Mina v. Hotel on the Cay Time-Sharing Ass'n

62 V.I. 220, 2015 V.I. LEXIS 34
Superior Court of The Virgin Islands·Decided April 2, 2015·No. Civil No. SX-00-CV-451·Published·Cited by 2 cases

Opinion

BRADY, Judge

MEMORANDUM OPINION

(April 2, 2015)

THIS MATTER is before the Court on Defendant Hotel on the Cay Time-Sharing Association Inc.’s (“HOTC”) Motion for Summary Judgment and accompanying Memorandum of Law (“Motion”), filed June 7, 2004 (dated April 28, 2004);1 Plaintiff’s Opposition, filed June 12, 2004; Defendants’ Reply, filed July 8, 2000; and Defendants’ Supplemental Memorandum of Law in Support of Motion for Summary Judgment, filed September 14, 2010 (“Supplemental Memo”). For the reasons that follow, Defendants’ Motion will be granted in part and denied in part.

BACKGROUND

Plaintiff filed his Verified Complaint (“Complaint”) after Defendant HOTC terminated his employment as General Manager of HOTC on March 25, 2000. Motion, at 1. Plaintiff had been the General Manager [225] from 1998, working pursuant to an oral contract. His duties included collecting dues; paying FICA payroll taxes, hotel room and gross receipts taxes; paying rent and managing the master ground Lease between HOTC and property owner Government of the Virgin Islands; and ensuring overall physical plant maintenance. Motion, at 4.

On February 18, 2000, the Board of Directors (“Outgoing Board”) convened a special meeting with three out of four Outgoing Board members in physical attendance. At that meeting, the Outgoing Board agreed to enter into a new written Management Contract with Plaintiff, by which Plaintiff was to serve as General Manager for a term of two years. Complaint, ¶14. Plaintiff and the Outgoing Board’s President signed the new Management Contract following the meeting of the Outgoing Board. Motion, at 8. Under the contract, HOTC was to increase Plaintiff’s annual salary from $26,000 to $52,000 (retroactive to October 1,1999) and other ancillary benefits such as health insurance and transportation allowances were provided to Plaintiff. Complaint, ¶15.

However, on February 18, 2000, the same day that Plaintiff signed his new Management Contract, the HOTC time-share owners held their first annual meeting in four years and elected a new Board of Directors (“New Board”). The New Board continued to pay Plaintiff’s salary (at the annual rate of $26,000), while informing Plaintiff that numerous deficiencies existed with various aspects of HOTC’s operations, and providing opportunity to correct those deficiencies. Motion, at 4. Following the HOTC New Board’s determination that Plaintiff had failed to remedy the noted deficiencies, HOTC informed Plaintiff that he would be terminated, effective March 25, 2000. Motion, at 9.

Plaintiff also alleges that on or about March 25, 2000, Defendants spread false information about him and conducted various actions, including entering his room and removing personal effects. Complaint, ¶21. Additionally, Plaintiff claims that he expended more than $25,600 of his own money to cover HOTC expenses, which HOTC has not yet reimbursed. See generally, Complaint, Count III.

As a result of these and various other actions by HOTC and the individual Defendants, Plaintiff brings his Complaint alleging breach of contract, violation of the Virgin Islands Wrongful Discharge Act, and an action for debt in the amount of $26,500 against HOTC (Complaint, Counts I-III); and intentional infliction of emotion distress and defamation against all Defendants (Complaint, Counts IV and V).

[226] DISCUSSION

A moving party will prevail on a motion for summary judgment where the record shows that there is no unresolved genuine issue of material fact and that the movant is entitled to judgment as a matter of law. Fed. R. Civ. R 56(a), applicable pursuant to SUPER. Ct. R. 7; Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S. Ct. 2548, 91 L. Ed. 2d 265 (1986). The reviewing court must determine whether there exists a dispute as to a material fact, the determination of which will affect the outcome of the action under the applicable law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S. Ct. 2505, 91 L. Ed. 2d 202 (1986). Such a dispute is genuine if the evidence is such that a reasonable trier of fact could return a verdict for the nonmoving party. Id. In analyzing the evidence, the court must consider the pleadings and full factual record, drawing all justifiable inferences in favor of the nonmoving party, to determine whether the movant has met its burden of showing that there is no unresolved genuine issue of material fact. Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S. Ct. 1348, 89 L. Ed. 2d 538 (1986).

A party opposing a motion for summary judgment may not rest upon the allegations or denials within its pleadings, but must set forth specific facts showing that there is a genuine issue for trial, such that the jury or judge as fact finder could reasonably find for the nonmoving party. Anderson v. Liberty Lobby, Inc., 477 U.S. at 248. The nonmoving party asserting that a fact is genuinely disputed must support the assertion by “citing to particular parts of materials in the record . . Fed. R. Civ. P. 56(c)(1)(A). See also Williams v. United Corp., 50 V.I. 191, 194 (V.I. 2008), citing Rule 56(e) prior to its 2010 amendment. “As to materiality, only those facts that ‘might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment.’ ” Id. (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. at 248).

I. Defendant HOTC is entitled to summary judgment on Count I of Plaintiff’s Complaint — Breach of Contract

a. There are no genuine issues of material fact in dispute.

Defendant HOTC argues that the Management Contract was never implemented by the Outgoing Board, because no resolution was ever formally approved at the February 18, 2000 meeting, the Board did not provide sufficient notice of the meeting to the timeshare unit owners as [227] required under the HOTC bylaws, and that non-attending Outgoing Board member Robert Shaughnessy was not properly notified of the special meeting as required by the bylaws. Motion, at 9. Therefore, Defendant HOTC contends that no valid written employment contract between Plaintiff and HOTC was ever properly approved, making Plaintiff an at-will employee pursuant to the terms of the existing oral agreement between HOTC and Plaintiff.

HOTC further argues that, even if the Management Contract did otherwise constitute a valid contract, the contract was nonetheless void because an outgoing governing body, such as the Outgoing Board, cannot bind the hands of the successor New Board through, in this case, a two year employment contract. Supplemental Memo, at 5-6.

Finally, Defendant HOTC claims that apart from the issue of the validity of the Management Contract, the New Board had more than sufficient “good cause” to terminate Plaintiff’s employment for a host of failures while he was serving as HOTC’s General Manager. Motion, at 11-15; Reply, at 5; See Supplemental Memo, generally, at 7-8.

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Mina v. Hotel on the Cay Time-Sharing Ass'n, 62 V.I. 220, 2015 V.I. LEXIS 34 (visuper 2015).

62 V.I. 220 (Mina v. Hotel on the Cay Time-Sharing Ass'n) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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