Gary M. Feldman Obtains Defense Judgment in Trial of Wage Act Claims

April 11, 2011 - Boston, MA
For more information contact: Joanne Thorud
(617) 589-3894; jthorud@davismalm.com

Davis Malm attorney Gary M. Feldman won a decisive victory in New Hampshire Superior Court in a Wage Act case on behalf of a Director of a bankrupt company. The suit, a consolidated action for unpaid wages, was brought by a group of former management employees who alleged they were left with unpaid compensation. Davis Malm’s client, a principal at a venture capital firm that invested in the company, took a seat on the board as an outside director in connection with his company’s investment. After the company went bankrupt, the former employees sued our client and another outside director for unpaid wages, multiple damages, and attorney’s fees claiming they were personally responsible for the unpaid wages under the definition of “employer” in the New Hampshire Wage Act. Under the New Hampshire wage statute, an “employer” is defined to include “the officers and agents having the management of such corporation.” Mr. Feldman defended the claim on the basis that his client was not personally responsible for the bankrupt company’s failure to pay wages because he was not an officer and was not an “agent having management of the corporation.” After a five day bench trial, the New Hampshire Superior Court agreed with Mr. Feldman’s position and concluded that the defendants were not liable merely as a result of their status as directors and there was no evidence that they acted as “agents” of the company.

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