Miller v. Blattner

676 F. Supp. 2d 485, 2009 U.S. Dist. LEXIS 115978, 2009 WL 4929036
CourtDistrict Court, E.D. Louisiana
DecidedDecember 14, 2009
DocketCivil Action 08-3788
StatusPublished
Cited by4 cases

This text of 676 F. Supp. 2d 485 (Miller v. Blattner) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Blattner, 676 F. Supp. 2d 485, 2009 U.S. Dist. LEXIS 115978, 2009 WL 4929036 (E.D. La. 2009).

Opinion

ORDER & REASONS

ELDON E. FALLON, District Judge.

Before the Court is a Motion for Partial Summary Judgment filed by the Plaintiff (Rec. Doc. 62), a Motion for Summary Judgment filed by Defendants Allpax Products, LLC and Pro Mach, Inc. (Rec. Doc. 67), a Motion for Summary Judgment filed by Defendants Michael F. Blattner and Steven B. Hudson (Rec. Doc. 68), and a Motion for Summary Judgment to Dismiss the Counterclaim of Allpax Products, LLC filed by the Plaintiff (Rec. Doc. 93). For the following reasons, the Plaintiffs Motion for Partial Summary Judgment (Rec. Doc. 62) is now DENIED, the Motion for Summary Judgment filed by Defendants Allpax Products, LLC and Pro Mach, Inc. (Rec. Doc. 67) is now GRANTED IN PART AND DENIED IN PART, the Motion for Summary Judgment filed by Defendants Michael F. Blattner and Steven B. Hudson (Rec. Doc. 68) is now GRANTED IN PART AND DENIED IN PART, and the Motion for Summary Judgment to Dismiss the Counterclaim of All-pax Products, LLC filed by the Plaintiff (Rec. Doc. 93) is now DENIED.

I. BACKGROUND

This dispute centers around the payment of a bonus allegedly owed to plaintiff Leonce J. Miller III (“Miller”). Miller was hired to be a staff engineer by Defendant Allpax Products, LLC (“Allpax”) in November of 2003. At the time, Allpax was owned by Defendants Michael F. Blattner (“Blattner”) and Steven B. Hudson (“Hudson”). In May of 2006, Defendant Pro Mach, Inc. (“Pro Mach”) agreed to purchase Allpax and all of its assets and liabilities from Blattner and Hudson pursuant to a Stock Purchase Agreement (“SPA”). Under the SPA, Blattner and Hudson were to receive a fixed amount of money plus an additional $5,000,000 in the event that Allpax achieved a specified cumulative earnings for the 2006 and 2007 calendar years. Additionally, if these earnings levels were achieved, Pro Mach expressly agreed to distribute up to $500,000 to members of the Allpax management team, including Miller. Miller’s portion of this bonus totaled approximately $55,000. The SPA provided that this bonus would be “deemed compensation for services.” Miller learned of this bonus in a subsequent letter dated May 19, 2006, from Hudson. The signature line read “Stephen B. Hudon, President!,] Allpax Products, Inc.” The parties do not dispute that Miller was eventually paid this bonus.

Subsequent to the consummation of the SPA, Miller, who had already been employed by Allpax since 2003, entered into an employment agreement with Allpax. Around the same time, Miller was informed that Blattner and Hudson were offering a discretionary bonus to five members of the Allpax management team, including Miller, in the event that the earnings goals were met. These bonuses were to be paid out of a $1 million pool with the specific amounts of any bonuses awarded to be determined by Blattner and Hudson, and were entirely distinct from the aforementioned bonus provided for by the SPA. Miller was informed that if the $1 million pool was split evenly, he would receive $200,000.

*489 Ultimately, Allpax met their cumulative earnings goal. However, instead of paying Miller a bonus of $200,000, Blattner and Hudson exercised their discretion and offered him $80,000. They made the payment of this bonus conditional upon the execution of a full release of liability for Blattner and Hudson. Miller then asked to meet with Blattner and Hudson to discuss the amount of his bonus. Blattner and Hudson declined this meeting and when Miller refused to sign this release, they withdrew their offer.

On March 10, 2008, Miller submitted a written resignation to Allpax after securing employment elsewhere. Upon his departure, Miller took several emails from Allpax customers which included contact information. In addition Miller took a letter addressed to Greg Jacobs, Allpax’s General Manager, from Allpax’s attorneys. Miller had been copied on the letter, which contained patent application materials for something that he had invented. Miller asserts that this letter was taken accidentally as he cleaned out his office.

On June 24, 2008, Miller initiated the instant lawsuit. In his complaint, Plaintiff asserts a variety of state law claims including a claim under the Louisiana Wage Payment Statute (“LWPA”), a claim under Louisiana Civil Code Article 1978 as a third party beneficiary of the agreement, a claim under Louisiana Civil Code Article 2298 for enrichment without cause, a claim under Louisiana Civil Code Article 1967 for detrimental reliance, and a claim for breach of contract. On March 26, 2009, plaintiff amended his complaint to include claims against Allpax and Pro Mach for negligence, defamation, and invasion of privacy related to the release of his confidential personnel files by Allpax and Pro Mach to Blattner and Hudson.

On March 23, 2009, Allpax filed a counterclaim against Miller asserting that Miller breached his employment agreement by 1) not devoting his best efforts to the performance of his duties; 2) acting in a manner which damaged the goodwill, reputation and business relations of Allpax with its customers and; 3) misappropriating trade secrets. The counterclaim seeks relief in the form of an order that Miller return any confidential materials to Allpax, an injunction to prevent the use or disclosure of these materials, and monetary damages including repayment of the $55,000 performance bonus.

II. PRESENT MOTIONS

A. Miller’s Motion for Partial Summary Judgment

First, Plaintiff has filed a motion for partial Summary judgment on his LWPA claims against all Defendants. Plaintiff argues that Allpax, ProMach, Hudson and Blattner were all Miller’s co-employers and that the offered bonus of $80,000 constitutes a wage that should have been offered unconditionally. Blattner and Hudson have responded and claim that they were not Miller’s employer and that the bonus was not a wage. Allpax and Pro Mach have responded and argue that the bonus was a personal offer made to Miller by Blattner and Hudson and is therefore not a wage owed by Allpax or Pro Mach.

B. Allpax and Pro Mach’s Motion for Summary Judgment

Second, Allpax and Pro Mach have filed a motion for summary judgment on all of Plaintiffs claims. In addition to their argument regarding the LWPA, discussed above, Allpax and Pro Mach assert that any salary and bonuses due to Miller were governed exclusively by the terms of his employment contract. Further, they assert that Miller’s third party beneficiary claim fails because the SPA was not intended to benefit Miller. Additionally, All- *490 pax and Pro Mach claim that Miller cannot establish a claim for detrimental reliance against them because they never promised him the disputed bonus, and he therefore could not have relied on any promise to his detriment. Regarding Miller’s unjust enrichment claim, Allpax and Pro Mach point out that Miller, as an employee of Allpax, was required to work towards meeting the company goals even absent a performance bonus and that any enrichment could not have been unjust. Furthermore, they argue that Miller did not suffer any impoverishment because he was compensated for his time at work, and that even if he did, he cannot establish a causal connection to Allpax or Pro Mach because the bonus was promised by Hudson and Blattner.

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

Related

In re CTLI, LLC
528 B.R. 359 (S.D. Texas, 2015)
In re Information Management Services, Inc. Derivative Litigation
81 A.3d 278 (Court of Chancery of Delaware, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
676 F. Supp. 2d 485, 2009 U.S. Dist. LEXIS 115978, 2009 WL 4929036, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-blattner-laed-2009.