Andrew Richter v. Silverman Holdings, LLC, Michael Silverman
Published: Jul. 22, 2006 | Result Date: Mar. 15, 2006 | Filing Date: Jan. 1, 1900 |Case number: BC322785 Verdict – $103,570
Facts
In 2004, the plaintiff's wife sold her furniture manufacturing business to Silverman Holdings LLC. The plaintiff continued to work at the manufacturing facility for Silverman Holdings LLC as director of design. In 2005, the plaintiff resigned his employment and claimed that Silverman Holdings LLC refused to pay his regular and overtime wages and that Silverman Holdings LLC and its owner, Michael Silverman converted his property to his/their own use.
Contentions
PLAINTIFF'S CONTENTIONS:
The plaintiff contended that Silverman Holdings, LLC agreed to pay him a salary. However, Silverman Holdings, LLC failed to pay his salary on a regular basis and in fact made irregular payments in various amounts to him throughout his employment.
The plaintiff contended that Silverman Holdings, LLC owed him regular wages for not paying the salary as agreed and that Silverman Holdings, LLC owed him overtime wages because he was a non-exempt employee. Specifically, the plaintiff contended that the two-part test for exempt status was not satisfied because less than 50 percent of his job duties were within the administrative or executive categories and that he was not actually paid a "salary" as that term is defined by applicable law.
The plaintiff further contended that when he resigned his employment, Silverman Holdings, LLC and the company's owner, Michael Silverman, refused to return personal property (primarily antique furniture) he stored at the manufacturing facility.
DEFENDANT'S CONTENTIONS:
The defendant contended that it entered into an agreement to employ both plaintiff and his wife. It contended that the agreement was that Silverman Holdings, LLC would pay a gross amount to plaintiff and his wife, which would include wages, car expenses, advances and other payments.
The defendant also contended that it paid the plaintiff more than he was entitled under this agreement and that the plaintiff was not entitled to overtime compensation because he was an exempt manager. The defendant contended that the plaintiff sold the antique furniture to Silverman Holdings, LLC when the business was sold. The defendant contended that the furniture had little or no value.
Settlement Discussions
Jim Adler mediated the case and an MSC was held before Justice Armand Arabian. The defendant offered no monetary consideration throughout the litigation.
Damages
The plaintiff claimed economic damages consisting of lost wages ($63,470), overtime ($124,615) and the fair market value of the property ($244,410).
Result
Verdict for $103,570 ($18,570 for unpaid wages and $85,000 for the value of the converted property). Nothing awarded as to overtime. Pre-judgment interest in the amount of $17,068. The Court also awarded plaintiff attorney's fees in the amount of $75,000.
Deliberation
two days
Poll
11-1 (wage claim), 10-2 (conversion)
Length
five days
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