 |
 |
to fill out a simple form to connect to Employee Leasing Services in your area.
|
|
|
|
|
Kvidera v. Rotation Engineering and Manufacturing Co.11/8/2005
In this appeal from posttrial motions in a claim for breach of an employment contract and violation of Minn. Stat. § 181.13 (2004), the employer argues the district court: (a) erred in construing the employment contract as terminable for just cause rather than as an at-will contract; (b) erred in applying statutory penalties under Minn. Stat. § 181.13(a), because it provides for penalties only for unpaid wages and commissions and not for an unpaid bonus; and (c) abused its discretion in awarding attorney fees for both common law and statutory claims. We affirm in part, reverse in part, and remand.
FACTS
James Lorence, Sr. is the sole owner of appellant Rotation Engineering and Manufacturing Company. Appellant hired respondent Gregory A. Kvidera as its general manager in March 2001. When respondent was hired, he did not have a written contract, but signed appellant's employee handbook, which provided that respondent was an at-will employee.
In July 2001, Lorence promoted respondent to president of the company. On August 3, 2001, respondent and Lorence signed a document titled, "Employment Contract." Pursuant to the document, respondent became the company's president for a term commencing July 1, 2001, and concluding June 30, 2002. The one-page document set forth a variety of terms regarding respondent's employment, including respondent's title, salary and vacation plan. The document also specifically detailed the criteria used to calculate respondent's annual bonus, including four objective goals and a fifth subjective performance evaluation by designated employees and officers.
As the 2001 employment contract term was about to expire, respondent submitted a proposal for a new contract to Lorence. Following edits by Lorence and Deborah Cooper (the company's bookkeeper and Lorence's daughter), a final document entitled "Employment Contract Between Rotation Engineering and Gregory A. Kvidera" was drafted. Respondent and Lorence signed the document on May 31, 2002. The document provided:
Salary start first pay check in June, 2002
Bonus below is for fiscal year 2003 (Bonus per 2002 contract to be paid as per 2002 contract)
Agreement runs through June 30, 2003.
The document then set forth the terms of respondent's employment including respondent's title, salary, vacation time, and company credit card. As with the 2001 employment contract, the 2002 employment contract included the criteria used to calculate respondent's annual bonus.
On September 9, 2002, appellant terminated respondent without explanation. That same day, respondent contacted appellant's counsel to request written reasons for his termination under Minn. Stat. § 181.233 (2004). Appellant's counsel replied by letter that respondent was terminated due to irregularities in computer equipment and false documentation of expense reimbursement submissions. Respondent believed, however, that he was terminated because Lorence's adult children did not want him to be president.
Respondent commenced a lawsuit against appellant on November 19, 2002. The complaint alleged that appellant breached the 2002 employment contract by terminating respondent without cause and, therefore, owed respondent his bonus and lost wages according to the terms of the employment contracts as well as damages. The complaint also sought relief under Minn. Stat. § 181.13(a) (2004), which provides for a statutory penalty for failure to promptly pay wages. Appellant counterclaimed, alleging that respondent was not entitled to any lost compensation because respondent breached his fiduciary duty, converted company property, and made fraudulent misreprese
Page 1 2 3 4 5 6 7 Minnesota Employee Leasing Services
Employee Leasing Services
|
| |
to fill out a simple form to connect to Employee Leasing Services in your area.
|
|