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JRE Management, LLC sues Defendant GCP Clinical Trial Consultants, Inc.
for breach of contract JRE Management, LLC GCP Clinical
Trial Consultants, Inc. entered into an owner and operator
of JRE, Regina Ezeh, performed consulting services for GCP failed to pay JRE for
services rendered Furthermore, JRE terminated its contract with JRE and Ezeh
JRE Management, LLC limited liability company registered in the state of
GCP Clinical Trial Consultants, Inc. a Texas corporation with its principal
place of business located at 9595 Six Pines Drive, Suite 8210, The Woodlands, TX 77380
Defendant may be served through its registered agent, United States Corporation Agents,
, at 9900 Spectrum Drive , Texas Defendant may also be
served through its Director and President Jeffrey A. Faatz located at 651 Chateau Woods
Parkway Drive, Conroe, Texas 77385.
DISCOVERY CONTROL PLAN
Plaintiff files this suit as an expedited action under Texas Rule of Civil Procedure 169.
Plaintiff intends that this suit be governed by discovery control level one.
Plaintiff seeks only monetary relief of $250,000 or less, excluding interest, statutory or
punitive damages and penalties, and attorney’s fees and costs
JURISDICTION AND VENUE
This Court has jurisdiction and venue over the parties to this action since the matter in
controversy exceeds the sum or value of the minimum jurisdictional limits of the Court,
exclusive of costs and interest.
Venue is proper in Montgomery County, Texas, pursuant to Section 15.002(a) (b) of the
Texas Civil Practice and Remedies Code because t county of the efendant s principal
office Montgomery County.
IV. FACTS
JRE Management, LLC and Defendant GCP Clinical Trial Consultants, Inc. entered into
a contract, the Consulting Agreement (the “Agreement”), on June 24, 2022.
Executing the greement on behalf of JRE was its owner operator, Regina Ezeh.
Executing the greement on behalf of GCP was its President and Director Jeffrey A.
Prior to the signing of the Agreement, had approached Ezeh and informed her that
GCP’s client, confidential , was looking for experienced Clinical Research Associates
(CRAs).
Plaintiff s Original Petition & Jury Demand Page
Consultant shall return all Confidential Information, including any copies thereof, to
Company or, upon request by the Company, shall certify in writing that the Confidential
Information and all copies were destroyed.
Consultant acknowledges that the Company has confidentiality and non disclosure
agreements with Client. Consultant agrees to comply with the Company’s obligations
Accordingly,
under the the Agreementandprovided
confidentiality non disclosure that Ezehagreements was engaged
and to execute to provide
all documentsexperienced,
required for compliance by Client and/or Company.
CONSULTING AGREEMENT
qualified services for various clinical trials conducted by clients of GCP.
This CONSULTING AGREEMENT the “Agreement”) is made and entered into as of
the“Confidential
day of July Information”theshall mean allDate”)
“Effective of the materials,
by and betweeninformation,
GCP and strategies
Clinical Trial that
Specifically,
the Company
Consultants, Ezeh was assigned
treats as confidential
Inc. (“Company”) to perform services
or proprietary
a Texas Corporation, on GCP’s
with including, account
without
a mailing address with
limitation,
of 9595 Six Pinesconfidential
client
names;
Drive, Suiteclient
8210, lists; client files;
The Woodlands, TXclient
77380information;
and JRE Management, vendor names and lists; personnel
LLC (“Consultant”),
For Georgia
the duration of
Limited Liability
information; her Company,
operating employment, with a mailing
and training always
address
manuals; of gave her
3404 Twinrose
operation best
methods efforts
Place,
andMilton, toGA GCP and its
information;
. The Company and Consultant are sometimes referred to individually as a “Party” and
technical, financial, sales, and planning information; client products, strategies, research,
collectively as the “Parties.”
client, confidential
government , and complied
compliance, with JRE’s
and marketing; and side tradeof secrets.
the Agreement.
However, Confidential
Information
Purpose.does not include
Subject to the anytermsinformation
and conditions whichhereof,
(i) wastheknownCompanyto the hereby
public atretains
the time
Whileitworking
wasConsultant with
disclosed GCP,
to to Consultant;
provide had
(ii) no
experienced, disciplinary
lawfully
qualified services history
obtained and and
actually
various anticipated
known
clinical remaining with
trialstoconducted
Consultant,
TimeSponsors
before itand or Contract
wasExpense
disclosed to Research
Reports Consultant,Organizations
Consultant from (“Client”).
shallasubmit
source another thaninvoic
itemized the Company;
documenting andall(iii)
GCP throughout
billable
becomes timeits contractual
and
generally travel
known or relationship
expenses to
availablethe Company
in with
the onconfidential
industry,or before
trade, the
or , day
at the
5public, very
ofother
the month least.
than for
by a
Scope
the of Services
preceding month’s Consultant
work viawillemail assist the Company in providing services to Client
to jeff.faatz@gcpclinicalconsultants.com in
Billable
breach
time, by Consultan
accordance
expenses, with
and orterms
theall others
of of
receipts the
areany
to legal
study duty into
beprotocol,
entered owed to the federal
ICHReplicon,
GCPs, Company.
a timeregulations,
& expenseand any
software
Pursuantprovided
to the
other Agreement
relevant
to the study plan atThe
Consultant nowas guaranteed
services
charge. will
If include40assisting
Consultant hours
fails perCompany
to the
submit week at
with
the requisiteanstudy
hourly
time, rate of
Intellectual Property Rights Consultant acknowledges that all services provided5 by
expenses,
start up and invoice
activities, preby the
study close of
visits, business
site (i.e.,
initiation, 5:00
site PM U.S.
management, Central Time)
interim on
monitoring,the
$120/hour day ofcleanup,
data
Consultant theunder
month, Company
quality
this reserves
assurance,
Agreement the right
document
are subject totothe
review, not process
team
“Works late
support
made submissions
and training,
for until
hire”site the out
close
provision next
in 17
month’s cycle.
visits, and other reasonably necessary tasks as determined by Company or Client.
U.S.C. § 201(b) and that Consultant’s work product shall be the sole property of the
services will be performed by Consultant to the reasonable satisfaction of Company and in
Company.
Guaranteed
accordance Minimum Hours The
with all applicable lawsCompany agrees to
and the highest pay Consultant
professional for a for
standards minimum
clinicalof
40trials.
hoursConsultant
per week will
overreport
the term of theA.
to Jeffrey Agreement, and Consultant
Faatz, the Company agrees to be available
President.
to the Company to provide services upon request. If the Company chooses not to use
Covenant
Consultant’s
Not services
to Compete. In exchange fora the
forcommences
any reasononduring
promises
givenDate
work
by the
week,
Company will
the Company
underpaythis
Term. This
Agreement, Agreement the Effective set forth above and willCompany
continue
Consultant the hourly rate set forth above in Section 4 for a guaranteed number of hoursby
Consultant agrees that he or she will not compete with the
until the end of the Company’s consulting agreement(s) with Client or upon termination of
providing clinical
(i.e. 40 hours) trial that
during consulting
work week.
the Agreement, whichever occurs first.
services to any
Subject Client
to the for whom
restrictions Consultant
set forth below inperformed
Section
13, Company
services agrees that Consultant
on the Company’s behalf duringmay engage
the termin of
other
thisbusiness
Agreementactivities provided
and for one (1)such
year
other business activities do not negatively affect its Service level to Company, its ability to
after termination
Compensation
perform
ofConsultant
this and
its obligations
Agreement
will out
carry
This
be paid covenantonenothundred
its responsibilities
to compete
to Company
applies
twenty toorand
dollars
hereunder
allcause
clinical
no it
trialtocents)
consulting
per services
hour by provided
Company forbyallConsultant
services directly
performed
be in breach of any of its obligations under this Agreement. or
underon behalf
this of any
Agreement other
within person,
14
firm,days after payment
partnership, is received for those services from Client (net 30 days). Company will
or corporation.
notify Consultant
Independent Contractorconditions
Status The required
artiesbyacknowledge
Client for billing travelthat
and agree time, preparation
Consultant
and reporting
duly organized work,
and and other services
formed termination performed
company in the under this
State of Georgia.Agreement.
ConsultantIn addition
is 30 to
notdays’
the written
The Agreement
Warranty ofhad
No aRestrictions
no cause Consultant provision,
represents but
andthe required
warrants at
thattomust least
Consultant
providing
Company’s an itemization
employee, of his/her
officer, agent,time and
or partner expenses,
and shall not Consultant
represent provideoristhe
the public not a
any
party toparty
third any that
Company restrictive
with covenants
an invoice.
Consultant isPaymentortoagreements
an employee,the Consultant that
willwould
officer, agent, not restrict
be made
or partner theorCompany.
ofwithout otherwise
an itemized limit
This
notice:Consultant’s
invoice right
Agreement shallonotability to perform
be construed to the services
create under this Agreement.
an employment, agency, or joint venture
relationship between the arties.
Travel Expenses Consultant understands that occasional travel be required under this
Termination.
Taxes
Agreement
This
The Company Agreement
and that shall notmay
Company
be terminated
withhold
will not federal,
without
directly state,
pay for
causetaxes
or local by either
Consultant’s
party
ortravel
make any thirty
Social
expenses.
(30)
days after the
Security delivery
(FICA)
Consultant to the other
will contributions
be reimbursed forfor
anyofallamount
a reasonable
writtenpaidnotice
toand of termination.
Consultant
necessary under In
travelthis addition,
Agreement
expenses by the
Company
Companymayshall
Consultant immediately
withinbe14solely terminate
responsible
days after payment this
for Agreement
the payment
is received with cause
of allexpenses
for those byfrom
federal, delivery
state, of(net
or local
Client a taxes
written
30
incurred for any compensation paid under this Agreement. Company will give
ClientConsultant
After notice
paying
Form
ofEzeh
days). termination.
Company
1099
willCause
for just
MISC
notify shall
one month
following the end
exist
Consultant oftheof
of
when
all
tax
the beginning
Company
conditions
services,
year.
determines,
required inbyAugust infor itsthesolGCP and
2022,
reimbursement of travel expenses under this Agreement.
discretion, that Consultant has (i) breached a material term of this Agreement, (ii) engaged
inbegan
professional
to as
Benefits
Except breach misconduct
Consultant
set forth above,
detrimental
itsunderstands
contractual and agreestothat,
Consultarelationship
theas performance
will not be with JRE for
a duly organized
reimbursed
ofand
and services
any otherby
under
formed companyfailing
expenses
thisto make
in the
Agreement, State of Georgia Consultant is not eligible for and shall not receive any medical,
incurred (iii)
underdemonstrated
this Agreement, an inability
and Consultantto work with
will othersatonhisbehalf
provide, or herofsole thecost,
Company,all
accident, or workers’ compensation insurance or any benefits available to employees of the
paymentCompany.
for services rendered
necessary equipment, supplies, and instruments.
Page of
Confidentiality
Faatz claim the delayConsultant
in GCP’s acknowledges
payment toandJRE
agrees
wasthat
dueallto
files, records, lists,’s
confidential books,
failure to pay
products, and other materials owned or used by the Company in connection with its
consulting work, including,JRE
butManagement,
not limited to, Confidential Information as defined below
GCP. shall remain the property of the Company and shall be kept confidential Consultant and
used for the sole benefit of the Company and the Client. Consultant further agrees to not
engage in the unauthorized use, disclosure, dissemination, duplication, copying, or transfe
of the Confidential Information. Within ten (10) days after termination of this Agreement,
Page of
Plaintiff s Original Petition & Jury Demand
JRE Management, Page
Nonetheless, Faatz assured Ezeh that she would be paid once confidential fulfilled its
contractual obligations to GCP.
In reliance on this assurance, Ezeh continued to perform work for GCP.
Then, in early October with GCP becoming increasingly in arrears with JRE,
once again assured Ezeh that she would be paid.
Faatz sent an email to employees, blind copy, stating that confidential owed him money
and that he was not going to be able to pay employees per their contracts, but indicated that
he was in the process of resolving the issue with the client.
Despite th fact that it was GCP’s obligation to pay Ezeh regardless of whether
confidential paid it Ezeh yet again gave Faatz the benefit of doubt and continued to
work.
As late as October 20, 2022, Faatz advised that he thought “the kinks [were] all worked
out,” and told Ezeh she should have “no worries on getting paid.”
Then, on or about October 26, 2022, Faatz terminated Ezeh’s employment effective
immediately, without notice or cause
Plaintiff s Original Petition & Jury Demand Page
At the time of termination, JRE owed compensation from GCP for the months of
August, September, and October
Additionally, JRE was owed compensation for the month of November , as GCP
arly terminated the contract without cause. Accordingly, JRE was entitled to a thirty
day notice period.
Ezeh’s 184 hours in August 2022 were approved.
Ezeh’s 176 hours in September 2022 were approved.
Plaintiff s Original Petition & Jury Demand Page
government
(i.e. compliance,
40 hours) during and marketing;
that work and trade secrets. However, Confidential
the Agreement, whichever occursweek.
first. Subject to the restrictions set forth below in Section
Information
13, Companydoesagreesnotthat
include any information
Consultant may engagewhich (i)business
in other was known to theprovided
activities public atsuch
the time
other
it wasbusiness activities
disclosed to do not negatively
Consultant; (ii) affect obtained
lawfully its Serviceand
level to Company,
actually known itsto
ability to
Consultant,
Compensation Consultant will be paid one hundred twenty dollars and no
perform its obligations and carry out its responsibilities to Company hereunder or cause it
beforeper
cents) it was
hour disclosed
by Company to for
Consultant,
all servicesfrom a source
performed under
to be in breach of any of its obligations under this Agreement.
other
thisthan the Company;
Agreement within 14 and (iii)
days after payment
becomes generallyis received
known or foravailable
those services
in thefrom Client (net
industry, 30 days).
trade, Company
or public, otherwillthan by a
notify Consultant
breach by Consultan
Independent Contractor conditions
or others required
StatusofThe by
any arties Client
legal duty for billing
owed to and
acknowledge travel