Facts

On March 1, 2013, plaintiff Apollo Couriers entered into a written Client Payroll and Administrative Services agreement with defendant ISHR LLC.

Plaintiff filed suit against defendant in relation to the agreement.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that under the agreement, defendant agreed, among other things, to timely prepare all federal and state payroll tax returns and forms, state unemployment for plaintiff in accordance with all applicable federal, state, and local laws. Defendant also agreed that upon plaintiff paying defendant's payroll invoice amounts, timely forward on behalf of plaintiff all federal and state income tax withholdings, including, but not limited to unemployment taxes, in accordance with all applicable federal, state and local laws.

Subsequently, in early 2014, plaintiff discovered that defendant had wrongfully withdrawn from plaintiff's payroll account for the 2013 calendar year over $157,687 in state and federal unemployment taxes in excess of the amount required by applicable federal, state, and/ or local laws. Plaintiff contended that defendant was entitled to take a service fee of 1.25 percent of plaintiff's gross payroll for the services it rendered on behalf of plaintiff and not more. Plaintiff alleged that defendant overbilled plaintiff by more than $157,687. At trial, plaintiff's witnesses, including two of defendant's employees, testified that the parties only agreed on a 1.25 percent service fee and there was never any discussion regarding whether the contract would be bundled or unbundled.

Therefore, plaintiff filed suit alleging conversion, breach of contract, breach of fiduciary duty, constructive fraud, accounting and declaratory relief.

DEFENDANT/CROSS-COMPLAINANT'S CONTENTIONS:
Defendant denied the over withdrawal, stating that it had been taken as profits because the contract was "bundled" and therefore defendant was entitled to a flat fee of 15.9 percent of plaintiff's payroll.

Result

Following a bench trial, the court found that defendant was liable for breach of contract and ordered that judgment be entered in favor of plaintiff and against ISHR LLC, in the amount of $157,687, plus interest at 10 percent per annum from Jan. 1, 2014. The court further stated that plaintiff is entitled to attorney fees and costs. Plaintiff was awarded a total sum of $303,214, which included $157,687 in principal, $30,197 in prejudgment interest, $111,660 in attorney fees, and $3,663 costs.

Other Information

Plaintiff's motion for attorney fees was granted. FILING DATE: June 17, 2014.