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Mel T. Romero, V Secret Gardens Of Washington, Llc, Etal
53969-1
| Wash. Ct. App. | Jun 29, 2021
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Background

  • Romero was recruited as Director of R&D for Secret Gardens and negotiated a $150,000 annual salary; Delaney (owner) initially proposed a January 1, 2015 salary start tied to first expected harvest.
  • Delaney supplied a draft contract; Romero’s attorney substantially revised Paragraph 7 to offer two alternative salary-start options (date signed or January 1, 2015 with an unspecified retroactive date), leaving blanks and neither option selected.
  • Romero began performing sporadic work on October 1, 2014; payments from Secret Gardens from Oct–Nov 2014 were intermittent (checks/cash), Romero signed in as a visitor, and he did not receive an employee badge until January 2015.
  • On November 14, 2014 Secret Gardens held a meeting announcing cancellation of employment contracts due to financial trouble and offered continued work at minimum wage; Romero stayed and continued working until quitting June 2, 2015.
  • Romero sued for breach of contract and wage violations; the trial court found Paragraph 7 ambiguous, no meeting of the minds on the salary start date, concluded the salary obligation did not begin before Jan 1, 2015, and granted dismissal; the Court of Appeals affirmed.

Issues

Issue Plaintiff's Argument (Romero) Defendant's Argument (Secret Gardens) Held
Whether the $150,000 annual salary obligation began Oct 1, 2014 or Jan 1, 2015 (contract interpretation/ambiguity) Contract commencement (Oct 1) and Romero’s performance show salary began Oct 1, 2014 Paragraph 7 is ambiguous and extrinsic evidence and parties’ performance support Jan 1, 2015 start Paragraph 7 is ambiguous; extrinsic evidence and parties’ conduct support that salary did not commence before Jan 1, 2015, so Romero’s contract claim fails
Whether ambiguity should be construed against drafter (contra proferentem) Contract was negotiated; ambiguity should not be placed solely on Romero Romero’s attorney redrafted Paragraph 7, so ambiguity is construed against Romero Court held Romero’s attorney drafted Paragraph 7 and construed the ambiguity against Romero
Whether there was a meeting of the minds on the salary start date (essential term) Parties intended salary to apply retroactively to Oct 1, 2014 No mutual agreement selecting one of Paragraph 7’s alternatives; no meeting of minds on essential term No meeting of the minds; absence of agreement on essential term defeats breach claim
Whether Secret Gardens committed wage violations (RCW 49.48.010 / 49.52.070) for unpaid wages (~$3,000) Defendants admitted they prepared to pay $3,000; Romero seeks unpaid wages and double damages for willful withholding Payments totaled $5,050; Romero produced no evidence of unpaid hours or willful withholding Court: no evidence Romero worked uncompensated hours beyond amounts paid and no willful withholding; wage claims dismissed

Key Cases Cited

  • Hearst Commc’ns, Inc. v. Seattle Times Co., 154 Wn.2d 493 (Wash. 2005) (context rule; use extrinsic evidence to interpret ambiguous contract language)
  • Sea-Van Invs. Assocs. v. Hamilton, 125 Wn.2d 120 (Wash. 1994) (requirement of meeting of the minds for enforceable contract)
  • Grant County Constructors v. E. V. Lane Corp., 77 Wn.2d 110 (Wash. 1969) (interpret contract as a whole; avoid inserting ambiguity where reasonably possible)
  • McKasson v. Johnson, 178 Wn. App. 422 (Wash. Ct. App. 2013) (ambiguities generally construed against drafter)
  • Denaxas v. Sandstone Court of Bellevue, LLC, 148 Wn.2d 654 (Wash. 2003) (standards for reformation of written instruments)
  • McKelvie v. Hackney, 58 Wn.2d 23 (Wash. 1961) (court may not invent an agreement the parties did not make)
  • Nye v. Univ. of Wash., 163 Wn. App. 875 (Wash. Ct. App. 2011) (extrinsic evidence includes subsequent acts and conduct of the parties)
  • Conway Constr. Co. v. City of Puyallup, 13 Wn. App. 2d 112 (Wash. Ct. App. 2020) (appellate deference to trial court findings on credibility and conflicting evidence)
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Case Details

Case Name: Mel T. Romero, V Secret Gardens Of Washington, Llc, Etal
Court Name: Court of Appeals of Washington
Date Published: Jun 29, 2021
Docket Number: 53969-1
Court Abbreviation: Wash. Ct. App.