Wang v. TDS Group CA6

CourtCalifornia Court of Appeal
DecidedNovember 13, 2014
DocketH038786
StatusUnpublished

This text of Wang v. TDS Group CA6 (Wang v. TDS Group CA6) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wang v. TDS Group CA6, (Cal. Ct. App. 2014).

Opinion

Filed 11/13/14 Wang v. TDS Group CA6 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SIXTH APPELLATE DISTRICT

YA HUI WANG et al., H038786 (Santa Clara County Plaintiffs and Appellants, Super. Ct. No. 1-09-CV152551)

v.

THE TDS GROUP, INC.,

Defendant and Appellant.

I. INTRODUCTION Appellant Ya Hui Wang (also known as Emily Wang) marketed and sold employer-sponsored retirement plans to school district employees through her affiliation with appellant The TDS Group, Inc. (TDS), a retirement plan administrator. Wang and TDS had resolved Wang’s previous wrongful termination action with two settlement agreements that were intended to create their future working relationship. In the present action, Wang alleges that TDS failed to comply with the terms of the settlement agreements. Her complaint includes causes of action for breach of contract, breach of the covenant of good faith and fair dealing, intentional interference with economic relationship, and intentional interference with prospective business relationship. The matter proceeded to a jury trial that concluded in a special verdict awarding Wang more than $4 million on all causes of action. In posttrial motions, the trial court granted TDS’s motion for new trial on the breach of contract cause of action and also granted TDS’s motion for judgment notwithstanding the verdict on the tort causes of action for intentional interference with economic relationship and intentional interference with prospective business relationship. Wang has appealed from both posttrial orders. For reasons that we will explain, we will affirm the order granting TDS’s motion for new trial on breach of contract and dismiss Wang’s appeal of the order granting the judgment notwithstanding the verdict on the tort causes of action for intentional interference with economic relationship and intentional interference with prospective business relationship because the order is nonappealable. TDS has cross-appealed. For reasons that we will explain, we will affirm the August 14, 2012 order denying TDS’s motion for judgment notwithstanding the verdict on the breach of contract cause of action. We also determine that the August 16, 2012 order denying TDS’s motion for new trial on the tort causes of action for intentional interference with prospective economic relations and intentional interference with contractual relations is moot. II. FACTUAL AND PROCEDURAL BACKGROUND A. The Complaint In 2009 Wang brought this action against defendant TDS, a third party pension plan administrator with whom she was affiliated. According to the allegations in the complaint, Wang’s claims in the present action arise from her prior dispute with TDS. Wang had filed a wrongful termination action against TDS in 2004 that included claims for race and sex discrimination, breach of contract, fraud, and other torts. The 2004 action was resolved by the parties entering into two settlement agreements, dated October 26, 2007, and January 31, 2008. Wang alleged that the 2007 and 2008 settlement agreements provided, among other things, that she had the exclusive right to market and sell employer-sponsored

2 supplemental retirement plans for TDS to school employees of specified school districts; a right of first refusal to market and sell the retirement plans in other specified school districts; permission to transfer her book of business to her husband in the event of her death and disability; and the right to determine if the transfer of her book of business to another broker-dealer1 was in her best interest. The settlement agreements also provided that Wang would pay TDS a 7 percent override2 for three years, followed by a 10 percent override thereafter. According to Wang, TDS “wrongly cancelled” the 2007 and 2008 settlement agreements on June 26, 2009, by sending her a termination notice stating that her affiliation with TDS and all of her agreements with TDS were terminated immediately. The termination notice was preceded by a conference call with Robert Lotter, in which Wang was informed that TDS had been sold to Lotter and he was the new CEO. Lotter stated in the conference call that “everyone who wished to stay with TDS must change the existing broker to a new broker-dealer called ‘Questar.’ ” Wang further alleged that in July 2009 the president of TDS, Loy Doug Holt, informed Wang that Lotter was willing to honor the 2007 and 2008 settlement agreements if Wang moved to Questar, the new broker-dealer. In August 2009 Lotter offered to honor the settlement agreements if the override that Wang paid to TDS was increased from 7 percent to 20 percent and Wang waived her right of first refusal to market and sell in Contra Costa County. Wang did not accept Lotter’s offer and in

1 A “broker-dealer” is “a person or a financial company that acts both as a broker, making investments for customers, and as a dealer making investments for themselves[.]” (Cambridge Business English Dictionary (2014) [as of Nov. 13, 2014].) 2 An “override” is defined as “a commission paid to managerial personnel on sales made by subordinates.” (Merriam-Webster’s Online Dict. (2014) [as of Nov. 13, 2014].)

3 September 2009 TDS sent a letter to Wang confirming that her affiliation with TDS was terminated effective June 26, 2009. Based on these and other allegations, Wang asserted causes of action for breach of contract, breach of the covenant of good faith and fair dealing, intentional interference with economic relationship, and intentional interference with prospective business relationship.3 B. Trial Evidence A jury trial was held in 2012. The following is a brief summary of the relevant witness testimony and other evidence presented at trial. 1. TDS School districts are the customers of TDS, which is a third party administrator of supplemental retirement plans for public school employees. Sales advisors, also known as representatives of TDS, sell the supplemental retirement plans. TDS licenses the representatives to use the TDS name and logo and receives a commission from the securities broker-dealer or the insurance company whose product is sold. All of TDS’s representatives work with the same broker-dealer so that TDS can receive the commissions for mutual fund sales. TDS does not receive direct payment of commissions. The broker-dealer pays commissions directly to an individual known as the OSJ (office of supervisory jurisdiction). Loy Douglas Holt and Alonzo Wickers were OSJs for TDS. Their duties as an OSJ included supervising the TDS representatives so that their sales of financial services are done correctly. The broker-dealer has to approve any outside business activities by TDS that do not involve securities sales, such as selling fixed insurance products or working as a plan administrator.

3 The record reflects that the cause of action for breach of the covenant of good faith and fair dealing was not presented to the jury.

4 2. Wang’s Relationship with TDS When Wang began working with TDS as a plan administrator representative, the president of TDS was Holt. Her OSJ was Wickers, who supervised all of TDS’s representatives and approved all of the sales transactions for the retirement plans. Wang carried a TDS business card and was assigned to specific public schools where she would host a presentation to school employees regarding the types of retirement plans that TDS was offering.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Stevens v. Parke, Davis & Co.
507 P.2d 653 (California Supreme Court, 1973)
Sanchez-Corea v. Bank of America
701 P.2d 826 (California Supreme Court, 1985)
Olson v. Cory
673 P.2d 720 (California Supreme Court, 1983)
Jordan v. Talbot
361 P.2d 20 (California Supreme Court, 1961)
Null v. City of Los Angeles
206 Cal. App. 3d 1528 (California Court of Appeal, 1988)
Lacount v. Hensel Phelps Construction Co.
79 Cal. App. 3d 754 (California Court of Appeal, 1978)
Beavers v. Allstate Insurance
225 Cal. App. 3d 310 (California Court of Appeal, 1990)
Don v. Cruz
131 Cal. App. 3d 695 (California Court of Appeal, 1982)
Godfrey v. Steinpress
128 Cal. App. 3d 154 (California Court of Appeal, 1982)
Estate of Weber
229 Cal. App. 3d 22 (California Court of Appeal, 1991)
Gillan v. City of San Marino
55 Cal. Rptr. 3d 158 (California Court of Appeal, 2007)
Mendoza v. Club Car, Inc.
96 Cal. Rptr. 2d 605 (California Court of Appeal, 2000)
Shaw v. Hughes Aircraft Co.
100 Cal. Rptr. 2d 446 (California Court of Appeal, 2000)
Stevens v. Owens-Corning Fiberglas Corp.
49 Cal. App. 4th 1645 (California Court of Appeal, 1996)
Cobb v. University of Southern California
45 Cal. App. 4th 1140 (California Court of Appeal, 1996)
City of San Diego v. D.R. Horton San Diego Holding Co.
24 Cal. Rptr. 3d 338 (California Court of Appeal, 2005)
Zagami, Inc. v. James A. Crone, Inc.
74 Cal. Rptr. 3d 235 (California Court of Appeal, 2008)
Abramson v. Juniper Networks, Inc.
9 Cal. Rptr. 3d 422 (California Court of Appeal, 2004)
Cobb v. University of So. California
32 Cal. App. 4th 798 (California Court of Appeal, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
Wang v. TDS Group CA6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wang-v-tds-group-ca6-calctapp-2014.