Dilek v. Watson Enterprises, Inc.

Watson Enterprises, Inc. (WEI) (defendant) operated a Mercedes-Benz dealership. Emel Dilek (plaintiff) began working for WEI in October 2005 pursuant to an employment contract. Dilek was hired by Ronald Pecunies, WEI’s chief operating officer and minority shareholder. Dilek and Pecunies were in a romantic relationship at the time. Dilek’s initial contract stated that, pursuant to WEI’s policy, her employment was at-will but that WEI could change Dilek’s employment terms. Over the next few years, Dilek received a promotion and multiple raises from WEI, as well as praise from Arthur Watson (WEI’s majority shareholder) and numerous certifications from Mercedes-Benz. Pecunies informed Dilek about her promotion and raises. Watson, who held superior power over Pecunies and who limited Pecunies’s ability to take certain employment actions, generally avoided involvement in Dilek-related employment matters due to the Dilek-Pecunies relationship. In 2009, Dilek signed a four-year contract with WEI, which Pecunies signed for WEI. Pecunies died in May 2010; WEI terminated Dilek three months later. Dilek sued WEI for breach of contract. WEI responded that (1) the 2009 contract was invalid because Pecunies did not have actual or apparent authority to enter into it and (2) Pecunies acted for his own benefit, and against WEI’s interest, in signing the 2009 contract because, among other things, Dilek spent most of her time shopping and travelling. The parties cross-moved for summary judgment with respect to Pecunies’s authority and whether Pecunies acted against WEI’s interest.