Muhammad v. Prince George's Cnty. Bd. of Educ.

246 Md.App. 349

228 A.3d 1170

Davon MUHAMMAD

v.PRINCE GEORGE'S COUNTY BOARD OF EDUCATION

No. 401, Sept. Term, 2019

Court of Special Appeals of Maryland.

June 1, 2020

Submitted by John Christopher Belcher of Oxon Hill, MD., for Appellant.

Submitted by Roger C. Thomas of Greenbelt, MD., for Appellee.

Panel: Kehoe, Leahy, Wells, JJ.

Wells, J. On November 18, 2016, appellant, Davon Muhammad, filed suit against Prince George's County Public Schools ("PGCPS") and appellee, Prince George's County Board of Education ("the Board"), alleging a breach of the parties’ employment contract. At an April 3, 2018 settlement conference, the Board agreed to pay Muhammad $33,500.00 for full and final settlement of all of Muhammad's claims which was documented in a written agreement reached during an alternative dispute resolution session. This agreement was incorporated into a court order and filed with the court clerk. Later, the parties signed a more detailed document entitled, "Settlement Agreement and Release." Thereafter, the Board sent Muhammad a check for the agreed upon amount, with applicable state and federal tax withholdings withheld, for a total of $20,569.00.

Muhammad rejected the check, claiming that the Board had not paid him the full amount agreed upon and moved to vacate the judgment, or in the alternative, to enforce the court's order. The court denied the request. Muhammad then filed a motion to alter or amend, which the court also denied.

Muhammad appeals from the circuit court's denial of his motion to vacate and asks the following questions, which we restate verbatim:

1. Did the trial court err by allowing the Board to reduce its settlement payment to Muhammad by $12,951.00 by classifying Muhammad as an employee even though the Board never permitted Muhammad to work as an employee under the teaching contract?

2. Did the trial court err by considering information contained in the confidential release, even though the confidential release states on its face that it "will not be disclosed to any person or entity, except any person or entity that is statutorily required to have such knowledge"?

We hold that the circuit court did not err in finding Muhammad was an employee of the Board at the time of his termination. Further, the amount Muhammad received from the Board to resolve his breach of contract suit was consistent with the terms of the settlement agreement reached. Additionally, although Muhammad insists otherwise, the circuit court properly reviewed the settlement agreement in rendering its decision. We therefore affirm.

BACKGROUND

Davon Muhammad began his career with the Prince George's County Board of Education ("the Board") in September 2012, working as a substitute teacher and athletic coach. In early July 2016, a human resources representative for Prince George's County Public Schools (PGCPS) informed Muhammad that he would not be retained for the 2016-2017 school year.

In what seemed to be a reversal of that decision, on July 13, 2016 the principal of Walker Mill Middle School, Dr. Nicole Clifton, offered Muhammad a position as a health education teacher subject to a certification review. One week later, on July 20, 2016, an Instructional Staffing Specialist at PGCPS informed Muhammad that, although he was 42 credits shy of a full certification, he could be provisionally approved for a teaching position if the county supervisor for his subject area provided her recommendation. The next day, the county health education supervisor approved Muhammad as a health education teacher.

On July 27, 2016, Muhammad signed a "Provisional Contract for Conditional or Resident Teacher Certificate Holders," ("contract") for the 2016-2017 school year, which was also signed by Kevin M. Maxwell as the Secretary of the Board. The contract expressly stipulated,

If any of the conditions of this contract shall be violated by the certified employee named herein, salary already accrued will be forfeited, in the discretion of the Local Board of Education. The Local Board of Education, pursuant to the provisions of § 6-202 of the Education Article of the Annotated Code of Maryland, as amended, may suspend or dismiss the employee at any time, upon the recommendation of the Local Superintendent ....

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Anything to the contrary notwithstanding, this contract shall terminate if the employee ceases to hold or fails to comply with the requirements for maintaining a teacher's Conditional or Resident Teacher Certificate. However, if the employee is provided a Professional Certificate during the school year for which the contract is in effect, the employee's employment shall continue to be governed by the terms of this contract until its June 30th termination date. [...]

The contract was to take effect on August 15, 2016.

In preparation for the upcoming school year, Muhammad attended three days of training at Dr. Henry A. Wise, Jr. High School on August 8, 9, and 10, 2016; three days of professional development on August 15, 16, and 18; and one day of professional development for health education on August 17.

Muhammad finished his last day of professional development on August 18, 2016. The same day, Dr. Clifton informed Muhammad that, in fact, he would not be working with PGCPS in any capacity for the 2016-2017 school year.

Muhammad subsequently sued the Board for breach of contract, seeking $75,000.00 in compensatory damages. At an alternative dispute resolution ("ADR") meeting held on April 3, 2018, the parties agreed that Muhammad would dismiss his claims against the Board in return for $33,500.00. This ADR agreement was a simple statement that the case was resolved; Muhammad would drop his lawsuit and in return he was to receive the agreed upon sum. The parties signed the ADR agreement and submitted it to the circuit court. The court docketed Muhammad's case as settled by agreement.

Later, the parties signed a document entitled, "Settlement Agreement and Release" ("settlement agreement"). The first paragraph of the settlement agreement reads: "The Board shall pay and Muhammad accepts, as full and final settlement of the above-referenced litigation, the amount of Thirty Three Thousand Five Hundred Dollars, ($35,500.00), less applicable required State and Federal tax withholding , as full and final settlement of all claims." (emphasis supplied). It further states that "Muhammad expressly acknowledges that this General Release includes, but is not limited to, matters specifically complained of and involving the litigation[,] his intent to release the Board from any claim relating to his employment from the Board, or arising from the above-referenced litigation ...." The parties also incorporated a confidentiality clause, mandating that the terms of the agreement "will not be disclosed to any person or entity, except any person or entity that is statutorily required to have such knowledge." Muhammad signed the settlement agreement on April 30, 2018. A representative of the Board signed the document on May 3, 2018.

Soon thereafter, the Board sent Muhammad a check in the amount of $20,569.00, reflecting the deduction of $12,931.00 in state and federal tax withholdings. Muhammad, through his attorney, refused to accept the check, and, instead, requested that the Board send a replacement check for $33,500.00 or provide legal authority for the tax withholdings. The Board declined to provide another check, insisting that Muhammad was paid consistent with the agreement. Muhammad then filed a motion to vacate the settlement agreement and requested the court reset the case on the trial docket, or, in the alternative, order the Board to pay him $33,500.00.

On March 19, 2019, the Circuit Court for Prince George's County held a hearing on Muhammad's motion to vacate. Muhammad argued that he was never a PGCPS employee because "he was never permitted to work day one as a teacher" despite the parties’ signed employment contract. In response, the Board argued that Internal Revenue Service (IRS) required that it withhold applicable federal and state taxes from settlement proceeds paid on back pay. The fundamental question for the circuit court was to determine whether, at the time of the contract's termination, Muhammad was an employee of the Board. At the end of the hearing, the circuit court ruled as follows:

Plaintiff was never hired as – or never worked as a teacher. And there was a complaint filed. An amended complaint was then filed, and the amended complaint referenced the situation as to how Mr. Muhammad entered into that employment contract with Prince George's County Public School System. That while they are seeking money damages, the reference was for money that would have been received had he [been] permitted to teach and coach for the school year, pay increase, and as well as any and all employment benefits. So the breach of contract was based on [the Board's] ... failure to fulfill the employment contract that was entered in.

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And so on April 3rd, 2018, a settlement agreement and release was signed by both parties. ... And the plain terms ... was [sic] that the Board shall pay Muhammad full and final settlement of [$33,500], less applicable required state and federal tax withholding.

While it is true that the County cannot just arbitrarily impose taxes, one exception is if a person is an employee. The underlying basis of this complaint was that the Defendant did not honor the employment contract. It was about Plaintiff being employed as a teacher. It was the monetary award that was sought was based on the salary and income that could have been earned as a teacher and as a coach along with any cost-of-living increase or adjustment that is made.

So the court will find that at the time that the parties entered into the agreement, based on the underlying employment contract, that there was an employer-employee relationship between Davon Muhammad and Prince George's County Public School System.

Additionally, with respect to consummating this

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