Obourn v. American Well Corp.

115 F. Supp. 3d 301, 2015 U.S. Dist. LEXIS 90351, 2015 WL 4250723
CourtDistrict Court, D. Connecticut
DecidedJuly 13, 2015
DocketCivil No. 3:15-CV-48 (JCH)
StatusPublished

This text of 115 F. Supp. 3d 301 (Obourn v. American Well Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Obourn v. American Well Corp., 115 F. Supp. 3d 301, 2015 U.S. Dist. LEXIS 90351, 2015 WL 4250723 (D. Conn. 2015).

Opinion

RULING RE: DEFENDANT’S MOTIONS TO DISMISS (Doc. Nos. 21, 38, 49)

JANET C. HALL, District Judge.

I. INTRODUCTION

Plaintiff Noel Obourn brought this suit in state court alleging that her former employer breached their contract and violated the Massachusetts Wage Act (the “MWA”) by failing to pay bonuses. Defendant American Well Corporation (“American Well”) removed the suit to this court. Obourn has since amended her Complaint to add quasi-contract, misrepresentation, and breach of the implied covenant of good faith and fair dealing claims. See Second Am. Compl. American Well then filed a Motion to Dismiss (Doc. No. 49) the now-operative Second Amended Complaint.1

For the following reasons, the court denies in part and grants in part American Well’s Motion.

II. BACKGROUND

The Second Amended Complaint alleges the following. Obourn entered into a written employment contract (the “Contract”) with American Well on May 11, 2011. Second Am. Compl. ¶7; Compl. (Doc. No. 1-1), Ex. A.2 The Contract states that it is to be governed by Massachusetts law. Second Am. Compl. ¶ 8. Under the Contract, Obourn was to be employed as a “Senior Vice President Employer Sales” and American Well would compensate her with a base salary of $275,000, an annual bonus of $75,000, stock options, commissions, expense reimbursement, and other fringe benefits. See id. ¶¶ 9-10.

The provision of the Contract relevant to this Motion — section 3(b) (the “Bonus Provision”) — states:

You will be eligible to receive an annual bonus (the “Annual Bonus”) in the amount of $75,000 ... which shall be payable within 60 days following the end of the calendar year to which it relates. In order to earn such Annual Bonus you must: (i) be employed by the Company on the date on which the Annual Bonus is paid; and (ii) have met specific performance criteria, which will be ap[305]*305proved by the Company’s CEO and communicated to you in writing within the first 60 days of the calendar year to which the Annual Bonus will relate. The determination of whether such milestones have been met will be determined by the Company it [sic] its sole discretion (which determination will not be unreasonably withheld).

Compl., Ex. A § 3(b). American Well offered these annual bonuses because Ob-ourn’s base salary at her previous job was $375,000. Second Am. Compl. ¶ 13. Ob-ourn relied on the Bonus Provision when signing the Contract. See id. ¶ 14.

American Well did not provide Obourn with written performance criteria within the first 60 days of her employment, the first 60 days of 2012, the first 60 days of 2013, or the first 60 days of 2014. See id. ¶¶ 16, 19, 23, 31.3 Obourn specifically requested that American Well pay her an annual bonus for her work in 2011, 2012, 2013, and 2014, but American Well declined to do so. See id. ¶¶ 18, 22, 26, 29, 30.

Obourn claims that American Well’s failure to provide performance criteria and pay her annual bonuses gives rise td the following claims: (1) breach of contract; (2) violation of the Massachusetts Wage Act; (3) quasi-contract; (4) breach of the implied covenant of good faith and fair dealing; and (5) misrepresentation.

III. STANDARD

When deciding a motion to dismiss pursuant to Rule 12(b)(6), the court must determine whether the plaintiff has stated a legally cognizable claim by making allegations - that, if true, would show that the plaintiff is entitled to relief. See Bell Atl. Corp. v. Twombly, 550 U.S. 544, 557, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (interpreting Rule 12(b)(6), in accordance with Rule 8(a)(2), to require allegations with “enough heft to ‘sho[w] that the pleader is entitled to relief ” (alteration in original)). The court takes the factual allegations of the complaint to be true, Hemi Grp., LLC v. City of New York, 559 U.S. 1, 5, 130 S.Ct. 983, 175 L.Ed.2d 943 (2010), and draws all reasonable inferences in plaintiffs favor, Fulton v. Goord, 591 F.3d 37, 43 (2d Cir.2009). However, the tenet that a court must accept a complaint’s allegations as true is inapplicable to “[t]hread-bare recitals of the elements of a cause of action,, supported by mere conclusory statements.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (citing Twombly, 550 U.S. at 555, 127 S.Ct. 1955).

To survive a motion pursuant to Rule 12(b)(6), “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Twombly, 550 U.S. at 570, 127 S.Ct. 1955). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged. The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Iqbal, 556 U.S. at 678, 129 S.Ct. 1937 (2009) (quoting Twombly, 550 U.S. at 556, 127 S.Ct. 1955).

[306]*306. The court may consider, written instruments attached to, or incorporated by reference by, the complaint., See Subaru Distribs. Corp. v. Subaru of Am., Inc., 425 F.3d 119, 122 (2d Cir.2005). The court need not “accept the allegations of the complaint as to how to construe such documents,” but any contractual ambiguities should be resolved in favor of the plaintiff at the motion to dismiss stage. Id.

IV. DISCUSSION

American Well seeks to dismiss all counts of Obourn’s Second Amended Complaint. The court addresses American Well’s arguments in turn.

A. Breach of Contract

American Well argues that Obourn’s breach of contract claim fails because: (1) the Contract unambiguously states that annual bonuses are discretionary; (2)'“the provision regarding performance criteria is too vague to be enforced,” and (3) the Contract does not provide for a prorated bonus for a partial year. See Memorandum in' Support of Defendant’s Motion to Dismiss (Doc. No. 50) (“Def.’s Mem. Supp.”) at 4. American Well also asserts that Oboum’s breach of contract claim for a 2011 bonus fails because the Bonus Provision does not provide for prorating annual bonuses. Finally, it contends that Ob-ourn’s breach of contract claim for the 2014 bonus fails because Obourn was not employed for the first 60 days of 2015.

1. Whether the Annual Bonus Was. Discretionary

American Well contends that, under Massachusetts law (which the parties agree applies), Obourn has no contractual right- to a “performance-based, discretionary bonus.” See id. Obourn argues that the annual bonus was not, in fact, entirely discretionary.. See Plaintiffs Opposition to Defendant’s Motion to Dismiss (Doc. No.

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Bluebook (online)
115 F. Supp. 3d 301, 2015 U.S. Dist. LEXIS 90351, 2015 WL 4250723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/obourn-v-american-well-corp-ctd-2015.