Tal v. Computech International, Inc.

CourtDistrict Court, E.D. New York
DecidedNovember 20, 2024
Docket2:21-cv-05773
StatusUnknown

This text of Tal v. Computech International, Inc. (Tal v. Computech International, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tal v. Computech International, Inc., (E.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK

HILLEL TAL,

Plaintiff, MEMORANDUM & ORDER 21-cv-05773 (NCM) (SIL) – against – COMPUTECH INTERNATIONAL, INC., Defendant.

NATASHA C. MERLE, United States District Judge: Plaintiff Hillel Tal brings this diversity action alleging breach of contract by defendant Computech International, Inc. (“Computech” or “CTI”). Jurisdiction is proper under 28 U.S.C. § 1332. The Court previously granted defendant’s motion to dismiss plaintiff’s New York Labor Law (“NYLL”), unjust enrichment, and declaratory judgment claims. Mot. to Dismiss Order, ECF No. 40. Defendant now moves for summary judgment on plaintiff’s remaining breach of contract claim. Mot. for Summ. J., ECF No. 55.1 For the reasons stated below, defendant’s Motion is GRANTED. BACKGROUND A. Overview of Plaintiff’s Employment CTI is a small business, founded in 1994, of which Eyal Shachi is co-owner and CEO. Pl.’s Local Civ. R. 56.1 Counter-Statement of Undisputed Material Facts ¶ 3, ECF

1 The Court hereinafter refers to the Memorandum of Law in Support of defendant’s Motion for Summary Judgment, ECF No. 56, as the “Motion”; plaintiff’s Memorandum of Law in Opposition, ECF No. 57, as the “Opposition”; and the Reply Memorandum of Law in Support of defendant’s Motion for Summary Judgment, ECF No. 58, as the “Reply.” No. 57-1 (“56.1 Statement”).2 CTI provides technology solutions and produces computer “components and systems, imaging and printing products, storage components and systems, and surveillance and security video products with commercial and military application.” 56.1 Statement ¶ 4. It also manufactures, assembles, and delivers “mechanical solutions” based on client-supplied product drawings (the “build to print”

service). 56.1 Statement ¶ 4. Plaintiff was employed at CTI from 2009 through his voluntary resignation in May 2021. 56.1 Statement ¶¶ 5, 31. CTI initially hired plaintiff as a Director of Business Development and subsequently promoted him to Vice President of Business Development on or about April 11, 2014. 56.1 Statement ¶¶ 5, 11. In both roles, plaintiff was responsible for managing projects generated by “customer orders.” 56.1 Statement ¶¶ 6, 9; Oral Arg. Tr. 26:12–27:7 (draft on file with court). His duties included soliciting clients to purchase CTI’s products and services (in particular, the build to print service); overseeing production, fulfillment, and delivery of customer orders; and managing client relationships. 56.1 Statement ¶ 6. Plaintiff sourced orders, located components and products, negotiated with vendors, serviced manufacturing suppliers, coordinated

product build-outs, and coordinated shipping schedules, all to deliver CTI services and products as contemplated in customer orders. 56.1 Statement ¶ 6. For his work, plaintiff was compensated through both an annual base salary and commissions. 56.1 Statement ¶ 7. The parties dispute at what point plaintiff earned his commissions: plaintiff contends that his commission was earned “solely for bringing in new business,” Decl. of Hillel Tal ¶ 8, ECF No. 57-2 (“Tal Decl.”), while defendant

2 The following material facts, drawn from the parties’ Local Civil Rule 56.1 Statements and evidentiary submissions, are undisputed unless otherwise noted. contends that plaintiff earned commissions as a percentage of the “net profit realized by CTI” on plaintiff’s projects for the preceding calendar year, see Decl. of Eyal Shachi ¶¶ 6– 8, ECF No. 56-5 (“Shachi Decl.”). B. The April 2014 Negotiations On April 11, 2014, plaintiff and Shachi met in person to discuss, among other

things, plaintiff’s compensation. 56.1 Statement ¶ 11; Ex. C 1, ECF No. 56-6 (“Apr. 2014 Email”).3 The following day, plaintiff sent Shachi an email containing two documents: a “Summary of Discussion,” which memorialized a series of “understandings” plaintiff believed the parties had reached, and a document titled “Agreement of Understanding 4/12” meant to outline a “compensation mechanism” the parties had discussed the previous day. 56.1 Statement ¶ 12; Apr. 2014 Email 1–3. Shachi neither signed the agreement nor responded to the email. 56.1 Statement ¶¶ 12, 13. Regardless, plaintiff maintains that the April 2014 Email reflects an enforceable oral agreement made between the parties. See, e.g., Opp’n 4 (“CTI bears the consequences, as the employer, of failing to obtain a written and signed agreement containing the terms as required by the New York Labor Law.”); Oral Arg. Tr. 19:3–17.

The unsigned Agreement of Understanding 4/12 described a compensation structure for projects and orders generated by plaintiff from customers that he “brought to the table.” Apr. 2014 Email 3. It also “added” how plaintiff would be paid for certain commissions in the event of employment termination. 56.1 Statement ¶ 12. Specifically, plaintiff claimed to be entitled to post-termination commissions for compensation CTI

3 Where necessary, page numbers for the Motion, Opposition, and Reply refer to the page numbers assigned in ECF filing headers. earned from all of his customers’4 projects, so long as those projects had a “valid [purchase order] or a Letter of Intent” within 45 calendar days from his final day of employment. Apr. 2014 Email 3.5 C. Subsequent Failed Negotiations Though Shachi had not responded to the April 2014 Email, plaintiff continued to

serve as Vice President of Business Development with the understanding that the terms discussed in the parties’ April 2014 negotiations were in effect. Tal Decl. ¶¶ 9, 10. CTI continued to pay plaintiff annual commissions. 56.1 Statement ¶ 7. Approximately four years later, in 2018, the parties discussed a new “Sales Commission Agreement.” 56.1 Statement ¶ 15. They did not come to an agreement at this time and continued operating under their “existing arrangement” (although the parties dispute the terms of that arrangement). 56.1 Statement ¶ 20. In 2020, plaintiff again approached Shachi about his “desire to have a formal commission agreement that would, among other things, provide for post-termination commissions.” 56.1 Statement ¶ 21. In an email to Shachi dated June 9, 2020, plaintiff forwarded his summaries of the parties’ April 2014 discussions and attached a new

agreement that he believed “capture[d] our understandings.” Ex. E 1–2, ECF No. 56-8 (“June 2020 Email”). This “Sales Compensation Agreement” stipulated that, if plaintiff

4 Plaintiff also details customers belonging to him, including “Beth El Industries and its subsidiaries,” and “IAI/ELTA and its subsidiaries.” Apr. 2014 Email 3.

5 The “Agreement of Understanding 4/12” states these terms in less clear language. Plaintiff summarizes the parties’ understanding as follows: “In case my employment at CTI is terminated/ending by either side: All projects from customers that belong to me and have a valid [purchase order] or a Letter of Intent or if a [purchase order] is received within 45 calendric days from my last day of employment at CTI –will entitle me for the agreed complete project’s compensation above since the project was already secured and granted to CTI.” Apr. 2014 Email 3. resigned or was terminated, he would be owed “compensations from Profits earned by CTI from [plaintiff’s] Customers, Build to Print, and any other projects included” in two attached exhibits. June 2020 Email 7. The draft agreement was not executed. Tal Decl. ¶ 8. For weeks, the parties exchanged drafts of a potential agreement addressing post-

termination commissions. 56.1 Statement ¶ 24. Shachi viewed post-employment restrictive covenants as a condition precedent to any such agreement. 56.1 Statement ¶ 24.

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