Wright v. Cumberland County Recreation

CourtSuperior Court of Maine
DecidedJuly 7, 2017
DocketYORcv-16-240
StatusUnpublished

This text of Wright v. Cumberland County Recreation (Wright v. Cumberland County Recreation) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wright v. Cumberland County Recreation, (Me. Super. Ct. 2017).

Opinion

STATE OF MAINE SUPERIOR COURT YORK, SS. Civil Action Docket No. CV-16-240

ROBERT WRIGHT, et al.,

Plaintiffs,

V. ORDER

CUMBERLAND COUNTY RECREATION DISTRICT D/B/A THE CROSS INSURANCE ARENA AND CUMBERLAND COUNTY,

Defendants.

Defendant Cumberland County Recreation d/b/a the Cross Insurance Arena ("CCRD")

moves to dismiss plaintiffs' complaint, brought on behalf of themselves and all similarly situated

individiuals, for failure to state a claim. CCRD argues that plaintiffs are not entitled to the

severance payments they seek under the Maine Severance Pay Act ("MSP A" or the "Act")

because they do not-and cannot-allege that CCRD ceased operations at the Cross Insurance

Arena (the "Arena"). The present motion turns on the determination of whether severance

payments are triggered by the cessation of operations by a particular employer or the cessation of

operations at a covered establishment. Because the court determines that severance payments are

triggered by the cessation of operations at a covered establishment, the court grants the motion to

dismiss. 1

I. Facts

Plaintiffs bring the present action for unpaid severance payments pursuant to 26

M.R.S. § 625-B on behalf of themselves and others similarly situated. (Compl. ,r 12.)

1 The court, therefore, need not and does not address plaintiffs' motion for class certification or CCRD's motion to stay class certification.

1 Plaintiffs seeks to represent a class consisting of all non-union employees formerly

employed by CCRD who had been employed continuously for three years or more prior to

their termination on or about March 8, 2015. (Id. ,r 13.) There are a total of approximately

121 non-union employees who fitthe above description. (Id.)

At all relevant times, CCRD and Cumberland County owned and operated a facility

formerly known as the Cumberland County Civic Center and now called the Cross

Insurance Arena. (Compl. ,r,r 23-24.) CCRD is a quasi-governmental entity organized under

the laws of Maine. (Id. ,r 10.)

The Arena employed 100 or more people until it ceased commercial operations

effective March 8, 2015. (Id. ,r,r 25-27.) CCRD terminated the employment of all members

of the purported class by letter dated February 25, 2015. (Id. ,r 28.) After CCRD ceased

operation of the Arena, it retained ownership of the facility, but contracted with Global

Spectrum ("Spectra") to manage and operate the facility. (Id. ,r 30.) As of March 9, 2015,

Spectra became the sole employer of any personnel employed at the Arena. (Id.)

The Contract between CCRD and Spectra provides, 2 in pertinent part, "It is

acknowledged by the parties that this Agreement is not a lease. [CCRD] will at all times

retain Ownership of the Facility, including but not limited to real estate, technical

equipment, furniture, displays, fixtures and similar property...." (Attachment 2 to Mot.

Dismiss, March 9, 2015 Contract (hereinafter, the "Contract").) CCRD's budget is governed

by a public warrant process on an annual basis per law, and the Contract obligates Spectra

to abide by CCRD's Operating Budget. (Id. at 16.) Revenue from ticket sales and other

z Although the contract between CCRD and Spectra is outside the pleadings, the court considers it because it is central to the plaintiffs' claim, referenced in the complaint, and plaintiffs do not object to its consideration. See e.g. Moody v. State Liquor & Lottery Comm'n, 2004 ME 20, ,r,r 8-10, 843 A.2d 43.

2 events are deposited into CCRD's Operating Account, and Spectra uses funds from the

Operating account to pay "all items of expense for the operation, maintenance, supervision

and management of the Facility." (Id. at 17.) Additionally, the Contract provides:

All Facility staff and other personnel shall be engaged or hired by [Spectra], and shall be employees, agents or independent contractors of [Spectra] (or an Affiliate thereof,) and not of [CCRD]. With respect to any current Facility staff and personnel as of the date of this Agreement, [Spectra] will recognize and use the tenure of such staff and personnel for the purpose of calculating vacation time and sick time to be earned under [Spectra's] employee manual.. .. [Spectra] agrees to offer full time employment to current full-time Facility employees as of the Effective Date of this Agreement [March 9, 2015] and further agrees to retain such employees who have accepted [Spectra's] offer of employment on its roster for a period of six (6) months, except that [Spectra] may terminate any such employee for cause at any time, and [Spectra] may further terminate any such employee for any reason other than for cause during that six (6) month period, provided that [Spectra] agrees to pay any such employee who had been employed by [CCRD] for three (3) or more years, as an Operating Expense, severance pay at a rate of one week's pay (defined herein as 1/52nd of the employees total base wages in 2014) for every full year such employee was previously employed by [CCRD].

(Id. at 13, § 6.1.)

All members of the class who wanted to work for Spectra were required to apply for

employment after CCRD terminated their employment and contracted with Spectra to

manage and operate the Arena. (Compl. ,r 31.) Spectra hired many, but not all of the class

members who formerly worked at the Arena and who applied for work with Spectra. (Id. ,r

32.) Class members received their last paychecks from the Arena on or about March 13,

2015, for all hours worked through March 8, 2015. (Id. ,r 33.) As of March 8, 2015, class

members' eligibility for benefits received through their employment with CCRD ceased,

including their rights to the CCRD health insurance, dental insurance, and participation in

the CCRD 457 and 401(K) plans. (Id. ,r 34.) Class members who had taken out loans from

CCRD's 457 plan were required to repay those loans upon or soon after the termination of

3 their employment on or about March 8, 2015. (Id. ,r 35.)

The terms and conditions of employment for employees hired by Spectra to work at

the Arena were different than those under CCRD including that class members:

1) No longer enjoy just cause protection from discipline or discharge, a right they were guaranteed by law as employees of the CCRD' 2) Had to give up or forego outside employment that never previously was considered to conflict with CCRD duties; 3) Receive five fewer paid holidays (8 rather than 13); 4) Are paid biweekly rather than weekly; 5) Pay considerably more for health insurance, particularly for family coverage;3 6) Are no longer able to participate in the CCRD's 457 or 401(K) plans and are covered under a new Spectra 401 (K) plan only after a 90-day waiting period; 7) May no longer take "comp" time in compensation for excess hours worked during peak work periods; 8) Work in different job titles than they held previously, perform substantially different duties for Spectra, or both; 9) Perform new duties with essentially no training from Spectra and when hired received little to no communication from Spectra about its expectations; 10) If salaried were required to undergo a drug test and criminal background check, if hourly, depending on number of hours worked, were also required to undergo a drug test and criminal background check; and 11) In at least some positions, are required to work significantly more hours than previously and, in some instances, are treated as hourly employees even though previously treated as salaried.

(Id. ,r 36.)

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