Fiebelkorn v. Ikon Office Solutions, Inc.

• Court: U.S. District Court — District of Minnesota
• Writing for the Court: Richard H. Kyle
• Citation: Fiebelkorn v. Ikon Office Solutions, Inc., 668 F.Supp.2d 1178 (D. Minn. 2009)
• Decision Date: 21 October 2009
• Docket Number: Civ. No. 09-143 (RHK/SRN).
• Parties: Kent FIEBELKORN, Plaintiff, v. IKON OFFICE SOLUTIONS, INC., Defendant.

668 F.Supp.2d 1178

Kent FIEBELKORN, Plaintiff, v. IKON OFFICE SOLUTIONS, INC., Defendant.

Civ. No. 09-143 (RHK/SRN).

United States District Court, D. Minnesota.

October 21, 2009.

COPYRIGHT MATERIAL OMITTED

Jason E. Engkjer, Jill A. James, James R. Crassweller, Kalina, Wills, Gisvold & Clark, P.L.L.P., Minneapolis, MN, for Plaintiff.

Gina K. Janeiro, Jackson Lewis LLP, Minneapolis, MN, for Defendant.

MEMORANDUM OPINION AND ORDER

RICHARD H. KYLE, District Judge.

INTRODUCTION

This case, at its core, concerns the alleged failure by Defendant IKON Office Solutions, Inc. ("IKON") to pay commissions to a former employee, Plaintiff Kent Fiebelkorn. Fiebelkorn has asserted eight claims against IKON, four sounding in quasi-contract and four alleging violations of various Minnesota statutes. IKON has counterclaimed, seeking to recover purported overpayments of commissions and alleging that Fiebelkorn has failed to return its confidential and proprietary information. IKON now moves for summary judgment on each of Fiebelkorn's claims, while Fiebelkorn has cross-moved for summary judgment on certain of his claims and all of IKON's counterclaims. For the reasons set forth below, the Court will grant IKON's Motion in part and deny it in part and deny Fiebelkorn's Motion.

BACKGROUND

Most of the relevant facts are undisputed. Accordingly, the background is recited herein without citations to the record, except where a fact is in dispute.

IKON is a multi-national dealer of copy machines and office equipment. Fiebelkorn worked for IKON as a sales representative beginning in January 2004. In June 2007, he accepted a newly created position called "Major Account Executive-Graphic Arts." In this position, he earned an annual salary plus commissions for sales he produced. The commission on each sale hinged on several factors, including inter alia its terms and the type of equipment sold.

Fiebelkorn's commission structure was set forth in a document entitled the "FY 2008 Compensation Plan for Major Account Executives Graphic Arts" (the "Plan"). The Plan is, charitably speaking, a complicated document that awards commissions using a confusing calculation system. Four portions of the Plan are most relevant here.

First, the Plan provides that a sales representative is not entitled to a commission until after equipment has been delivered to the customer, installed, and the customer is invoiced for the purchase. Second, the Plan provides that a sales representative must be employed on the date the customer is invoiced to be entitled to a commission. Third, the Plan permits changes to be made to the commission earned on a sale, but only with "approv[al] in writing or via electronic approval by the Area VP with copies to the Region Director of Sales and [IKON's] Commissions Administration Department." Fourth, the Plan permits IKON to adjust and "charge back" a commission paid to a sales representative if it "ha[s] not been earned under the terms and conditions of" the Plan.

On March 19, 2008, IKON terminated Fiebelkorn's employment because he did not have a valid driver's license. He was informed of his termination at a meeting attended by Cindy Marty, his direct supervisor; Bobby Wray, Marty's boss and an IKON Area Vice President for the Minnesota/Iowa area; and Michael Haber, a representative from IKON's human-resources department. At the time of his termination, Fiebelkorn had not received commissions for at least two sales that had already been completed and invoiced.¹ In addition, he had several other sales not yet finalized but nearing completion. He demanded that he receive commissions for those other sales, which were "in the pipeline." (Fiebelkorn Aff. ¶ 13; Second Fiebelkorn Aff. ¶ 8; Fiebelkorn Dep. Tr. at 124-25.)² Wray discussed those pending sales with him and promised to pay commissions on the "pipeline" accounts as long as he helped transition them to other IKON representatives, to ensure that the business was not taken elsewhere. (Fiebelkorn Dep. Tr. at 124-25, 210; Second Fiebelkorn Aff. ¶ 10; Marty Dep. Tr. at 61-64.) Fiebelkorn did as promised and took steps to transition these accounts, including placing telephone calls to certain customers and accompanying IKON employee Brian Balow on a sales visit to another. (Second Fiebelkorn Aff. ¶¶ 12-17.) Ultimately, at least two of these "pipeline" accounts—Absolute Print Graphics and ServicePrinters—completed their purchases and were invoiced by IKON after March 19, 2009, Fiebelkorn's last day of employment.

On March 25, 2008, Fiebelkorn emailed Wray asking when he would receive his final paycheck, including pay for "the deals that are in the works." After Wray did not respond, Fiebelkorn re-sent his email on March 27, 2008. Wray sent a terse reply, asking Fiebelkorn to "call [him] on Monday." The next day, a regularly scheduled pay day, IKON issued Fiebelkorn a check for his earned salary, vacation pay, and commissions on certain sales that were invoiced before his employment ended, but not any of the "pipeline" deals.

Fiebelkorn emailed Wray again on April 7, 2008, asking for his year-to-date sales numbers. Wray did not respond. Fiebelkorn sent Wray another email on April 10, 2008, requesting an accounting of his commissions due. The following day (another regularly scheduled pay day), IKON issued Fiebelkorn a check for additional commissions, but yet again only for sales invoiced before his employment ended.

On April 15, 2008, Haber emailed Fiebelkorn. Attached to his email was a document styled "Agreement and Release," in which IKON agreed to pay Fiebelkorn $6,379 in exchange for a release of any claims he might have against the company. The Agreement and Release noted that "a dispute ha[d] arisen between the Parties." Haber asked Fiebelkorn to execute the document to "resolv[e] any/all outstanding commission issues."

Fiebelkorn refused to sign. Instead, he emailed Wray and Haber, questioning why he had been sent "legal documentation" and further questioning why IKON was "calling this a dispute." He stated that without any of the information he had been repeatedly requesting from Wray, he could not tell whether $6,379 was a valid calculation of the commissions he was owed. He again asked IKON to pay him the commissions "committed to" by Wray for his pipeline deals. He received no response. He re-sent the email on April 22, 2008, asking for resolution of the matter by April 25, 2008. Again, IKON did not respond.

Over the ensuing months, Fiebelkorn continued contacting IKON demanding his commission payments, although the exact extent of his efforts is unclear. He heard nothing until November 14, 2008, when he received a letter from Kim Castagnetta, who had replaced Wray as IKON's Area Vice President for Minnesota/Iowa. Her letter stated:

Dear Mr. Fiebelkorn:

Pursuant to our ongoing discussions with you, we have conferred with IKON's commissions group to verify your unpaid commissions.

To that end, enclosed please find a check for $3,033.01 for qualifying sales prior to your termination from the company. This payment includes $2932.22 commissions and $100.79 compound interest at the rate of 6% and is made in accordance with IKON's commission plan.

Enclosed with the letter was a check for $1,853.17. No explanation how IKON had calculated that amount or, more importantly, what sales were included therein was provided in the letter.³

Fiebelkorn, through counsel, returned the check to IKON and then commenced the instant action. In his Complaint, he asserts eight claims against IKON, which can be grouped into two categories: quasi-contract and Minnesota statute. In the former, he asserts claims for unjust enrichment (Count III), quantum meruit (Count IV), promissory estoppel (Count V), and implied contract in fact (Count VI) due to IKON's failure to pay commissions on the "pipeline" deals. In the latter, he asserts that IKON's conduct violated several state employment laws, namely, Minnesota Statutes Sections 181.03 (Count I), 181.13 (Count II), 181.032 and 177.30 (Count VII), and 181.961 (Count VIII). IKON answered the Complaint and asserted three counterclaims; it alleges that it overpaid Fiebelkorn commissions in connection with a December 2007 sale but, despite demand, he refuses to return the overpayment. It asserts claims for breach of contract (Counterclaim I) and conversion (Counterclaim II) as a result. In a separate breach-of-contract claim (Counterclaim III), IKON alleges that Fiebelkorn breached a Confidentiality Agreement by retaining its confidential information.

Fiebelkorn now moves for summary judgment on three of his statutory claims—Count I, Count II, and Count VII—as well as all of the Counterclaims. IKON has cross-moved for summary judgment on all eight of Fiebelkorn's claims.

STANDARD OF REVIEW

Summary judgment is proper if, drawing all reasonable inferences in favor of the nonmoving party, there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party bears the burden of showing that the material facts in the case are undisputed. Id. at 322, 106 S.Ct. 2548; Mems v. City of St. Paul, Dep't of Fire & Safety Servs., 224 F.3d 735, 738 (8th Cir.2000). The Court must view the evidence, and the inferences reasonably drawn from it, in the light most favorable to the nonmoving party. Graves v. Ark. Dep't of Fin. & Admin., 229 F.3d 721, 723 (8th Cir.2000); Calvit v. Minneapolis Pub. Schs., 122 F.3d 1112, 1116 (8th Cir.1997). The nonmoving party may not rest on mere allegations or denials, but must show through the presentation of admissible evidence that specific facts exist creating a genuine issue for trial. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 256, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Krenik v. County of Le Sueur, 47 F.3d 953, 957 (8th Cir.1995).

Where, as...