Partridge v. Am. Hosp. Mgmt. Co.

289 F.Supp.3d 1

Owen PARTRIDGE, Plaintiff,

v.AMERICAN HOSPITAL MANAGEMENT COMPANY, LLC, et al., Defendants.

Civil Action No.: 17–0248 (RC)

United States District Court, District of Columbia.

Signed December 29, 2017

Steven Michael Oster, Oster Law Firm, Washington, DC, for Plaintiff.

American Hospital Management Company, LLC, pro se.

American Hospital Management Company, LMT, pro se.

Randall D. Arlett, pro se.

OlaDipo A. Akin–Deko, Akin–Deko Professional Services Firm PLLC, Alexandria, VA, for Defendant.

MEMORANDUM OPINION

DENYING PLAINTIFF'S MOTION TO STRIKE; DENYING DEFENDANTS' MOTION TO DISMISS AND TO COMPEL ARBITRATION; GRANTING IN PART AND DENYING IN PART PLAINTIFF'S MOTION FOR SUMMARY JUDGMENT; GRANTING DEFENDANTS' COUNSEL'S MOTION TO WITHDRAW

RUDOLPH CONTRERAS, United States District Judge

I. INTRODUCTION

Plaintiff Owen Partridge brought this action, which seeks to recover unpaid wages against American Hospital Management Company, LLC ("LLC"); American Hospital Management Company, LMT ("LMT"); and Randall D. Arlett, who is President, Chief Executive Officer, and Managing Director of both corporations. Before this Court considered a motion to dismiss and to compel arbitration filed by Defendants or reached the merits of Mr. Partridge's claims, the parties entered into a settlement agreement, which the Court approved and incorporated into a consent decree. Unfortunately, however, entry of the settlement agreement and consent decree did not end this dispute. Several payment deadlines have passed but, according to Mr. Partridge, no money has changed hands. Consequently, the Court has agreed to revisit and rule on the parties' three pre-settlement motions: (1) Plaintiff's motion to strike an errata sheet filed by Defendants, (2) Defendants' motion to dismiss and to compel arbitration, and (3) Plaintiff's motion for summary judgment. Also before the Court is a motion by Defendants' counsel requesting permission to withdraw his representation. For the reasons explained below, the Court denies Plaintiff's motion to strike and denies Defendants' motion to dismiss and to compel arbitration. The Court grants Plaintiff's motion for summary judgment against Defendant LMT on the breach of contract count, but otherwise denies Plaintiff's motion. The Court also grants Defendants' counsel's motion to withdraw.

II. BACKGROUND

Mr. Partridge initiated this action against his former employers—LLC, LMT, and Mr. Arlett—alleging that they have failed to pay him more than $107,000 in wages that he earned managing a hospital facility on their behalf in Tbilisi, Georgia. Compl. ¶¶ 13–14, 23, 37, ECF No. 2. In Count One of his Complaint, Mr. Partridge claims that Defendants breached two separate employment agreements (collectively "the Agreements")—a two-year agreement that he had entered with LMT in December 2015 ("First Agreement") and another agreement that he had entered with either LCC or both LLC and Mr. Arlett in or about August 2016 ("Second Agreement") which purported to ensure strict compliance with the terms of the First Agreement.¹ Id. ¶¶ 14, 23, 25–26, 29, 41–43. Mr. Partridge also contends that Defendants violated the District of Columbia Wage Payment and Collection Law by withholding wages (Count Two) and committed fraud by misrepresenting their intent to perform under the Agreements (Count Three).² Id. ¶¶ 44–57. In addition, Mr. Partridge seeks a judgment declaring that a non-competition provision in the First Agreement is invalid as an unreasonable restraint on trade (Count Five). Id. ¶¶ 65–72. The relevant provisions state:

During the term of [the First Agreement], [Mr. Partridge] shall devote his work efforts exclusively to the performance of this Agreement and shall not, without [LMT's] prior written consent, render to others services of any kind for compensation, or engage in any other business activity that would materially interfere with the performance of his duties under this Agreement. [Mr. Partridge] cannot work directly for Sayali Group D/B/A American Hospital Tbilisi during this time.

.........

During the [First Agreement] term, [Mr. Partridge] shall not, in any fashion participate or engage in any activity or other business competitive with [LMT]. In addition, [Mr. Partridge], while engaged by [LMT] shall not take any action without [LMT's] prior written consent to establish, form, or become employed by a competing business on termination of employment by [LMT]. [Mr. Partridge's] failure to comply with the provisions of the preceding sentence shall give [LMT] the right (in addition to all other remedies [LMT] may have to terminate any benefits that [Mr. Partridge] may be otherwise entitled to following termination of this Agreement.

Compl., Ex. A. at 2–3, ECF No. 2.

"Defendants [LLC] and Randall Arlett" moved to dismiss the Complaint and to compel arbitration. See Mem. Supp. Defs.' Mot. Dismiss for Lack of Subject Matter Jurisdiction, to Compel Arbitration and Failure to State a Claim at 5–8 ("Defs.' Mot. Dismiss"), ECF No. 7. Counsel for Defendants later filed an errata sheet, which clarified that the motion to dismiss had been submitted on behalf of all three Defendants. See Defs.' Erratta [sic] Sheet to Its Mot. Dismiss ("Errata Sheet") at 1, ECF No. 14. The motion to dismiss pointed to an arbitration clause in the First Agreement, which states:

Any controversy or claim arising out of or relating to this Agreement shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and Judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction.... An arbitration hearing shall consist of three arbitrators, one to be chosen directly by each party at will, and the third arbitrator to be selected by the two arbitrators so chosen. Each party shall pay the fees of the arbitrator he selects and of his own attorneys, and the expenses of his witnesses and all other expenses connected with presenting his case. Other costs of the arbitration, including the cost of any record or transcripts of the arbitration, administrative fees, the fees of the third arbitrator, and all other fees and costs, shall be borne equally by the parties. Despite the forgoing, the arbitrators may assign to one party or the other any and all fees and costs as part of any arbitration award.

Compl., Ex. A at 5, ECF No. 2. Defendants also asked the Court to dismiss any claims asserted against Mr. Arlett as an individual, arguing that Mr. Arlett had not signed any agreement with Mr. Partridge in his personal capacity and that no pleading justified piercing the corporate veil to hold Mr. Arlett liable for any actions taken by LLC and LMT. Defs.' Mot. Dismiss at 4–5.

Soon after, Mr. Partridge asked the Court to strike counsel's errata sheet, arguing that LMT had purposely declined to join the motion to dismiss and that an errata sheet could not be used to join a motion to dismiss. See Mot. to Strike Errata Sheet ¶¶ 4–7, ECF No. 15. Mr. Partridge also opposed Defendants' motion to dismiss and to compel arbitration and moved for summary judgment on his claims. See Pl.'s Mem. in Opp'n to Mot. to Compel Arbitration and in Support of Pl.'s Cross–Mot. Summ. J. ("Pl.'s Opp. Mot. Dismiss"), ECF No. 9; Cross–Motion for Summ. J. ("Pl.'s MSJ"), ECF No. 10.

Before considering the pending motions—and at the request of the parties—this Court referred the case for mediation so that the parties could explore the possibility of settlement. See Order Referring Case to Magistrate Judge for Mediation, ECF No. 20; see also Rule 26(f) Report and Joint Proposed Discovery Plan at 3, ECF No. 19 (requesting referral for mediation). While settlement discussions were in progress, Defendants' counsel moved to withdraw his representation, explaining that "Defendant has been unable to abide by the terms of its agreement with counsel." Counsel Mot. To Withdraw ¶ 1, ECF No. 27. Specifically, according to counsel, "Defendants have not fulfilled their obligation to communicate with Counsel." Defs.' Counsel Reply Pl.'s Resp. to Its Motion to Withdraw at 1, ECF No. 32. The "lack of communication has le[d] to a deteriorated attorney-client relationship," counsel claims. Id. at 1–2. Moreover, counsel asserts that Defendants have "outstanding legal bills in arrears." Id. at 2. Counsel maintains that his withdrawal can be accomplished with minimal prejudice. Id. at 3.

On July 10, 2017, with Defendants' counsel's withdrawal motion still under advisement, Mr. Partridge filed a motion with the Court, which supplied the parties' settlement agreement and asked the Court to incorporate its terms into a consent decree.³ See Mot. to Enter Settlement Agreement, ECF No. 28. The settlement agreement—which, per its terms, became enforceable when Mr. Arlett signed it on June 19, 2017—specified that the Defendants would provide Mr. Partridge an initial payment of $50,000 by July 19, 2017. Consent Decree ¶¶ 1, 11, ECF No. 31. "Upon receipt of the Initial Payment," the parties would "release and covenant not to sue each other" and would "lodge a consent decree memorializing these terms and, except as necessary to enforce the decree, dismiss the litigation." Id. ¶¶ 4–5. Thereafter LLC and LMT would pay Mr. Partridge $10,000 each month until the initial and monthly payments totaled $150,000. Id. ¶ 2. If LLC and LMT failed to make a monthly payment on time and failed to cure the default within five calendar days, the agreement established that "the Court shall enter judgment against [the corporations] for the entire unpaid balance plus all costs of collection, including attorney's fees pursuant to D.C. Code § 32–1308." Id. ¶ 6. The parties explicitly "consent[ed] to the continuing jurisdiction of the United States District Court for the District of Columbia unless and until Plaintiff receives Initial and Monthly Payments totaling $150,000."Id. ¶ 10. On July 12, 2017, this Court entered a consent decree, which fully...