Paradise v. Eagle Creek Software Services, Inc.

989 F. Supp. 2d 132, 2013 WL 4807796, 2013 U.S. Dist. LEXIS 127477
CourtDistrict Court, D. Massachusetts
DecidedSeptember 6, 2013
DocketCivil Action No. 10-11678-FDS
StatusPublished
Cited by2 cases

This text of 989 F. Supp. 2d 132 (Paradise v. Eagle Creek Software Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paradise v. Eagle Creek Software Services, Inc., 989 F. Supp. 2d 132, 2013 WL 4807796, 2013 U.S. Dist. LEXIS 127477 (D. Mass. 2013).

Opinion

FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER COMPELLING ARBITRATION

SAYLOR, District Judge.

This is a contract dispute involving the alleged failure to pay certain commissions. Jurisdiction is based on diversity of citizenship. Plaintiff Jeremy Paradise is a former employee of Defendant Eagle Creek Software Services, Inc. He has brought suit against Eagle Creek and his former supervisor, Kenneth Behrendt. Paradise contends that defendants failed to pay him certain commissions due to him under his employment agreement. He also alleges violations of the Massachusetts Wage Act, Mass. Gen. Laws ch. 149 § 148.

A threshold issue is whether the dispute should be arbitrated. Pursuant to 9 U.S.C. § 4, the limited issue of whether there is a valid contractual agreement to arbitrate was tried to the Court in a bench trial on July 23, 2013. The parties each submitted proposed findings of fact and conclusions of law. For the reasons set forth below, the Court finds that there is an enforceable agreement to arbitrate, and will issue an order compelling arbitration.

I.FINDINGS OF FACT

A. Background

1. In the summer of 2007, plaintiff Jeremy Paradise was employed by Green Beacon Solutions, LLC. (Def. Tr. Ex. 65). As part of his job responsibilities, Paradise worked on a joint project with defendant Eagle Creek for 3Com. (Paradise Tr. Testimony, July 23, 2013).1

2. As an employee of Green Beacon, Paradise signed an agreement concerning ownership and disclosure of proprietary information, ownership of developments and inventions, non-competition, non-solicitation, and appropriate venues and governing law in the event of a dispute. (PL Tr. Ex. 62).

3. Paradise ended his employment with Green Beacon on September 28, 2007. (Def. Tr. Ex. 65).

4. At some point during the summer of 2007, Paradise and Eagle Creek employee Bob Dillon began discussing the possibility that Paradise would leave his position with Green Beacon to work for Eagle Creek.

5. Defendant Kenneth C. Behrendt is the founder, president, and CEO of Eagle Creek. Behrendt also met with Paradise in the summer of 2007, and participated in creating a position, salary class, and compensation plan for Paradise. (Pl. Tr. Ex. 84).

6. Beginning in July 2007, the parties exchanged a number of e-mails about the terms of the plan.

[136]*136B. Eagle Creek’s Offer of Employment

7. Anthony Carter was the Eagle Creek recruiting specialist tasked with overseeing the hiring of Paradise. (PI. Tr. Ex. 2).

8. On August 15, 2007, Carter sent Paradise an e-mail with the subject line “Eagle Creek Offer Letter and accompanying documents.” (PI. Tr. Ex. 8). Carter indicated that he had attached an “Offer Letter, Employment Agreement, EC Computer Agreement, ADP Application, and ADP Release Form.” He instructed Paradise to “sign and date where needed and fax back all of the pages.” (Id.).

9. The “Offer Letter” attached to the e-mail indicated that it “outlines [Eagle Creek’s] offer,” which was valid until August 18. (Id.). The letter included the sub-headings “Job Description,” “Office Location,” “Responsibilities,” “Compensation,” “Review,” “Benefits,” and “Start Date.”

10. Under the heading “Responsibilities,” the August 15 offer letter stated:

Eagle Creek treats information, such as prospect and customer contacts, vendor contacts, key third party contacts, sales reporting etc. as a proprietary corporate asset. It is therefore, a requirement of the position to keep this information confidential. It is also a condition of employment [that] the Employment Agreement (see attached) is signed by you prior to joining Eagle Creek.

(Id.). The letter ended by stating:

[fjrom all of us at Eagle Creek, we look forward to you joining the company. If you have any questions, please do not hesitate to contact me. If you agree with this offer, please sign at the indicated space below and return it to my attention.

(Id.).

11. Paradise did not sign and return the offer letter by August 18, 2007.

12. Due to an error, the document referred to as the “Employment Agreement” was not, in fact, attached to the August 15 e-mail.

13. On August 22, 2007, Carter emailed Paradise to ask whether he had “by chance accepted the EC offer.” (PL Tr. Ex. 9). Paradise responded that he had “verbally accepted” the offer, and inquired as to whether there was “anything else [he] needfed] to do.” (Id.). Carter responded that he would send an updated offer letter and notify HR. (Id.).2 He also stated that he “need[ed] the Application, ADP Release Form, Employee Property Agreement document, and Non Compete completed and faxed back to [him].” (Id.).

14. When he asked for the “Non Compete” to be completed and faxed back to him, Carter was referring to the “Employment, Non-Competition, and Confidentiality Agreement” (“the ENCCA”), the same document he had previously referred to as the “Employment Agreement.”

[137]*137C. Terms of the Employment, Non-competition, and Confidentiality Agreement

15. The ENCCA is a ten-page document. (PL Tr. Ex. 12).

16. Among other things, the first page of the ENCCA states that “the parties agreed prior to the Employee's employment that this [ajgreement must be executed as a condition to Employee’s beginning employment with Employer and to acknowledge Employee’s understanding of Employee’s employment.” (Id.).

17. The ENCCA includes several sections, labeled as follows: (1) “Employee’s Duties”; (2) “Ai>-Will Employment”; (3) “Compensation and Benefits”; (4) “Expenses”; (5) “Nondisclosure of Confidential Information”; (6) “Inventions”; (7) “Return of Company Property”; (8) “Restrictive Covenants,” including sub-sections “Non-Competition,” “Anti-Piracy,” “Non-Solicitation of Employees,” and “Acknowledgment”; (9) “Affirmative Disclosure Obligation of Existence of Agreement”; (10) “Injunctive Relief’; (11) “Compliance Information”; (12) “Arbitration”; (13) “Entire Agreement”; (14) “Governing Law/Forum Selection”; (15) “Notices”; (16) Severability”; (17) “Judicial Modification of Agreement”; (18) “Survival”; (19) “Waiver”; (20) “Successors and Assigns”; and (21) “Employee’s Ability to Enter Into Agreement.” (Id.).

18. The “Arbitration” section of the ENCCA provides as follows:

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989 F. Supp. 2d 132, 2013 WL 4807796, 2013 U.S. Dist. LEXIS 127477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paradise-v-eagle-creek-software-services-inc-mad-2013.