16 (317.24 25' MICHAEL K. JEANES Clerk of the Superior Court By Leslie Groeeveld. Deruty Date 01/11/2017 Tine 15:49:36 SCIILEIER LAW OFFICES, P.C.. Descriptim mm 3101 N. Central Avenue cast-?n [mom?002515 Suite 1090 CIUIL i?l MINT 319.00 Phoenix, Arizona 85012 mm 319.00 Receiptll 25680218 Telephone: (602) 277-0157 Facsimile: (602) 230-9250 TOD F. SCHLEIER, ESQ. #004612 Email: tod@schleierlaw.com BRADLEY H. SCHLEIER, ESQ. #011696 Email: brad@schleierlaw.com A ttorneys far Plaintg'?" Sheila Hea?ly IN THE MARICOPA COUNTY SUPERIOR COURT IN AND FOR THE STATE OF ARIZONA 516 Sheila Healy? a single woman, Plaintiff, COMPLAINT (Breach of Contract; Promissory Arizona Democratic Party, a Political Party Estoppel; Violation of A.R.S. ?23?355; Committee af?liated with the Democratic- Negligent Misrepresentation) Pany? as. Defendant. (Commercial Court Assignment Requested) Plaintiff Sheila Healy; through undersigned counsel, for her Complaint alleges as follows: PARTIES AND JURISDICTION 1. Plaintiff Sheila Heal?y [hereinafter ?Plainti?? or ?Healy?] is a single woman and resides in.Maricopa County, State of Arizona. 2. Defendant Arizona Democratic Party [liereina?er??ADP? upon information and belief, is a Political Party Committee and af?liate of 'the Democratic Party, doing A business in the State of Arizona. Defendant principal?place of business is located in Phoenix, Arizona; 3. Jurisdictionand venue is proper in this court as all relevant acts that form the basis of Plaintiffs claimshave taken place in Maricopa County, Arizona. 4. 'lhe amount in controversy exceeds $75,000.00.? FACTUAL BACKGROUND 5. Plaintiff Healy was o??ered the position as Executive Director of theADP and negotiated her position and compensation with Alexis Tameron, the Chair of the ADP. 6. During Plaintiff Healy?s negotiations with Ms. Tameron, Plaintiff Healy was also comida'ing two other positions as Executive Director with the Vermont and New Mexico Danocratic Parties. 7. A?er numerous discussions, ADP ultimately o??ered Plaintiff Healy an Employee Agreement with the proposed compensation terms, including but not limited to: COMPENSATION The ADP will pay you a salary of $75,000.00 per annurn on a basis at a rate of $3,125 (before applicable withholding and taxes) on the regular paydays The ADP may periodically review and adjust your salary. Revenue Incentive Bonus: 0 The ADP will award you an annual bonus based on a tier percentage structure below for exceeding stated yearly revenue goals} You will be eligible to receive the bonus only if you are employed by ADP on December 31 of the calendar year on which the bonus calculation is based. ADP-agrees to pay the annual bonus on or before June 30 of the year following the calendar year on which the bonus calculation? is based. Assuming you are employed by ADP on December 31 of the calendar year on which the bonus calculation is based, the ADP will pay you the annual bonus regardless ?of your employment status at the time of payment If you are no longer employed. by the the end of the calendar year on which the bonus calculation is based. the bonus will be prorated basedon?mds raised at the time of your departure. The Bonus will be calculated as follows for 2015 and 2016. The current goal is $1,157,500 in 2015, and $2,917, 000 in 2016 (based on the actual total revenue of $2,815.505 received in 2012 plus the cost of in?ation). 'lhe ADP revised tier percentagestrucmre based upon exceeding the above yearly revenue goals is below, however no ?yearly bonus shall exceed one and onehalf tunes your annual base salary (Les max yearly bonus is $116,250, in addition to your regular base salary). $200,000 - $500,000 in excess of revenue goals - 5% $500,001 . $850,000 in excess of revenue goals - 7% $850.000+ in excess of revenue goak - $610 Excludes federal transfers specifically intended for volwrteer-exempt direct mail on behalf of candidates. but include: abninistmtionfees levied by the ADP. 8. The agreement provided that Plaintiff Healy's bonus was based on total funds raised with the exception for federal transfers intended for'volunteer-exempt direct mail on behalf of candidates. 9. Based on and in reliance of the compensation offered, Healy did not pursue an offer to be Executive Director for the Vermont Democratic Party. Also, at that time and during her negotiations with ADP and based on the offers being made by Ms. Tameron, Healy rejected another job offer to be Executive Director for the New Mexico Democratic Party. 10'. On July 20, 2015? Plaintiff signed the Employee Agreement and started working for ADP ?on August 5,2015. 11. At the time of her hire, Ms ?Tameron provided Plaintiff Healy with a goal of for 2016. 12. Since her start with ADP Plaintiff Healy excelled and with the full knowledge of the ADP Board, she began 'a ?Coordinated Carnpaign? involving fundraising for an ADP program that bene?ted federal, state, and local candidates in addition to other fundraising efforts. -3. addition to her exceptional job in fundraising, Plaintiff Healy also directed many of her efforts to insuring that other business practices were meeting needed standards to maximize goals. Plaintiff Healy?s efforts, all led to various articles in national publications like the New York Times .that- heralded Arizona as becoming a model for a well-run, successful state party. 14. It. was with regard to Plaintiff Healy?s efforts to help control the costs paid to vendors and the actions relating to vendors that led to ariseof animosity between Healy and Ms. Tameron. Plaintiff?s failure-tos?upport the award of a large direCt-mail contract to a close friend of Ms. Tameron concerns about the cast ofa sizable digital contract awarded to Ms. Tarnero'n?s husband. 15. Plaintiff Healy had the contract with Ms. Tameron?s husband evaluated by the, digital expert at the Democratic National Committee, and she was informed that the work was substandard and the payments were well above market value. It was Plaintiff Healy?s efforts to correct what appearedto be self-dealing by Ms. Tameron that regularly brought the two of'the'm into con?ict, 16. In fact, Ms. Tameron then began to push Plaintiff Healy out of her duties during the ?nal weeks of this year?s election cycle as Arizona became an ?in play? state. Prior ?to this time; Ms. Tameron had taken a backseat with regard to the partnerships Plaintiff Healy had developed with national and .ingstate political partners, taking a limited role in,fundraising, and really not having any major role in the election cycle as the faceof ADP. 17. Subsequently, Ms. Tam'eron?s role changed and in the ?nal three weeks Ms. Tameron took a more front. and center role with ADP and changed Plaintiff Healy?s duties to. where Plaintiff Healy was merely left as an administrator whose major role was that of a fundraiser. .2'1 22 23 24 25? 18-. This. impacted relationships and morale that Plaintiff Healy had developed I with staff, as well as the relationship with the national party. 19. Notwithstanding Plaintiff Healy-?s great work she ?was informed on November 10, 2016? that herremployment as Executive Director was being terminated. 20. In' a meeting with Ms. Tameron and Mr. Bill Roe, First Vice, Chairman of the ADP, Plaintiff Healy was informed that-she would be paid her bonus over a period of nine months if she signed a Non-Disp?aragementAgreement. 21. Upon information and belief, by the end of Healy?s employment with ADP, the fundraising would exceed $7million. 22. This was well above Plaintiff Healy?s fundraising goal, even'accounting?for contractually excluded revenues for volunteer exempt mail on behalf of candidates. 23. Based on the fundraising numbers Plaintiff Healy is entitled to approximately $116,250 pursuant?to' the'terrns oftheEmployment Agreement. 24, . However, initially Plaintiff Healy was told by counsel. for ADP that she would only be entitled to $103,000, which only included part of 'Plaintiff Healy?s fundraising efforts. That calculation did not include all revenues and 'did not include revenues up, through the date of Plaintiff Healy?s termination. 25. counsel subsequently contacted Plaintiff Healy and stated she had only? raised $85,000 in excess" of her goals, utilizing a skewed and disingenuous interpretation that is not supported by the plain language of Plaintiff Healy?s Employee Agreement. .26. ADP- therea?er offered to pay Plaintiff only $3,992.54 'as a fundraising bonus and reguired her to sign a separationagreementin order to receive said' payment. COUNT I (Breach of Contract) 27. By reference hereto, Plaintiff Healy hereby incorporates the preceding paragraphs._ 28. Defendant ADP entered into an agreement that Defendant ADP would pay Plaintiff llealy compensation ?in the event she met certain fundraising goals under her Employee Agreement. 29. ADP has. breached that- agreement by failing to compensate Plaintiff Healy her earned. compensation under the Agreement dated July 20, 201-5 in? the approximate sum of $116,250.00. 30. As approximate result of Defendant?s breaCh of contract, Plaintiff Healy has been damaged for the value of. the compensation owed. 31. As this cause of action arises out of contract, express or implied, Plaintiff is entitled to an award of attorneys? fees pursuant 'to ?12-34l.01. COUNT ll (Violation of A.R.S. ?23-350, et._seq.) .32. By reference hereto, Plaintiff Healy hereby incorporates the preceding paragraphs. .33. Plaintiff Healy- and Defendant ADP entered ,into an agreement thatPlaintiff l-Ieal'y would be paid incentives under the Employee Agreement?dated July 20, 201-5. 34. Defendant ADP has breached that agreement by failing to compensate Plaintiff I~Iealy for incentive compensation she earned under the Employee Agreement and failed to timely pay said wages under Arizona law. 35. The amounts owed Plaintii?chaly are wages under A.R.S. ?23-351. Mll? ?All tvllulxl. mul lu wlluo. lu [my all Wle uwlug loulu 37? mum? Am?! Mluull uu luullu. 38? lu Mid?. In lu llmunuon l?ur luu? luul all \x?uucu ouuvully luml uullcr llulplluw Aamuwul Jul 201.1. ll?nuuluury l?ulumwl) 30? lly ml?m?vum homo. llculy lmtolsy pwumlluu Nrumupllul au lu July llolluuluul unuumuuou mul ropwmulml lu llcuLv lluu she would lm muupoumlml pnyumuls If ulm uwl nuulul 4L ?us was lu lilupluycc Auroeuwul dated July 20. 20 l. 42? lkl?oullmu Npmoulullum wvro oxpuclml lu lullul'o llouly lu muslumluy rely upuu mul lwu ulhor an Executive hiwclur lho mulva Moxluu 4 l. lkl?culluul Am"! lu?mulnm which I lonly relied upon lu Al )l?u mupluymeul ullhr. 44. l?luiulill?l lmly le?d uu Dol?vulluul ANN lu doll Iuwul. H. Dclbulluul ?luul lu pay Ilonly lho umupounntluu duo undo: the lilupluyuo Agrwumul dulml July 20. 20 3. 40. lk?lhuduul qunl he ?oul?umcll to ?Vuld luluullco. 47. As a direct uud pmxlumlu mull ul' Dolbulluul'u lhlluro lu pny lho cmupcnsulilm owed. lulu nusluluml duumgos lu lho form of km ml well as the value of the lost- opportunities from the two Executive Director Positions Plaintiff rejected. 48. As this cause 'of action arises out of Contact, express 0r implied, Plaintiff is entitled to an award of attomeys? fees pursuant COUNT IV (Negligent Misrepresentation) 49. By? referenCe hereto, Plaintiff- Healy hereby incorporates the preceding paragraphs. .50. During Plainti??s negotiations for her :employment and in subsequent conversations, Plaintiff was continuously promised'by'Defendant ADP and Ms. Tameron in particular that she would be paid on the total amount of fundraising revenue with a minor exception. 51. Defendant. failed entirely to provide Plaintiff with her bonus under the bonus plan?that had been represented. 52. Defendant?s representations to Plaintiff regarding the actual terms of the 1 paymen't'of the bonus were false in that Defendant intended not to pay Plaintiff the bonus. 53. Defendant negligently-made false representations with regard to the bonus to Plaintiff that were made to guide her in her efforts with Defendant ADP and she relied on'those representatiOns. 54. Plaintiff has been damaged, as a result of her reliance on Defendant?s negligent and false representations in the? form'of the lost bonus payment. 55. As a result of Defendant?s negligent conduct, Plaintiff has also suffered emotional distressinthe form of anger, anxiety, lossof'sleep, fear of uncertainty. -3- [26, Mung?. I, 2, 3 4. Forge-andme 5 For removable manor! fees mmw. 23-34113]; 6 Earmarked 7 DATED (his day ?Jami-$2017, WEAWCXTICES PP H. Schick: 3101MWAW Sa'zc 1090 MWSSOIZ Amhi?wgmia?ady