History
  • No items yet
midpage
Ramlall v. Mobilepro Corp.
30 A.3d 1003
Md. Ct. Spec. App.
2011
Read the full case

Background

  • In 2009, Richard Ramlall sued MobilePro Corp. and CloseCall America, Inc. for unpaid bonus under Maryland wage payment law, seeking $144,999.99 plus interest and fees.
  • CloseCall (MD) merged with MVCC in 2004; MVCC survived and later named CloseCall (DE), making CloseCall (DE) the successor to CloseCall (MD).
  • A 2004 merger agreement provided that CloseCall (DE) would assume CloseCall (MD)’s liabilities and that the merger would transfer debts to the surviving corporation.
  • Section 2.14 of the merger disclosure stated a 10% bonus of the “refund” to be paid to three CloseCall employees if the disputes with Verizon were resolved in CloseCall (MD)’s favor; the bonus was tied to a refund mechanism.
  • Ramlall was a lead negotiator in the Verizon dispute; the parties’ oral agreement and emails suggested the bonus could be based on any benefit to CloseCall (MD), not strictly limited to a refund.
  • The circuit court granted MobilePro summary judgment and, after a bench trial, granted judgment to CloseCall (DE); on appeal, the Maryland Court of Special Appeals vacated the CloseCall (DE) judgment and remanded for further proceedings consistent with the opinion.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether MobilePro is liable by piercing the corporate veil Ramlall asserts control by MobilePro over CloseCall (DE) justifies piercing the veil. MobilePro contends it is a separate entity; no basis to pierce the veil. No piercing of the veil; MobilePro not liable.
Whether CloseCall (DE) owed the bonus after merger Disclosure 2.14 reflected the oral bonus agreement; the bonus was due if CloseCall (MD) benefited, not strictly tied to a refund. The bonus depended on a Verizon refund; after merger, CloseCall (DE) is not liable if no refund occurred. Court vacated judgment for CloseCall (DE) and remanded for factual determination on the bonus terms.

Key Cases Cited

  • Bart Arconti & Sons, Inc. v. Ames-Ennis, Inc., 275 Md. 295 (Md. 1975) (piercing the corporate veil only for fraud or paramount equity)
  • Residential Warranty Corp. v. Bancroft Homes Greenspring Valley, Inc., 126 Md.App. 294 (Md. App. 1999) (limits on piercing veil; emphasizes narrow scope of equity)
  • Travel Committee, Inc. v. Pan American World Airways, Inc., 91 Md. App. 123 (Md. App. 1992) (paramount equity concept; limited application in Maryland)
  • Dixon v. Process Corp., 38 Md. App. 644 (Md. App. 1978) (equitable intervention not warranted absent fraud or equity)
  • Service Realty Co. v. Luntz, 210 Md. 228 (Md. 1956) (contract interpretation; extrinsic evidence on terms)
  • Marr v. Langhoff, 322 Md. 657 (Md. 1991) (undisputed contracts; construction as a matter of law)
Read the full case

Case Details

Case Name: Ramlall v. Mobilepro Corp.
Court Name: Court of Special Appeals of Maryland
Date Published: Oct 28, 2011
Citation: 30 A.3d 1003
Docket Number: 01309, September Term, 2010
Court Abbreviation: Md. Ct. Spec. App.