Although defendants argue that third-party defendant Tedder subsequently became an officer of defendant Davis Funeral Service, Inc. (DFS), she negotiated the alleged “sweetheart deal” for the purchase of a car from DFS as part of her employment contract with DFS, when she clearly owed DFS no fiduciary duty. The court rejects defendants’ unsupported theory that, once Tedder became a corporate officer, she was required to renegotiate her preexisting employment agreement.
Tedder’s motion for summary judgment is granted as to defendants’ claims against her and as to her claim that defendants violated the Wage and Hour Act by failing to timely pay her final month’s wages. However, the motion is denied as to Tedder’s claim for double damages under the Wage and Hour Act.
Viewed in the light most favorable to DFS, some evidence suggests that the company issued Tedder’s final paycheck from its closed bank account by accident, not on purpose. Other evidence suggests that the company waited to reissue the paycheck only temporarily while it investigated what it believed was misconduct by plaintiff and Tedder. Taken together, this evidence raises a genuine issue of material fact concerning whether DFS acted in good faith and had reasonable grounds to believe that its actions did not violate the Wage and Hour Act.
The court will decide the issue of damages, including whether Tedder is entitled to liquidated damages, after trial.
Davis v. Davis Funeral Service, Inc. (Lawyers Weekly No....
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