Gregg Miller v. Karcher Environmental Inc., Ben Karcher
Published: Aug. 13, 2002 | Result Date: May 24, 2002 | Filing Date: Jan. 1, 1900 |Case number: 00CC10913 Verdict – $4,270,550
Judge
Court
Orange Superior
Attorneys
Plaintiff
Geniene B. Stillwell
(Stillwell Law Office PC)
Defendant
Robert D. Vogel
(Jackson Lewis PC)
Donna E. Kirkner
(Law Office of Donna E. Kirkner)
Facts
The plaintiff was employed with the defendant corporation from 1989 to 1999 working his way steadily up the
corporate ladder from estimator trainee to Vice President.
In November 1997, the President and owner of defendant Karcher Environmental Inc. (KEI), co-defendant Ben
Karcher, agreed to begin compensating the plaintiff based on a formula representing 30 percent of the
company's profits.
The plaintiff also contended that co-defendant Ben Karcher promised to sell to the plaintiff all Karcher's shares
in KEI in six years at an agreed-upon price, and all Karcher's shares of a sister corporation, Karcher Insulation
Inc., in ten years, also at an agreed-upon price.
Karcher contended that a sale of the two companies was discussed but not finalized.
Two years later, in October 1999, KEI terminated the plaintiff's employment, purportedly due to a manpower
reduction in force.
Thereafter, the co-defendant Karcher refused to pay the plaintiff the profits he was owed for the last year he
worked, fiscal year 1999.
After his termination, the plaintiff started his own successful environmental remediation
business, Miller Environmental, Inc..
Settlement Discussions
The defendant refused to participate in settlement discussions or mediation prior to the jury verdict on damages. The plaintiff made a C.C.P. 998 demand prior to phase I of $400,000 to Ben Karcher and $600,000 to KEI. The defendants made a C.C.P. 998 offer to the plaintiff prior to phase I, offering to have judgment taken in the defendant's favor in the amount of $150,000. Prior to phase II, the defendant made a 998 offer to have judgment entered in the plaintiff's favor in the amount of $100,000. The plaintiff offered to settle during the Phase II trial for $950,000, but the defendant did not respond. After the jury reached a verdict in the case, both parties reached an confidential settlement through mediation. __The trial was bifurcated by stipulation into Phase 1 (liability) and Phase 2 (damages). In Phase 1 the court granted non-suit on the plaintiff's claim for breach of agreement to sell the company against Ben Karcher based on the statute of frauds. The jury found for the plaintiff on his claims for breach of implied contract and breach of the covenant of good faith and fair dealing. The jury found against the plaintiff on his claim for fraud against Ben Karcher. In Phase 2, a different jury awarded $3,872,040 for lost wages and benefits due to wrongful termination, and $398,511 for unpaid wages. The jury found the defendant's failure to pay wages was willful, thereby entitling the plaintiff to 30 days of wages as a penalty under California Labor Code Section 203. The plaintiff was also entitled to attorneys' fees (Labor Code 218.5) an interest on unpaid wages (Labor Code 218.6), according to the jury. The jury decided in the plaintiff's favor on the cross-claims.
Other Information
PLEASE PROVIDE THE EXPERTISE OF EXPERTS: Steven Gabrielson ___________, Michael Kaplan _________The trial was bifurcated by stipulation into Phase 1 (liability) and Phase 2 (damages). In Phase 1 the court granted non-suit on the plaintiff's claim for breach of agreement to sell the company against Ben Karcher based on the statute of frauds. The jury found for the plaintiff on his claims for breach of implied contract and breach of the covenant of good faith and fair dealing. The jury found against the plaintiff on his claim for fraud against Ben Karcher. In Phase 2, a different jury awarded $3,872,040 for lost wages and benefits due to wrongful termination, and $398,511 for unpaid wages. The jury found the defendant's failure to pay wages was willful, thereby entitling the plaintiff to 30 days of wages as a penalty under California Labor Code Section 203. The plaintiff was also entitled to attorneys' fees (Labor Code 218.5) an interest on unpaid wages (Labor Code 218.6). The Jury decided in the plaintiff's favor on the cross-claims.
Deliberation
4.5 hours
Poll
Phase I, 10-2 (all issues), Phase II, 12-0 (all issues except whether failure to pay was willful (11-1)
Length
13 days
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