Meaney v. Connecticut Hospital Ass'n

735 A.2d 813, 250 Conn. 500, 1999 Conn. LEXIS 312
CourtSupreme Court of Connecticut
DecidedAugust 31, 1999
DocketSC 15895
StatusPublished
Cited by66 cases

This text of 735 A.2d 813 (Meaney v. Connecticut Hospital Ass'n) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meaney v. Connecticut Hospital Ass'n, 735 A.2d 813, 250 Conn. 500, 1999 Conn. LEXIS 312 (Colo. 1999).

Opinions

Opinion

PETERS, J.

The dispositive issue in this appeal is whether, as a result of unconsummated negotiations for incentive compensation to supplement the salary and benefits provided by an enforceable employment contract, an employee may recover damages pursuant to a claim in restitution for unjust enrichment. The issue is not whether the employee has a contract claim for the payment of a reasonable incentive bonus, but whether, in the absence of such a contract, the employee has a right to recover the amount by which his services benefited his employer. This is an issue of first impression for the appellate courts of this state. We conclude that the employee does not have a right of recovery under the circumstances of this case.

The plaintiff, Edward F. Meaney III, brought an action in seven counts against four defendants. The two corporate defendants are the Connecticut Hospital Association, Inc. (Association), and CHA Insurance Services, [502]*502Inc. (CHAIS), an affiliate of the Association that is engaged in the business of selling insurance. The plaintiff also named as defendants two individuals, Dennis P. May and Donald A. Berkowitz, who were the president and a senior employee, respectively, of the Association and officers of several of its affiliates.

At trial, the plaintiffs principal allegations were that the individual defendants intentionally had made misrepresentations that had induced him to agree to the terms of a written employment contract that did not include incentive compensation1 and that the corporate defendants wrongfully had discharged him in breach of his contract and in violation of public policy.2 The plaintiff was able to prove none of these allegations.3 He did not allege that the defendants, in breach of their contract obligations to him, had failed to pay him incentive compensation in addition to his designated salary and benefits.

The plaintiffs final allegation, in count seven of the complaint, was that, regardless of his other claims for recovery, he was entitled to recover damages from the corporate defendants for unjust enrichment premised upon an implied promise to pay the plaintiff a fair value for the services he had rendered. There is no question [503]*503that the plaintiff was paid the salary and benefits to which he was entitled pursuant to his employment contract. The plaintiff claimed that, in addition, he was entitled to recover such fair value because the defendants had agreed to supplement his salary with incentive compensation and had failed to do so. On this count, the jury awarded the plaintiff $710,901.

The trial court denied the motion of the corporate defendants to set aside the jury verdict on count seven, for judgment notwithstanding the verdict, for a new trial and for remittitur of damages. The defendants have appealed from the judgment rendered in favor of the plaintiff on this count.4 We reverse the judgment of the trial court.

I

Many of the facts are undisputed. The plaintiff is a licensed insurance agent who began his employment with the defendants on January 15, 1991. In accordance with a letter that Berkowitz sent on December 17,1990, and that the plaintiff signed, he was hired as the director of insurance services at CHAIS at an annual salary of $65,000 plus fringe benefits. The salary was $10,000 more than the plaintiff had been earning at his prior position, and $21,000 more than he had been earning one year earlier. The letter referred to an enclosed employment application, which the plaintiff also signed. The application described his employment as being “at-will” and expressly superseded any oral representations that might have accompanied the plaintiffs employment.

Although the plaintiffs initial employment contract did not contain any provision for bonuses or incentive [504]*504pay, he had expressed an interest in that form of compensation from the outset. The plaintiff was hired to improve the profitability of CHAIS, an Association affiliate that, since 1981, had operated a workers’ compensation trust (trust) that offered workers’ compensation insurance to Association member hospitals. The plaintiff expected to be paid a bonus in addition to his salary, not initially, but at some undefined subsequent date when he had succeeded in turning the trust around.

The Association management recognized the value of the plaintiffs entrepreneurial contributions in making the trust more profitable than it had been in the years immediately preceding his employment. In 1991, six months after he had started to work, the defendants increased his salary by $4000; in 1993, the defendants raised his salary by an additional $2800. As a result, before the plaintiffs discharge, he was earning $72,800 a year, a sum considerably in excess of any salary that he had earned previously.

The Association’s management also recognized that the plaintiffs services warranted consideration of incentive compensation for him. During 1992, the second year of the plaintiffs employment, under his leadership, the operation of the CHAIS trust was becoming financially more successful. In the spring of that year, Berkowitz wrote May: “I do think we need to sit down with [the plaintiff] to discuss some incentive program. ... [H]e is a most valuable and productive employee and we at [the Association] should do everything we can, within reason, to retain him.” Later in 1992, May tendered to the plaintiff a proposal for incentive pay, which would have increased the plaintiffs annual compensation from salary and commissions to approximately $100,000, starting January 1, 1993. The plaintiff did not accept this proposal. In January, 1993, the plaintiff tendered an alternate proposal for his future compensation, under which he would immediately have [505]*505received an increase in his base salary, without commission, to $110,000, and would in addition have become eligible for commissions, not for earnings stemming from CHAIS’ trust business, but from other Association enteiprises with which he had become involved. Like the proposal tendered by the defendants, the plaintiffs proposed incentive pay plan would have become effective on January 1, 1993. The plaintiffs proposal also included a number of other suggestions about the operations of CHAIS and the possible terms of a noncompete clause that was not then a part of his employment contract. The defendants did not accept the plaintiffs proposal.

In the early months of 1993, the parties continued to discuss their respective proposals for incentive pay for the plaintiff. While the parties were engaged in these discussions, the defendants increased the plaintiffs salary by $2800. Having come to no agreement, the parties decided to ask an outside consultant to evaluate the compensation picture, without binding themselves to accept whatever proposal the consultant might make. Although the plaintiff suggested a number of possible consultants, the defendants chose instead to engage the services of Kenn R. Allen, the president of the Meadowbrook Agency in Detroit, Michigan.

Allen’s report, issued on May 9,1993, was very critical of the plaintiffs work for CHAIS. In the report, Allen found fault with the plaintiffs management style and attributed his financial success with the trust to “competitive pricing.” This negative report was a contributing factor in the defendants’ termination of the plaintiffs employment on May 27, 1993.

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

Related

Pizziconi v. Gray
D. Connecticut, 2025
Michel v. Yale University
110 F.4th 551 (Second Circuit, 2024)
REI Holdings, LLC v. Marcus
D. Connecticut, 2021
Conn. Gen. Life Ins. Co. v. BioHealth Labs., Inc.
988 F.3d 127 (Second Circuit, 2021)
Horwitt v. Sarroff
D. Connecticut, 2020
Reclaimant Corp. v. Deutsch
211 A.3d 976 (Supreme Court of Connecticut, 2019)
Ashmore v. Hartford Hospital
208 A.3d 256 (Supreme Court of Connecticut, 2019)
Richards v. Direct Energy Servs., LLC
915 F.3d 88 (Second Circuit, 2019)
In re Gen. Motors LLC
339 F. Supp. 3d 262 (S.D. Illinois, 2018)
Edwards v. North American Power & Gas, LLC
120 F. Supp. 3d 132 (D. Connecticut, 2015)
Richards v. Direct Energy Services, LLC
120 F. Supp. 3d 148 (D. Connecticut, 2015)
Connecticut Light & Power Co. v. Proctor
Connecticut Appellate Court, 2015
Kelley v. FIVE S GROUP, LLC
45 A.3d 647 (Connecticut Appellate Court, 2012)
Schirmer v. Souza
12 A.3d 1048 (Connecticut Appellate Court, 2011)
Joseph F. Cooper v. PSI Group, Inc.
364 F. App'x 681 (Second Circuit, 2010)
Town of New Hartford v. Connecticut Resources Recovery Authority
970 A.2d 592 (Supreme Court of Connecticut, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
735 A.2d 813, 250 Conn. 500, 1999 Conn. LEXIS 312, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meaney-v-connecticut-hospital-assn-conn-1999.