Selfridge v. Jama

172 F. Supp. 3d 397, 2016 U.S. Dist. LEXIS 38660, 2016 WL 1170964
CourtDistrict Court, D. Massachusetts
DecidedMarch 24, 2016
DocketCIVIL ACTION NO. 13-11108-DPW
StatusPublished
Cited by3 cases

This text of 172 F. Supp. 3d 397 (Selfridge v. Jama) 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
Selfridge v. Jama, 172 F. Supp. 3d 397, 2016 U.S. Dist. LEXIS 38660, 2016 WL 1170964 (D. Mass. 2016).

Opinion

MEMORANDUM AND ORDER

DOUGLAS P! WOODLOCK, UNITED STATES DISTRICT JUDGE

This action arises out of the termination of the plaintiff, Stacie Selfridge, from her employment at Boston Home Health Aides, LLC (“Boston Home Health”), where she served as a manager and allegedly anticipated obtaining an ownership interest in the company. Selfridge seeks declaratory and monetary relief for unpaid compensation, emotional distress, and breach of contract and fiduciary duty claims. The defendants — Boston Home Health, Mohaméd Jama (the chief executive officer), and employees Trida Murray, Bambie Anderson, and Noemi Perez — assert counterclaims alleging Selfridge’S violation of duties to the company and abuse of process. I have before me the parties’ cross-motions for summary judgment, two motions to strike, and the defendants’ motion for a protective order to prohibit the plaintiff from taking two supplemental depositions.

[405]*405LBACKGROUND

A. Factual Background

1. Formation and Membership of Boston Home Health

Boston Home Health, incorporated on January 4, 2010, is a Massachusetts limited liability company formed for the purpose of providing home health care services, nursing services, and related activities. The company is managed by its members, who are authorized to act on behalf of and manage the company. This authorization includes entering into agreements, executing contracts and documents, engaging employees and agents, defining such employees’ duties and compensation, and establishing member and employee benefit and incentive plans. Members are- entitled to distributions from the company “from time to time ... after the Members determine in their reasonable judgment that the Company has sufficient cash in excess of the current and the anticipated needs of the Company to fulfill its business purposes.” Such distributions are made in accordance with each member’s sharing ratio.

The original members of Boston Home Health were Jama, Abdulkadir Mohamed, and Barlin Hassan. Under the terms of the operating agreement, the original members agreed to make initial capital contributions, with Jama contributing $250 and obtaining an initial sharing ratio of-j&, and Mohamed and Hassan contributing $125 each and each obtaining an initial sharing ratio of % The operating agreement permits the addition or withdrawal of members with the written consent of all existing members.1 No additional members have been added since the operating agreement was executed.

2. Selfridge and Other Individual Defendants Join Boston Home Health

Selfridge, Murray, Anderson, and Perez joined Boston Home Health as employees in late 2011, when the company had approximately 25 to 35 patients. Selfridge is a certified occupational therapist assistant who performed primarily ’ ádministrative work for Boston Home'Heálth. Murray is a physical therapist who took on an administrative management role at Boston Home Health in February 2012; Anderson is a registered nurse who served as assistant director of nursing; and Perez performs marketing work.

a. The Employment Agreement

The employment of the four women at Boston Home Health was governed-by an employment agreement that all four signed along with Jama and Liban Ab-dulle, another employee, ■ on February 1, 2012. This agreement was crafted by Attorney Saul Benowitz with the purported intention of governing the parties’ relationships until a dispute between Mohamed (one of the members) and Boston Home Health was resolved. The agreement states that it does not create or confer any membership or ownership interest beyond what is provided for in the operating agreement, and that it is intended “to enable the business of the Company to proceed to the mutual benefit of the parties” without adding new members.

i Management and Compensation Provisions ■

Although’ the employment agreement does not. create new members, it vests [406]*406management authority for the company in Selfridge and Jama as officers, giving Jama the precedential decision where the two officers disagree.2 The employment agreement also sets forth the compensation (including profit sharing), duties -and responsibilities, termination procedures, confidentiality requirements, non-assignment and non-compete requirements, and other employment terms for the employee signatories. It provides that Selfridge, Anderson, Murray, and Perez are each to receive a salary of $2,000, presumably per week. The employee signatories shall also receive “incentive payments” on a quarterly .basis or more .frequently if the officers determine that “the financial condition of the Company” warrants such payment. Selfridge, Anderson, and Murray are each to receive 14.5% incentive payment shares, and Perez is to receive a 6.5%‘ incentive payment share, presumably of whatever funds are authorized to be used for incentive payments. Finally, the agreement provides for officer approval of overtime hours and additional overtime compensation.

di .Termination Procedures

If an employee is terminated, the employment agreement provides for. two compensation scenarios: a termination payment or continued, payment of the employee’s incentive payments. When the employee is terminated by the company for “adequate cause”3 or at the voluntary election of the employee, the company selects the compensation option. When an employee is terminated without adequate cause by agreement of the officers, the employee selects the compensation option.

Incentive payments upon termination are made consistent with the incentive payment shares defined in the agreement. The termination payment consists of “the reasonable present fair, market value of the Employee’s rights to receive Incentive Payments, to the same extent as if said rights were freely assignable.” If the employee voluntarily left or has been terminated for adequate cause, the termination payment is reduced by “twenty-five (25%) of such determined value” and by “any amounts due to Company on account of [any] acts or omissions of the Employee constituting ‘Adequate Cause,’ ”4 and the company may elect to make the payment either in a lump sum of by delivery of a promissory note. If the employee was terminated without adequate cause and opts to receive a termination payment, he or she is entitled to full payment within thirty days of termination.

[407]*4073. Selfridge’s Termination

Selfridge was terminated on October 15, 2012, after approximately eight months of employment at Boston Home Health, through an email from Jama. She contends that she was never informed that her performance was inadequate and instead that she received positive reviews from Murray, who was apparently her supervisor.5

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Bluebook (online)
172 F. Supp. 3d 397, 2016 U.S. Dist. LEXIS 38660, 2016 WL 1170964, Counsel Stack Legal Research, https://law.counselstack.com/opinion/selfridge-v-jama-mad-2016.