Pacheco v. H.N. Gorin, Inc.

28 Mass. L. Rptr. 311
CourtMassachusetts Superior Court
DecidedMay 10, 2011
DocketNo. 20091496
StatusPublished
Cited by1 cases

This text of 28 Mass. L. Rptr. 311 (Pacheco v. H.N. Gorin, 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
Pacheco v. H.N. Gorin, Inc., 28 Mass. L. Rptr. 311 (Mass. Ct. App. 2011).

Opinion

Leibensperger, Edward P., J.

Timothy Pacheco (“Pacheco”) filed this four-count lawsuit against the defendants H.N. Gorin, Inc., d/b/a H.N. Gorin Associates, Inc. (“Gorin Associates”), Kristian Gibson (“Gibson”), and Rosalind E. Gorin (“Rosalind”) (collectively “defendants”) seeking recovery of wages not paid to him as they became due. Count I (the “Wage Act claim”) of the complaint alleges violations of the Weekly Wage Law, G.L.c. 149, §§148 and 150 (“Wage Act”). Counts II and IV of the complaint allege defamation and invasion of privacy, respectively.2 Count III (the “Fiduciary Duty claim”) of the complaint alleges defendants breached a fiduciary duty owed to Pacheco.

Before this Court are Pacheco’s Motion for Summary Judgment with respect to the Wage Act claim (Count I), and defendants’ Motion for Summary Judgment as to the Wage Act claim and the Fiduciary Duly claims (Counts I and III). After reviewing the parties’ submissions and the relevant law, Pacheco’s Motion for Summary Judgment is ALLOWED, and defendants’ Motion for Summary Judgment is DENIED with respect to the Wage Act claim and ALLOWED with respect to the Fiduciary Duty claim.

BACKGROUND

On October 27, 2004, Pacheco commenced employment as a senior mechanic with Gorin Associates. While employed with Gorin Associates, Pacheco’s salary varied. Pacheco initially earned $800 per week but his earnings subsequently increased to $824 per week.

Approximately six to eight months after he began working for Gorin Associates, Pacheco was offered the opportunity to participate in a retirement program. He received an enrollment form to create a retirement account. The enrollment form is, apparently, missing.3 A copy has not been supplied by any of the parties. Nevertheless, the parties agree that “[f]rom December 16, 2005 to November 23, 2007, Gorin [Associates] deducted $82.40 from each of Pacheco’s paychecks in connection with Gorin’s SARSEP retirement program.” Consolidated Joint Statement of Material Facts (“SOF”) par. 47. Gorin Associates argues that the SARSEP retirement program was intended to qualify as a Salary Reduction Simplified Employee Pension (“SARSEP”) under the Internal Revenue Code, 26 U.S.C. §408(k)(6).

Pacheco’s wife, Kimberly Pacheco (“Kimberly”), filled out the enrollment form and selected the funds that Pacheco’s payroll deductions were to be invested in at Fidelity Investments.4 Pacheco returned the enrollment form to Kimberly Paikos (“Paikos”), an employee of Gorin Associates. Between December 16, 2005 and November 23,2007, atotal of $8,604.80 was deducted from Pacheco’s weekly paychecks.

Paikos is a Property Manager for Gorin Associates. She is also responsible for hiring new employees. As part of her hiring duties, Paikos is responsible for distributing and collecting the paperwork associated with establishing a new employee’s retirement account. Paikos mentioned Gorin Associates’ retirement plan to Pacheco during their first meeting. Upon collecting an employee’s enrollment form, Paikos would give Gibson the enrollment form. Gibson was Gorin Associates’ Asset Manager. As Asset Manager, Gibson had signatory authority over Gorin Associates’ payroll account and was in charge of Gorin Associates’ employee retirement accounts.

In late 2005, Pacheco asked Paikos about the status of his retirement account. Paikos responded that she did not know the status and that Pacheco should address the matter with Gibson. Gibson told Pacheco that he was “working on it.” Joint Appendix of Exhibits for Summary Judgment (“Joint Appendix of Exhibits”) [312]*312Ex. E, 54:11. Approximately every six months thereafter, Pacheco asked Paikos about the status of his retirement account. On these occasions, Paikos informed Pacheco that she did not have any information regarding the retirement account. Paikos further told Pacheco she would discuss the matter with Gibson and then contact Pacheco. When Paikos discussed Pacheco’s putative retirement account with Gibson, Gibson responded that he had to “get that taken care of or I have to do that." Joint Appendix of Exhibits Ex. C, 28:23-24.

On October 27, 2006, Kimberly wrote an email to Paikos inquiring why Pacheco had not received a statement from Fidelity Investments regarding the retirement account. Paikos responded by acknowledging that Pacheco had in fact inquired about the status of his retirement account and that she would bring the matter to Gibson’s attention. Paikos advised Gibson of Kimberly’s email and concern. Gibson responded that he had not done anything about the retirement account. In late 2006 or early 2007, Kimberly contacted Fidelity Investments seeking information about Pacheco’s retirement account. Fidelity Investments informed Kimberly that it had no record of a retirement account being created in Pacheco’s name by Gorin Associates.

On July 3, 2007, Pacheco was injured in a work-related accident. Gorin Associates continued to pay Pacheco’s salary from July 3, 2007, until the first week of January 2008, even though Pacheco was unable to work. Between July 3, 2007 and January 2008, Gorin Associates paid Pacheco approximately $20,600. Joint Appendix of Exhibits Ex. Q, par. 6. In January 2008, Pacheco began receiving Workers Compensation benefits, which lasted until October 2008. In October 2008, Pacheco and the workers compensation insurance carrier for Gorin Associates reached a settlement agreement. Pacheco continued to receive health, dental, and disability insurance through Gorin Associates until February 2009, which cost Gorin Associates approximately $30,000. Joint Appendix of Exhibits Ex. Q, par. 6.

On October 15, 2007, Pacheco wrote an email to Rosalind, the president of Gorin Associates. Pacheco’s email stated in part: “I know my wife has left numerous voice messages with Kris [Gibson] reguarding [sic] check stubs which I haven’t received in months nor anything reguarding [sic] my 401k.” Joint Appendix of Exhibits Ex. I. Rosalind did not respond to Pacheco’s email. On November 30, 2007, Kimberly sent Rosalind an email regarding Pacheco’s retirement account. The email in relevant part states:

We have not been provided with written documentation that HN Gorin created an account for Tim at Fidelity for his 401k. Tim has been having money withheld from his paycheck for contributions to his 401k for two years. Tim has contacted Fidelity and [has] been told there is no record of an account being created. If in fact the account was not created, Tim has not received returns on approximately $10,000 he has invested and will need to be made whole for his contributions and the lost [sic] of returns he should have earned.

Joint Appendix of Exhibits Ex. J, par. 3. On December 3, 2007, Gibson responded to Kimberly’s email stating that (1) he handled the situation incorrectly; (2) he had a check for Pacheco; and (3) they should meet in person to discuss the situation.5

On December 6, 2007, Kimberly, accompanied by her brother, met with Gibson. During this meeting, Gibson informed Kimberly that he never established a retirement account for Pacheco. Gibson also stated that Pacheco’s payroll deductions had not been invested in a retirement account on Pacheco’s behalf. Gibson offered Kimberly a check for $8,075.20.

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Bluebook (online)
28 Mass. L. Rptr. 311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacheco-v-hn-gorin-inc-masssuperct-2011.