Miller v. Hekimian Laboratories, Inc.

257 F. Supp. 2d 506, 2003 U.S. Dist. LEXIS 6818, 2003 WL 1950007
CourtDistrict Court, N.D. New York
DecidedApril 23, 2003
Docket1:01-cv-00047
StatusPublished
Cited by3 cases

This text of 257 F. Supp. 2d 506 (Miller v. Hekimian Laboratories, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Hekimian Laboratories, Inc., 257 F. Supp. 2d 506, 2003 U.S. Dist. LEXIS 6818, 2003 WL 1950007 (N.D.N.Y. 2003).

Opinion

MEMORANDUM-DECISION AND ORDER

SCULLIN, Chief Judge.

I. INTRODUCTION

Plaintiff originally filed this action in state court. On January 10, 2001, Defendant removed the matter to this Court based upon diversity jurisdiction. Plaintiffs complaint asserts two causes of action: (1) breach of contract and (2) violations of New York Labor Law §§ 190(1), 191 and 193.

II. BACKGROUND

By letter dated November 8, 1999, Defendant Hekimian Laboratories, Inc. (“Hekimian”) offered Plaintiff a position as an Account Manager. 1 See Dkt. No. 23, Affidavit of David P. Miller, sworn to April 3, 2002 (“Miller Aff.”), at Exhibit “F.” Together with the offer letter, Defendant sent Plaintiff an Employment Agreement and a document entitled “2000 Incentive Compensation Plan.” See Dkt. No. 36, Declaration of Kevin McCartney, dated April 2, 2002 (“McCartney Decl. I”), at ¶¶ 6-7 & Exhibits “B” & “C;” Miller Aff. at ¶ 14 & Exhibit “G.” In addition, Hekimian asserts that it also sent Plaintiff a document entitled “David Miller, Account Manager — At *510 lantic Region,” hereinafter referred to as the “Bonus Plan.” See Miller Aff. at ¶¶ 20-24 & Exhibit “K;” McCartney Decl. I at ¶¶ 8-9 & Exhibit “D.” Plaintiff does not recall receiving the Bonus Plan in November 1999, although he does concede that Mr. McCartney handed him that Plan in early January 2000. See Miller Aff. at ¶ 20.

At the crux of the parties’ dispute is the relationship among and relevance of the Employment Agreement, the 2000 Incentive Compensation Plan, and the Bonus Plan. The Employment Agreement, which Plaintiff signed on December 13, 1999, his first day of work at HeMmian, provides, in pertinent part, that

1.Salary, Duties, Expenses, Vacation and Travel.
(a) The Corporation agrees to employ the Employee and the Employee agrees to accept employment by the Corporation on a full-time basis as an Account Manager of the Corporation, at a minimum annual salary of $80,000.00 payable during the Term of Employment (as defined in Section 2 hereof). Such salary shall be payable in equal installments during each month or such other pay periods established from time to time by the Corporation, pursuant to its standard employment practices. During the Term of Employment, the Employee shall be governed by the Corporation’s policies applicable to other employees of the Corporation with respect to periodic reviews and increases in salary and fringe benefits, as hereinafter described, provided for such employees.
* * # * * *
3. Fringe Benefits. Nothing contained herein shall detract from or limit, during the Term of Employment, the Employee’s participation in any group insurance, hospitalization, retirement or other benefit plan or other arrangement available to all employees of the Corporation. The Employee’s participation in other benefits or incentive payments shall be at the discretion of the Board of Directors or the President of the Corporation or his designee.
‡ * * :]< Hí #
11. Entire Agreement. The foregoing contains the entire agreement between the parties relating to the subject matter of this Agreement, and may not be altered or amended except by an instrument in writing signed by both parties hereto, and this Agreement supersedes all prior understandings and agreements relating to employment of the Employee by the Corporation.

See McCartney Decl. I at Exhibit “C” at ¶¶ 1(a), 3,11 (emphasis added).

The 2000 Incentive Compensation Plan provides as follows:

David Miller
ACCOUNT MANAGER
2000 Incentive Compensation Plan
2000 Quota — to be determined
1. All bookings will be commissioned at 0.5%.
2. All bookings over quota will be commissioned at an additional 0.25%.
3. After achieving 100% of bookings quota, a $5,000 bonus will be issued.

See Miller Aff. at Exhibit “G;” McCartney Decl. I at Exhibit “B.”

Finally, the Bonus Plan provides that
Base Salary- $80,000
Quota- To be assigned for 2000
Assigned accounts- Bell Atlantic North
Commission- 0.5% for all bookings in assigned accounts
Other Incentives-
The following incentives will be paid for satisfactory implementation and support of the Bell Atlantic North REACT 2001 and DSL projects and a satisfactory performance rating at the date of the bonus *511 payment. These bonuses are gross amounts and will be issued on the payroll following the computation of bookings by the Accounting Department after the corresponding date(s) above, so long as the employee is on Hekimian’s payroll on the incentive date. No pro-ration will apply based upon partial completion of the period.
June 20, 2000- $7,500
December 31, 2000- $7,500
June 30, 2001- $7,500
December 31, 2001- $7,500
“Satisfactory implementation and support” will be clearly defined in a job performance agreement to be executed within 60 days of employee’s start date. In general terms, “satisfactory implementation and support” refers to:
• Managing customer expectations and issues,
• Positive promotion of features and benefits to new customer base,
• Assisting the implementation and support team, and
• Managing Hekimian’s internal organizations to meet the customer’s needs and terms of the contract

See McCartney Decl. I at Exhibit “D” (emphasis added).

Plaintiff relies upon the 2000 Incentive Compensation Plan as the basis for his claim that Hekimian has breached its agreement to pay him commissions on all “bookings,” including the Test DSL Contract, in the year 2000. In addition, Plaintiff argues that, based upon a conversation he had with his supervisor, Kevin McCartney, in December 1999, in which he was told that there would be no quota for the remainder of that year, he expected to be paid 0.5% commission on all bookings for the period December 13-31, 1999, including that portion of the Test DSL Contract that was “booked” during that time.

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Cite This Page — Counsel Stack

Bluebook (online)
257 F. Supp. 2d 506, 2003 U.S. Dist. LEXIS 6818, 2003 WL 1950007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-hekimian-laboratories-inc-nynd-2003.