The opinion of the court was delivered by: Magistrate Judge Maria Valdez
MEMORANDUM OPINION AND ORDER
Plaintiff Thomas Adams brought this action against defendants Richard Catrambone and Great Lakes Building Materials, Inc. ("GLBM"), alleging breach of fiduciary duty, tortious interference with economic advantage, and violation of the Illinois Wage Act. The parties consented to the jurisdiction of the United States Magistrate Judge pursuant to 28 U.S.C. § 636(c).
Liability and damages were bifurcated by agreement of the parties. The liability phase was tried before a jury, and damages were heard in a bench trial. On March 23, 2007, following a four-day trial, a jury found in favor of Adams and against Catrambone on his fiduciary duty and loss of prospective economic advantage claims and in favor of Adams and against GLBM on his Illinois Wage Act claim. The jury further found with respect to both claims against Catrambone that Catrambone's conduct was willful and wanton and that Adams was entitled to an award of punitive damages. A two-day trial on damages was heard by the Court on March 30-April 1, 2008. The matter is now before the Court for findings of fact and conclusions of law on damages in accordance with Federal Rule of Civil Procedure 52(a).
The Court has considered the testimony of the witnesses who testified at both phases of the trial, the parties' trial exhibits, the stipulations made by the parties, the liability jury's verdict, the proposed findings and conclusions submitted by the parties, and the closing arguments of counsel. To the extent certain findings of fact may be deemed conclusions of law, they should also be considered conclusions of law. Similarly, to the extent matters contained in the conclusions of law may be deemed findings of fact, they should also be considered findings of fact.
1. Adams and Catrambone are 50/50 partners in a business or venture to, among other things, distribute building materials including drywall. Adams and Catrambone caused GLBM to be formed for the purpose of distributing building materials, with each taking a 50% interest.
2. By finding in Adams's favor on his tortious interference claim, the jury necessarily found that the partnership was not dissolved on September 5, 2002, as Catrambone claims.
Breach of Fiduciary Duty Claim
3. Catrambone owed a fiduciary duty to Adams, he breached that duty, and Adams suffered damages proximately caused by the breach. Adams's damages were caused by insider dealing, diversion of money and profit, and wrongful termination.
4. Catrambone, though RDM Distribution, a company owned and controlled by him, improperly overcharged GLBM by $4.00 per 1000 square feet of wallboard, a total of $3,200.00 per week for thirty-two weeks, without disclosure to or the approval of Adams. Adams claims the total amount of damages to him is thus $102,400.00.
5. Catrambone, through Summit Truck Leasing, Inc. and Summit Express, Inc., entities owned or controlled by him, diverted monies and profits belonging to GLBM and Adams.
6. Based on the equitable accounting in this case, Adams claims his damages for wrongful diversion are $15,042,965.65. Adams, however, limits his claim of damages for wrongful diversion to $3,000,000.00.
7. Catrambone wrongfully terminated Adams as a shareholder, officer, and employee in GLBM in September 2002.
8. As a result of his wrongful termination, Adams claims lost final compensation payments from GLBM from the start of the business to September 2002 in the amount of $84,028.00, representing $71,300.00 in wages and $12,728.00 in unreimbursed expenses.
9. As a result of his wrongful termination, Adams claims lost income and benefits from September 2002 through December 2007*fn1 in the amount of $1,119,121.00.
10. Adams claims he lost a total of $498,935.00 in base income from September 2002 to December 2007. This income is calculated using a base weekly wage of $1,550.00, with a 3% increase for each succeeding year.
11. Adams claims he lost $525,000.00 in bonuses/dividends from September 2002 through December 2007, based upon an agreement between Adams and Catrambone. The claimed lost bonuses amount to $50,000.00 in 2002; $75,000.00 in 2003; $100,000.00 in 2004; $100,000.00 in 2005; $100,000.00 in 2006; and $100,000.00 in 2007.
12. Adams claims he lost a total of $51,618.00 in health benefits from September 2002 to December 2007, calculated by multiplying his monthly health insurance premiums of $645.00 in 2002 by the applicable number of weeks. For each succeeding year, Adams increased the monthly premiums by 8% over the previous year's premiums.
13. Adams claims he lost a total of $43,588.00 in lost automobile allowance from September 2002 to December 2007, calculated by multiplying his monthly base allowance of $560.00 by the applicable number of months. For each succeeding year, Adams increased the monthly allowance by 7% over the previous year.
14. Adams claims GLBM violated the Illinois Wage Act by failing to pay final compensation to Adams in the amount of $84,028.00, comprised of ...