Cressy v. Proctor
666 F. App'x 70
| 2d Cir. | 2016Background
- Ronald Cressy and Kevin Proctor were domestic partners; Cressy performed full-time administrative and clerical work running day-to-day operations for Proctor’s business, Synergy, from mid‑1994 through February 2008.
- Cressy received no paycheck; instead he enjoyed household/lifestyle benefits from the domestic relationship.
- After the relationship ended and Synergy closed, Cressy sought equitable restitution (quantum meruit) for the reasonable value of his labor.
- The District of Vermont conducted a bench trial, found Cressy’s labor materially benefitted Proctor, and awarded $107,957 based on a $40,000 starting salary in 1994 with growth through 2008.
- Proctor appealed, arguing the award was legally improper, that laches/estoppel barred recovery, that lifestyle benefits should offset damages, and that the damages period and salary baseline were incorrect.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether quantum meruit restitution is appropriate for unpaid services performed during a domestic relationship | Cressy: His full‑time, business‑level labor conferred a material benefit warranting restitution measured by reasonable value of services | Proctor: Services were part of domestic exchange; lifestyle benefits already compensated Cressy, so no restitution owed | Court: Affirmed award of quantum meruit; labor was distinct from normal domestic benefits and materially benefitted Proctor |
| Standard of review for awarding equitable restitution | Cressy: District court’s equitable award reviewed for abuse of discretion | Proctor: Argued de novo review should apply | Court: Review is abuse of discretion; fact findings reviewed for clear error |
| Laches / estoppel defenses | Cressy: Delay in asserting claim was reasonable given ongoing domestic relationship | Proctor: Cressy waited unreasonably and acquiesced, so barred | Court: Rejected laches and estoppel; no unreasonable delay or prejudice because claim accrues on dissolution |
| Computation of damages (earning period, salary baseline, offsets) | Cressy: Use full‑time employment period (mid‑1994–Feb 2008), $40,000 starting salary with growth; no offset for domestic benefits | Proctor: Limit period, use $30,000 starting salary, and offset value of lifestyle benefits after 2008 | Court: Calculations accepted; earnings period and $40,000 baseline supported by evidence; no offset for normal domestic benefits |
Key Cases Cited
- Amara v. Cigna Corp., 775 F.3d 510 (2d Cir. 2014) (equitable relief reviewed for abuse of discretion and factual findings for clear error)
- Weed v. Weed, 968 A.2d 310 (Vt. 2008) (equitable remedies reviewed for abuse of discretion)
- Harman v. Rogers, 510 A.2d 161 (Vt. 1986) (unmarried partner’s uncompensated business services held to materially benefit owner; restitution ordered)
- DJ Painting, Inc. v. Baraw Enters., Inc., 776 A.2d 413 (Vt. 2001) (equitable restitution based on implied promise when retention of benefit is inequitable)
- United States v. Murphy, 703 F.3d 182 (2d Cir. 2012) (factfinder’s permissible choice among competing views of evidence not clearly erroneous)
