Ehrlichman v. Heart Tronics CA2/8

Filed 12/31/14 Ehrlichman v. Heart Tronics CA2/8 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION EIGHT

LEE B. EHRLICHMAN, B251805

Plaintiff and Respondent. (Los Angeles County Super. Ct. No. BC408322) v.

HEART TRONICS, INC.,

Defendant and Appellant.

APPEAL from a judgment of the Superior Court of Los Angeles County. Mary H. Strobel, Judge. Affirmed.

Spire Law Group, LLP, and James N. Fiedler, for Defendant and Appellant.

Law Offices of Lisa L. Maki and Lisa L. Maki for Plaintiff and Respondent.

__________________________

Heart Tronics, Inc., appeals from the judgment awarding former chief operating officer Lee B. Ehrlichman more than $1.2 million for breach of contract, wrongful termination, and related statutory wage violations after the trial court found that Heart Tronics fired Ehrlichman without cause. We reject Heart Tronics’ contention that there was insufficient evidence to support the judgment and therefore affirm.

FACTS AND PROCEDURAL HISTORY

In June 2008 Lee B. Ehrlichman was hired as chief operating officer of Heart Tronics, Inc., a start-up business that had developed improved electrocardiogram technology.1 The parties’ written employment agreement provided Ehrlichman an annual salary of $500,000, along with relocation expenses and other benefits. Ehrlichman took the job after working for several weeks as a consultant for the company, in part so he could determine whether the company was viable. Under the agreement Ehrlichman was entitled to two-year’ severance pay if he were fired without good cause. The agreement defined good cause as follows: conduct that led to Heart Tronics being convicted of a crime or incurring criminal penalties; directives by appropriate government entities that Ehrlichman be terminated; Ehrlichman’s conviction of a felony offense or a misdemeanor involving a crime of dishonesty or moral turpitude; and the falsity of any of Ehrlichman’s representations and warranties contained in the agreement. The agreement contained three representations and warranties applicable to Ehrlichman – concerning advice of counsel and the absence of duress and coercion in the negotiation and execution of the agreement, and that he was not disabled at the time of execution. The employment agreement provided that Ehrlichman would be paid at least semi- monthly. Although Ehrlichman was paid during July and August 2008, he was not paid during September or October. On October 28, 2008, Ehrlichman sent a letter to Heart Tronics’ board of directors stating that he would be forced to resign unless he was paid.