injunctive relief, treble damages, and attorneys fees and costs. G.L.c. 149, §§27C, 148, 150. The general purpose of the statute is “to assure that employees are paid their wages on a weekly basis,”

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Cite This Page — Counsel Stack

Bluebook (online)
28 Mass. L. Rptr. 411, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcqueen-v-true-partners-consulting-llc-masssuperct-2011.