Melissa French, Respondent/cr-appellant V. Dan Roth, Appellant/cr-respondents

CourtCourt of Appeals of Washington
DecidedJune 16, 2025
Docket85508-5
StatusUnpublished

This text of Melissa French, Respondent/cr-appellant V. Dan Roth, Appellant/cr-respondents (Melissa French, Respondent/cr-appellant V. Dan Roth, Appellant/cr-respondents) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Melissa French, Respondent/cr-appellant V. Dan Roth, Appellant/cr-respondents, (Wash. Ct. App. 2025).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DAN ROTH, individually and TERESA GARCIA, as wife of DAN ROTH, and No. 85508-5-I their marital community; PLURALSTACK LLC, a Washington DIVISION ONE limited liability company, UNPUBLISHED OPINION Appellant/Cross-Respondent,

v.

MELISSA FRENCH, an individual,

Respondent/Cross-Appellant.

MANN, J. — Melissa French sued Dan Roth and his company Pluralstack LLC

(Pluralstack) alleging multiple claims, including breach of contract and unjust

enrichment, related to transactions concerning vendor contracts with French’s employer

Kaiser Permanente. A jury found that there was no contract or agreement between

French and Roth or Pluralstack, but it awarded French $1,600,000 on her claim of

unjust enrichment. Roth appeals and argues the trial court erred in declining to give his

proposed jury instructions and special verdict form based on his affirmative defenses of

illegality, in pari material, and unclean hands. Roth also argues that the trial court erred

in awarding prejudgment interest. We remand to strike the award of prejudgment

interest but otherwise affirm. No. 85508-5-I/2

I

A

French and Roth became friends while working together at Microsoft between

2010 and 2012. They often had lunch and discussed going into business together.

French and Roth both left Microsoft for other jobs in 2012. They remained friends and

continued to discuss the possibility of starting a business together.

In 2016, French was employed at Group Health Cooperative, later acquired by

Kaiser Permanente (collectively Kaiser), as the Director of Digital Information

Technology. In her role at Kaiser, French interacted with vendors and had influence on

the selection, hiring, oversight, management, and termination of those vendors.

French’s supervisors at Kaiser included John Rodgers and Kari Escobedo. Rodgers

and Escobedo relied on French’s input and recommendations in selecting and hiring

venders.

In July 2016, Roth incorporated Pluralstack, with the stated purpose to “provide

consulting services to various businesses to enhance their sales and distribution

strategies.” Roth was listed as the sole member of Pluralstack. Roth and French

agreed to work together to facilitate Pluralstack becoming a vendor of Kaiser before

Roth incorporated Pluralstack.

French subsequently introduced Roth to her supervisor, Escobedo. Escobedo

interviewed Roth and determined that Kaiser would hire Pluralstack as a vendor. In

August 2016, Kaiser and Pluralstack signed a Master Service Agreement (MSA). The

MSA allowed Pluralstack to work for Kaiser on projects based on terms to be agreed

upon in written statements of work (SOW). Roth signed the MSA on behalf of

-2- No. 85508-5-I/3

Pluralstack, and Michael Chung signed on behalf of Kaiser. The MSA was controlling

the entire time Pluralstack provided services to Kaiser.

French and Roth met regularly, often weekly, to discuss all aspects of

Pluralstack’s business. Roth sought French’s opinion and advice on many different

business issues such as healthcare benefit packages, hiring, firing, and compensation.

Roth made payments to French without informing Kaiser. In order to keep French’s

involvement in Pluralstack a secret, Roth created a Pluralstack e-mail for French named

anyone@pluralstack.io—where Roth referred to French as “Annie” or “Annie Won.”

Roth and French concealed their relationship from everyone at Kaiser. They did

not disclose that French had a financial interest in Pluralstack. They actively concealed

payments Roth and Pluralstack made to French.

Pluralstack provided high quality products and services to Kaiser that were at or

under fair market value. French recommended that Kaiser enter into certain SOWs with

Pluralstack if she thought it would be a good fit, but she occasionally did not

recommend Pluralstack. After working with Pluralstack, other employees at Kaiser,

without French’s input, would recommend that Kaiser retain Pluralstack to complete

several projects. There were over 40 SOWs between Pluralstack and Kaiser worth over

$40 million. Roth personally signed each SOW.

Roth and French’s relationship ended in 2019. Pluralstack stopped doing

business with Kaiser in 2019.

B

Roth and French dispute how and why payments were made to French and what

French’s role was at Pluralstack.

-3- No. 85508-5-I/4

According to French, she and Roth mutually started Pluralstack with the goal of

getting the MSA with Group Health before it was acquired by Kaiser. French testified

that she and Roth discussed they would be equal partners, sharing profits, risks, and

decision making. French testified that the plan was for her to join Pluralstack after the

MSA was signed. She testified that her salary at Pluralstack was equal to her salary at

Kaiser, and if she got a raise or bonus, so would Roth.

French testified that from 2016 to 2017, Roth paid her with cash and a debit card.

French explained that Roth eventually met with an attorney who advised that creating a

trust would be the best way to pay French and keep her involvement a secret. French

testified that Roth proceeded to create a trust called Epic Draw Trust, and Roth paid her

through the trust from July 2017 to August 2018. According to French, Roth met with an

attorney who advised to no longer use the trust and to instead compensate French

through a consulting company. French created a business called 10in10 Consulting,

which Roth subsequently paid for French’s work.

According to Roth, he never agreed to be business partners with French. He

testified that he never agreed to split profits or for French to eventually join Pluralstack.

Roth testified that he only paid French because she forced him to pay her because she

was giving advice. Roth testified that he initially paid her through a debit card and cash

and then eventually through her company 10in10 Consulting.

Roth testified that it was never a discussion that French would become an

employee with Pluralstack. Roth testified that, after French left Kaiser, he told her that

Pluralstack was winding down, and she could not become an employee. After that

conversation, Roth and French had a falling out.

-4- No. 85508-5-I/5

C

French sued Roth and Pluralstack in March 2021 asserting claims of breach of

contract, unjust enrichment, fraud, misrepresentation, negligent misrepresentation,

breach of fiduciary duty, breach of partnership, appointment of receiver, and declaratory

judgment. French sought damages for breach of contract, unjust enrichment, and fraud.

French also sought a declaration from the court that French was a 50 percent owner in

Pluralstack, that she is entitled to 50 percent of the profits of Pluralstack from its

inception to the present, and that she was entitled to 50 percent of the value of

proceeds from winding down the business.

Roth denied the allegations in the complaint and asserted several counterclaims

against French. Roth also raised multiple affirmative defenses, including the doctrines

of illegality, in pari delicto,1 and unclean hands.

Roth unsuccessfully moved to dismiss each of French’s claims under CR

12(b)(6) and CR 9(b). After discovery, Roth’s motion for summary judgment was

denied. During trial, Roth moved for judgment as a matter of law arguing any alleged

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