Opinion ID: 874386
Heading Depth: 2
Heading Rank: 5

Heading: Quantum Meruit Claim

Text: Gray also argues that the district court erred in granting summary judgment to Tri-Way on his claim for quantum meruit. Specifically, Gray argues that the district court erred in finding that he had failed to present any evidence that the customary rate of pay for his work in the community at the time the work was performed included a bonus. Gray argues there is evidence in the record indicating that he was not paid the reasonable value for his services, i.e., (1) Tri-Way received hundreds of thousands of dollars in net profits attributable to Gray's efforts, (2) Tri-Way offered Gray a $60,000 bonus after he left for the two projects he ran, (3) the fact that Gray's previous salary and bonus provisions at Albertson's ($108,000 per year plus stock options and bonus) were significantly higher than Gray's base salary at Tri-Way, and (4) the fact that Tri-Way employees filling lower positions earned significantly more than Gray did based on his $4,000 per month salary. The doctrine of quantum meruit is a remedy for an implied-in-fact contract and permits a party to recover the reasonable value of services rendered or material provided on the basis of an implied promise to pay. See Cheung v. Pena, 143 Idaho 30, 35, 137 P.3d 417, 422 (2006). An implied-in-fact contract is grounded in the parties' agreement and tacit understanding that there is a contract. Fox v. Mountain West Elec., Inc., 137 Idaho 703, 708, 52 P.3d 848, 853 (2002). The general rule is that where the conduct of the parties allows the dual inferences that one performed at the other's request and that the requesting party promised payment, then the court may find a contract implied in fact. Homes by Bell-Hi, Inc. v. Wood, 110 Idaho 319, 321, 715 P.2d 989, 991 (1986). Before addressing the merits of Gray's claim, we find it necessary to explain why Gray may be entitled to relief under an implied-in-fact contract in light of our previous holding that the parties intended that any contract be in writing to be enforceable. In this case, the conduct of the parties leads to the dual inference that Gray performed at Tri-Way's request and that Tri-Way promised to pay Gray the reasonable value for his services. Such inferences are found in the fact that Tri-Way paid Gray $4,000 per month for his services and offered him a $60,000 payment as an attempt to make a fair assessment of the value ... for the two projects he ran. Although the district court did not specifically find that an implied-in-fact contract exists, it in essence did so by determining that the issue regarding quantum meruit would be a jury question if the dispute was that Gray had not been compensated for his services. From this statement, the Court can reasonably infer the district court determined that Gray performed at Tri-Way's request and that Tri-Way promised to pay Gray for his services. The fault in the district court's statement is that it does not phrase the issue as being whether Gray was reasonably compensated for his services. If the district court had phrased the issue that way, it would have found that there is an implied-in-fact contract under which Gray is entitled to the relief, i.e., the reasonable value of his services. Although Gray is not able to enforce the specific provisions contained in the draft employment contracts under an implied-in-fact contract, including the 50% profit-sharing provision, he is able to recover the reasonable value of his services, which may ultimately be found to include some form of bonus compensation if the amount is determined to be over the $4,000 per month salary that was actually paid. Therefore, it is not inconsistent of us to hold that the parties intended that any contract be in writing to be enforceable and at the same time hold that Gray may be entitled to relief under an implied-in-fact contract. Therefore, we must determine whether it was proper for the district court to award summary judgment against Gray under the reasoning that Gray failed to present any evidence that the customary rate of pay for his work in the community at the time the work was performed included a bonus. As the moving party, Tri-Way had the burden of proving that there was a lack of genuine issue of material fact as to whether Gray was paid the reasonable value for his services. See Vincen v. Lazarus, 93 Idaho 145, 149, 456 P.2d 789, 793 (1969). In Tri-Way's memorandum in support of its motion for summary judgment, Tri-Way argued that the only inference the district court could make from the parties' conduct was that Gray received precisely what he requesteda $4,000 per month salary from June 1 through November 30, 2004. However, just because Tri-Way paid Gray the $4,000 per month salary that he requested does not necessarily mean Gray received the reasonable value for his services. Gray also requested 50% of the net profits for the Arizona division. Furthermore, Peterson testified during his deposition that Tri-Way offered Gray a $60,000 payment at the end of his employment as an attempt to make a fair assessment of the value ... for the two projects he ran. [3] This evidence tends to demonstrate that the reasonable value for Gray's services was over the $4,000 per month salary paid to Gray by the company. Because Tri-Way failed to meet its burden as the moving party, the district court improperly placed the burden of production on Gray, the non-moving party, to show that the customary rate of pay for his work in the community at the time the work was performed included a bonus. As such, we reverse in part the district court's award of summary judgment against Gray on his quantum meruit claim and remand for a trial on the merits.