Robinson v. Kelly Cable of N.M., LLC

CourtSuperior Court of Delaware
DecidedDecember 8, 2025
DocketN24C-11-037 CEB
StatusPublished

This text of Robinson v. Kelly Cable of N.M., LLC (Robinson v. Kelly Cable of N.M., LLC) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robinson v. Kelly Cable of N.M., LLC, (Del. Ct. App. 2025).

Opinion

IN THE SUPERIOR COURT FOR THE STATE OF DELAWARE

DONNA ROBINSON, ) ) Plaintiff, ) ) v. ) C.A. No. N24C-11-037 CEB ) KELLY CABLE OF N.M., LLC, ) a/k/a KELLY CABLE OF NEW ) MEXICO, LLC, PEAK ) UTILITY SERVICES GROUP ) INC., and IX CAPITAL PEAK ) HOLDINGS, LLC, ) ) Defendant. )

Submitted: November 11, 2025 Decided: December 8, 2025

MEMORANDUM OPINION

Upon Consideration of Plaintiff’s Motion for Summary Judgment: GRANTED.

Daniel C. Herr, LAW OFFICE OF DANIEL C. HERR LLC, Wilmington, Delaware. Attorney for Plaintiff.

Ronald N. Brown, III & Daniel P. Klusman, DLA PIPER LLP, Wilmington, Delaware; Michael W. Massiatte, DLA PIPER LLP, Dallas, Texas; Jessica F. Daneshvar, DLA PIPER LLP, New York, New York. Attorneys for Defendants.

BUTLER, R.J. I. FACTUAL BACKGROUND

Peak Utility Services Group, Inc. is the parent company of subsidiary Kelly

Cable Company of N.M. LLC (“Kelly Cable”). 1 Together with IX Capital Peak 0F

Holdings, LLC (“Capital”), they are the Defendants in this action, brought by the

former president of Kelly Cable Company, who seeks compensation under her

employment agreement.

Plaintiff Donna Robinson was hired by Kelly Cable in 2013. 2 She was 1F

eventually given the job of president in 2021. When she assumed the presidency,

the parties entered into an Employment Contract, a copy of which is appended to the

Complaint. 3 One feature of the Employment Contract was its inclusion of the terms F

of severance from Robinson’s employment with Kelly Cable. The severance

provisions are why we are here, so they are worth a look at the outset.

If Robinson was terminated through no fault of her own – “without cause” –

she was to continue to receive her annual salary for another year, provided she

executed a “General Release” in favor of the Company. 4 In addition, the Company 3F

would pay her COBRA insurance premiums for another year. 5 If she was terminated 4F

1 Ryan Polk Aff., D.I. 19, ¶1. 2 Compl. ¶7. 3 Compl., Ex. A. 4 Id. 5 Id. 2 “for cause,” she would be paid only until her termination date, and she would have

to pay any COBRA premiums herself. 6 5F

The General Release that had to be executed in order to receive severance

payments is a significant feature in this dispute. A copy of a draft General Release

was included as an exhibit to Robinson’s initial Employment Contract. The

Employment Contract provided that no modification of the draft General Release

was permitted except for “any changes to such form as either party may reasonably

require to reflect the circumstances relating to the termination of Your employment

and/or changes in applicable law.” 76F

Separately from the Employment Contract, Robinson was the recipient of “P

units” in IX Capital Peak Holdings. 8 P units appear to represent an entitlement to 7F

share in the profits of Capital and were distributed to managers and executives.

Robinson received 40,000 units in 2018 and an additional 500,000 in December

2021, presumably when she became president of Kelly. 9 The LLC agreement by 8F

which these units were awarded provided that if she was no longer employed by

Kelly, Capital could repurchase the units. 10 If Capital did not elect to repurchase the 9F

6 Id. 7 Id. 8 Compl. ¶12. 9 Id. 10 Ryan Polk Aff., Ex. B. 3 units, they could nonetheless have value in the event of a sale of Capital. 11 If she 10F

was terminated without cause, Capital could repurchase the units at fair market

value. If she was terminated for cause, Capital could repurchase the units for the

lesser of 1) the fair market value and any capital contribution made or 2) the purchase

price paid for the P shares – presumably zero. 12 11F

On January 31, 2023, Robinson was informed that her employment with Kelly

Cable was ending, effective immediately. 13 She was informed this was due to a 12F

restructuring and it was not “for cause.” Thus, the “without cause” separation

provisions of her Employment Contract were triggered.

But at this point, Kelly Cable made things complicated. Robinson was

presented with a “Severance Agreement” that provided her continued salary for one

year and that the Company would pay her COBRA premiums for one year, both

proper “without cause” provisions. But the Severance Agreement also included a

new provision that she forfeit all of her P units in Capital. 14 In case there was any 13F

doubt, the “re” line of the Severance Agreement conveying all of this was

“Separation and Forfeiture.”

11 Pl.’s Letter Regarding Opp’n to Defs.’ Disc. Protocol at 4-5. 12 Ryan Polk Aff., Ex. B. 13 Compl. ¶17. 14 Compl., Ex. B. 4 Plaintiff’s P units in Capital are not even mentioned in her 2021 Employment

Agreement. Capital is nowhere identified as her employer. But most surely,

Paragraph 3 of the Severance Agreement tendered to her in January 2023 required

her to agree that “no consideration will be given to you for the cancellation and

forfeiture to the Company of the Forfeited Interests.” 15 14F

The Severance Agreement then appended a General Release that changed

some of the terms from the earlier General Release attached to her initial

Employment Contract. For example, it included a proviso that the General Release

was an agreement to all of the terms in the “Severance Agreement” she was being

asked to sign on January 31, 2023, which included the forfeiture of the P units noted

above. Moreover, the new General Release released not only Kelly Cable and Peak

Utility Services – as called for in the original General Release – but also “its

affiliates, subsidiaries and direct or indirect parent entities and all present, former

and future directors, officers, agents, representatives, employees, successors and

assigns of the Company and/or its affiliates, subsidiaries and direct or indirect parent

entities.” 16 In other words, she was being asked to release Capital from any 1 F

responsibility concerning the P units as a new condition precedent to receiving the

severance benefits promised in her Employment Contract.

15 Id. 16 Id. 5 II. PROCEDURAL HISTORY

Plaintiff filed her Complaint in this Court and Defendants answered. In their

Answer, Defendants admitted that they terminated Robinson without cause. 17 16F

There followed a motion for summary judgment by the Plaintiff, arguing that

Defendants breached the Employment Contract by failing to tender to her a General

Release that was in “substantially similar form” as the General Release in the

Employment Contract because requiring her to forfeit her P units was a material

change, not required by existing law. 18 Plaintiff also argued that any suggestion that 17F

the basis for her termination could later be changed to “for cause” due to after

acquired evidence of misconduct was too little, too late as Defendants had already

materially breached the agreement by not tendering a proper General Release. 19 18F

Finally, Plaintiff pointed out that the employment agreement regarding COBRA

benefits was not contingent on signing a General Release and her right to

Defendants’ payment of those premiums was complete upon her termination without

cause. 20 19F

17 Defs.’ Answer ¶17. 18 Pl.’s Mot. Summ. J. ¶¶19-22. 19 Id. ¶¶23-25. 20 Id. ¶26. 6 Defendants responded to Plaintiff’s motion by arguing that summary

judgment was premature as discovery had not been taken. They included an affidavit

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