YVETTE KANE, District Judge.
On November 17, 2015, Magistrate Judge Carlson issued a Report and Recommendation (Doc. No. 47), in which he recommends that the Court grant Defendants' motion for judgment on the pleadings (Doc. No. 35), and deny Plaintiff's motion for judgment on the pleadings (Doc. No. 34). In relevant part, Magistrate Judge Carlson found that the two employment compensation contracts in question, Plaintiff's Employment Agreement and his Incentive Investment Plan (IIP) could each be enforced in harmony with the other, thereby requiring Plaintiff to abide by both the 18-month non-compete covenant from the Employment Agreement and the 30-month non-compete covenant from the IIP. (
Plaintiff has raised three objections to the Report and Recommendation: (1) that the Employment Agreement superseded the IIP agreement such that Plaintiff was only bound by an 18-month non-compete provision, and not the IIP's more restrictive 30-month non-compete provision; (2) that Plaintiff did not violate the 18-month non-compete provision, so applicable law mandates continued payments under the IIP; and (3) that even if Plaintiff was subject to the IIP's 30-month non-compete provision — a provision he admittedly violated by starting a competing business between 18 and 30 months after his employment ended — the terms of the IIP do not require Plaintiff to return payments Defendant already made under the IIP. (Doc. Nos. 50, 51.)
The Court finds that Magistrate Judge Carlson comprehensively and correctly addressed the substance of Plaintiff's first two objections in the Report and Recommendation itself. (
Plaintiff's third objection warrants further consideration. Magistrate Judge Carlson did not explicitly address whether Defendants are entitled to repayment for the $41,040.00 that they had already paid to Plaintiff before he violated the 30-month non-compete covenant, though the repayment of this amount does appear as part of the requested relief in Defendants' motion for judgment on the pleadings. (
Section 9 of the IIP governs the question of whether Plaintiff must repay the amount he has already been paid pursuant to the IIP. (
After Plaintiff left Defendants' employ but before he received his first quarterly payment under the IIP, Defendant Aerotek mailed Plaintiff a letter, which Plaintiff acknowledged in writing and returned, reminding Plaintiff of his non-compete obligations under the IIP. (Doc. No. 30-4.) The letter explicitly stated that, by acknowledging the letter, Plaintiff agreed that any breach of the non-compete would disqualify him from future IIP payments and that in the event of a breach, Plaintiff "agree[d] to refund to the Company any amounts previously paid to" him under the IIP. (
Neither party briefed the substance of this objection before Magistrate Judge Carlson, and Defendants have not responded to Plaintiff's objections with further briefing of their own. Therefore, while it has been established that Plaintiff was subject to the 30-month non-compete covenant from Section 9 of the IIP, the question remains whether Defendants are entitled to full reimbursement of the payments already made under the quarterly payment regime the IIP created. There is no suggestion that this issue should have been raised and developed
In the absence of a developed record or full briefing on this issue, the Court declines to decide at this juncture whether Plaintiff must repay the entirety of the payments Plaintiff has received. The Court adopts Magistrate Judge Carlson's Report and Recommendation in all other respects.