Mel T. Romero, V Secret Gardens Of Washington, Llc, Etal

Court of Appeals of Washington·Decided June 29, 2021·No. 53969-1·Unpublished

Opinion

Filed

Washington State

Court of Appeals

Division Two

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON June 29, 2021

DIVISION II

MEL T. ROMERO, No. 53969-1-II Appellant,

v.

SECRET GARDENS OF WASHINGTON, UNPUBLISHED OPINION LLC; WILLIAM DELANEY, CHRISTY KLEIN,

Respondents,

PETER WILSON, JOHN WILLIAM HUGHES, KYLE DELANEY,

Defendants.

GLASGOW, A.C.J.—Mel T. Romero sued his former employer, Secret Gardens of Washington LLC, a marijuana producer and processor. After a bench trial, the trial court held that Secret Gardens did not breach its employment agreement with Romero and that it did not commit any statutory wage violations.

The central issue in the contract dispute was when Secret Gardens’ obligation to pay Romero a $150,000 annual salary began—October 1, 2014 or January 1, 2015. The trial court concluded that there was no meeting of the minds with regard to the start of the salary period. Thus, Romero’s breach of contract claim failed.

On appeal, Romero argues that the trial court erred by adopting several findings of fact that he contends were not supported by substantial evidence. Romero also argues that the trial court

erred when it interpreted the contract. Romero appeals the trial court’s conclusion that there were no wage violations, and he requests attorney fees and costs.

We affirm the trial court’s findings of fact and conclusions of law and order, and we deny Romero’s request for attorney fees and costs.

FACTS

A. Background William Delaney and Christy Klein, husband and wife, are the sole owners of Secret Gardens. In 2013, Delaney and Klein obtained a marijuana grow license and started the business. Neither Delaney nor Klein had any prior experience in marijuana production. Rather, Kyle Delaney, Delaney’s son, encouraged his father to seize the opportunity presented by the newly legalized recreational marijuana industry.

In January 2014, Delaney and Klein leased an 8,000 square foot facility in Bremerton and immediately began construction for a contained, two-story marijuana production facility inside of the warehouse. To initially invest in Secret Gardens, Delaney and Klein quit their jobs, sold everything of value in their house, maximized their credit card debt, and liquidated their 401(k) accounts.

By September 2014, with one or two grow rooms operational but still a significant amount of construction work left to do, Delaney and Klein moved in their first batch of marijuana plants. Around the same time, Kyle encouraged Delaney to start a research and development marijuana breeding program to develop unique marijuana strains for Secret Gardens. Kyle recommended Romero, a marijuana grower who sold seeds, for the research and development position.

In early September 2014, Delaney interviewed Romero. They discussed Romero’s qualifications, the job responsibilities, and compensation. Romero mentioned that his annual

earnings from selling marijuana and seeds fluctuated between $150,000 and $200,000 a year, and he wanted an annual salary of $150,000. Delaney agreed to the $150,000 salary and offered to hire Romero as Director of Research and Development (R&D).

The trial court found that Delaney and Romero discussed a start date of January 1, 2015 for the position and for his salary.1 Delaney chose that date because he anticipated Secret Gardens’ first harvest would be in January, and there would be “no revenue streams coming in prior to selling anything.” Verbatim Report of Proceedings (VRP) (Aug. 14, 2019) at 151. B. Romero’s Employment Contract Shortly thereafter, Delaney downloaded a blank contract that he found on the Internet and began to make alterations, describing the online contract as “almost a plug and play, . . . they prompted you [with] questions . . . and let you put in what you wanted.” Id. at 103-04. In the contract, Delaney indicated that Romero’s annual salary would be $150,000 and, at paragraph 7, that “[e]mployee’s annual compensation period will commence on January 1, 2015.” Clerk’s Papers (CP) at 1240. For Romero’s start date, the draft contract stated, “The Employee will commence permanent full-time employment with the Employer on the __ day of _______ 2014 (the ‘Commencement Date’).” CP at 1239. The draft contract included additional provisions concerning at will termination, conflict of interest, noncompetition, nonsolicitation, and duties and obligations concerning confidential information, among others.

The trial court found that Delaney printed and gave a copy of the contract to Romero,2 and later e-mailed Romero an electronic version. Romero took the contract to his attorney to review and make changes.

1 Romero disputes this finding.

2 Romero disputes this finding.

Romero’s attorney made multiple amendments to the draft contract. He deleted some provisions related to conflict of interest, noncompetition, nonsolicitation, and confidential information. The revised contract removed some, but not all, references to at will employment and added a one-year term. For work hours, the revised contract deleted mention of Romero’s full time employment and added that Romero was to “determine his own work schedule.” CP at 1395 (underscore omitted).

Relevant to this appeal, Romero’s attorney revised paragraph 7 to state that Romero’s “annual compensation period will commence (on the date that this agreement is signed) (or January 1, 2015 with retroactive payments from the date of ________).” CP at 1394 (underscore omitted). The trial court found that Romero printed the revised contract and wrote October 1, 2014 as the commencement date.3 Romero and Delaney met again about the contract. Delaney was preoccupied with getting the business licensed and open for production. Romero told Delaney changes had been made but he did not discuss the extent or significance of the changes. He did not discuss any specific revisions, and they were not redlined. In paragraph 7, relating to when Romero’s annual compensation period would begin, neither Delaney nor Romero selected an option or filled in the blank regarding retroactive payments. Delaney conceded he did not review the changes before signing the contract and placing it into a file. Romero offered conflicting testimony about the circumstances surrounding execution of the contract, and the trial court found his version of these events “lack[ed] credibility.” CP at 1081.

3 Romero disputes this finding.

On October 1, 2014, Romero began his work at Secret Gardens, starting with germinating dozens of marijuana seeds.4 At the time, Secret Gardens did not have a formal system to track their employees’ work hours. Secret Gardens’ visitor sign in sheets indicate that between October 1, 2014 and November 14, 2014, Romero came to the Secret Gardens facility 7 times, for a total of 12 hours of work, signing in as a visitor each time.

Secret Gardens paid Romero on an irregular basis for his work with checks and cash payments from October 1, 2014 through November 14, 2014, although Delaney could not testify as to what each payment represented in terms of hours worked. For Romero’s work, Secret Gardens did not withhold federal taxes, make payments for Romero to be covered by workers’ compensation insurance, or issue Romero a form 1099 or a form W-2.

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Mel T. Romero, V Secret Gardens Of Washington, Llc, Etal, (Wash. Ct. App. 2021).

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