Montlouis v. Pirus Networks, Inc.

19 Mass. L. Rptr. 277
CourtMassachusetts Superior Court
DecidedMarch 15, 2005
DocketNo. 025364
StatusPublished

This text of 19 Mass. L. Rptr. 277 (Montlouis v. Pirus Networks, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montlouis v. Pirus Networks, Inc., 19 Mass. L. Rptr. 277 (Mass. Ct. App. 2005).

Opinion

Gants, J.

The plaintiff Webert Montlouis (“Montlouis”) has filed a second amended complaint against his former employer, the defendant Pirus Networks, Inc. (“Pirus”), and its Executive Vice President of Technology, defendant Richard Corley (“Corley”), alleging that Pirus and Corley:

1. terminated him and subjected him to a hostile work environment because of his race and national origin, in violation of G.L.c. 15 IB, §4(1);
2. retaliated against him after he orally complained to his supervisor, Douglas Wood (“Wood”), Pirus’s Vice President of Engineering, that the proposed promotion of Paul Sweeney (a white engineer) would be unfair, in violation of G.L.c. 151B, §§4(4);
3. breached Pirus’s oral agreement to employ him for four years and to grant him stock options in Pirus;
4. breached its implied-in-fact contract with him by wrongfully discharging him and refusing to grant him stock options;
5. breached the implied covenant of good faith and fair dealing by terminating him before the promised stock options had vested;
6. wrongfully terminated him because of his race and national origin, in violation of public policy;
7. negligently inflicted emotional distress upon him through its discrimination; and
8. were unjustly enriched at his expense.

The defendants have moved for summary judgment as to all of plaintiffs claims. After hearing, for the reasons detailed below, the defendants’ motion for summary judgment is ALLOWED as to all of plaintiffs claims.

BACKGROUND

In evaluating a motion for summary judgment, this Court must rely on facts not in dispute as well as disputed facts viewed in the light most favorable to the nonmoving party. Beal v. Board of Selectmen of Hingham, 419 Mass. 535, 539 (1995). Consequently, the facts stated below are presented in the light most favorable to Montlouis and should not be misunderstood as findings of the Court.

Pirus was a start-up corporation formed to create, design, and market an Internet Protocol storage networking system known as a Storage Utility Switch. Montlouis was hired by Pirus to join its technical staff as a senior level designer and commenced work on May 7, 2000. Montlouis obtained his job interview at Pirus through Logix, an employment placement firm, and interviewed with Corley, Wood, and Brian Schofer. Wood made the decision to hire Montlouis based, in part, on Corley’s recommendation. In Corley’s interview with Montlouis, Corley told Montlouis that Pirus would proceed to an initial public offering and would not be sold to another company. Corley said Montlouis would be employed by Pirus for at least four years, and then would receive equity in Pirus under its 2000 Stock Option Plan, which provided for a four-year vesting period for those options.

On or about April 19, 2000, Pirus made Montlouis a written offer of employment, which provided for $110,000 in annual salary, a signing bonus of $7,500, and an option to purchase 28,000 Pirus shares through participation in its Stock Option Plan. Wood separately agreed to establish a tuition reimbursement program for Montlouis. The written offer of employment explicitly provided that Montlouis’ employment would be at-will, stating, “Your employment with Pirus Networks is entirely voluntary for both parties and either you or Pirus Networks may conclude the employment relationship at any time for any reason.” The Stock Option Plan referenced in the written offer of employment also made clear that it should not be understood as a promise of continued employment. In the first sentence of paragraph 9, it declared;

Nothing contained in the Plan or this Agreement shall be construed or deemed by any person under any circumstances to bind the Company to continue the employment of the Employee for the period within which this Option may be exercised, nor shall the Plan or this Agreement create any duty of the Company or any of its affiliates or other shareholders to the Employee, comparable to the duties which partners or joint venturers may owe to each other.

Montlouis accepted the offer of employment in writing on April 24, 2000.

When Montlouis began his employment, Pirus had 38 other employees; Montlouis was the only black employee. When Montlouis’ employment was terminated, Pirus had grown to 121 employees, but Montlouis remained the only black.

The Storage Utility Switch that Pirus was created to design and market allows computers using various storage protocols to connect with storage devices from different vendors. The primary hardware components of the Storage Utility Switch are a Storage Resource Card and a Switch Fabric Card. A key component of the Storage Resource Card is a Direct Memory Access (“DMA”) chip. As a senior level designer, Pirus assigned Montlouis the overall responsibility to design and program the DMA chip. To successfully design the DMA chip, Montlouis needed to program it to pass information to the Queue Manager. By early October 2000, Montlouis reported to Wood that he was 90% completed in programming the base functionality of the DMA chip. To determine if Montlouis had successfully programmed the DMA chip, it had to be “debugged,” which could not occur until Pirus received the Storage Resource Card on which the DMA chip was to sit, which did not occur until November 2000. Once the de-bugging of the DMA began, it became apparent that the DMA could not communicate information with the Queue Manager. The reason was that, based [279]*279on the instructions he had been given by Corley and Wood, Montlouis had programmed the DMA chip to support “burst” transactions but the Queue Manager could only support “single-beat” transactions.1 Consequently, the DMA chip needed to be redesigned to support “single-beat" transactions. Corley and Schofer were assigned to assist Montlouis in this effort, which was given the name “Thunderdome” and completed in roughly three weeks. The magnitude of this error and the remedial action required was unprecedented at Pirus. Because Corley and Schofer needed to be shifted to work on “Thunderdome,” they were unavailable to work on their own projects for the Storage Utility Switch, which pushed the project even further behind.

After “Thunderdome,” Montlouis was given further tasks to perform on the DMA chip. Pirus developed a schedule for the completion of these tasks. Montlouis eventually completed these tasks but all were completed behind schedule. Montlouis was not the only Pirus engineer to be late in completing his tasks; Corley and Paul Sweeney were equally or more late on many of their tasks.

In or around August 2000, roughly three months after Montlouis began work with Pirus, Wood considered promoting Sweeney to a new position — Director of Component Engineering. Wood did not consider Montlouis for this position because he thought that Sweeney was more senior and more appropriate for the position than Montlouis. In keeping with his normal practice when he considered an employee for promotion, Wood asked several Pirus engineers, including Montlouis, what they felt about the proposed promotion for Sweeney. When Wood asked Montlouis, he paused, thought about it, and told Wood he would get back to him tomorrow.

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Bluebook (online)
19 Mass. L. Rptr. 277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montlouis-v-pirus-networks-inc-masssuperct-2005.