Mathew Despins v. Knowledge AI, Inc., Joonhee Won, and Brian Schreiber - Summary Judgment Ruling
Summary
The District Court of Massachusetts granted in part and denied in part a motion for summary judgment in the case of Mathew Despins v. Knowledge AI, Inc., et al. The ruling addresses claims related to unpaid wages and retaliation.
What changed
The District Court for the District of Massachusetts has issued a ruling on a motion for summary judgment in the case Mathew Despins v. Knowledge AI, Inc., Joonhee Won, and Brian Schreiber. The court granted the motion in part and denied it in part, addressing claims brought by the plaintiff concerning alleged failure to pay wages as per his employment contract and subsequent retaliation for demanding payment.
This ruling signifies a key development in the ongoing litigation, potentially narrowing the scope of claims that will proceed to trial. Compliance officers in similar employment situations should review the court's reasoning for insights into wage disputes and retaliation claims, particularly concerning contract terms and adverse employment actions. While no specific compliance deadline is stated, the decision impacts how employers must handle wage disputes and employee claims to mitigate legal risk.
What to do next
- Review employment contracts for wage payment terms and ensure compliance.
- Assess existing policies and practices regarding employee claims and potential retaliation.
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March 12, 2026 Get Citation Alerts Download PDF Add Note
Mathew Despins v. Knowledge AI, Inc., Joonhee Won, and Brian Schreiber
District Court, D. Massachusetts
- Citations: None known
- Docket Number: 1:24-cv-12255
Precedential Status: Unknown Status
Trial Court Document
UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
*
MATHEW DESPINS, *
*
Plaintiff, *
*
v. *
* Civil Action No. 24-cv-12255-ADB
KNOWLEDGE AI, INC., JOONHEE *
WON, and BRIAN SCHREIBER, *
*
Defendants. *
*
*
MEMORANDUM AND ORDER
BURROUGHS, D.J.
Plaintiff Mathew Despins brings this action against Defendants Knowledge AI, Inc., its
CEO, Joonhee Won, and its COO, Brian Schreiber, asserting four causes of action arising out of
Defendants’ alleged (1) failure to pay Despins wages according to the terms of his employment
contract and (2) subsequent retaliation against Despins for demanding those wages. See [ECF
No. 1-2 (“Compl.”) ¶¶ 35–62]. Before the Court is Defendants’ motion for summary judgment,
[ECF No. 39]. For the following reasons, the motion is GRANTED IN PART and DENIED IN
PART.
I. BACKGROUND
A. Facts1
The following facts are undisputed except where otherwise noted.
On May 19, 2024, Despins began working for Knowledge AI as a sales director, pursuant
to an offer letter signed the same day. [ECF No. 47 ¶¶ 1, 3]. The offer letter established an at-
will employment relationship between Despins and Knowledge AI, pursuant to which Despins
would earn a base salary of $100,000 per year, a monthly commission, and a $4,000 monthly
draw against that commission for the first year. [Id. ¶¶ 4–8]. Despins was responsible for
“selling artificial intelligence-based software to schools.” [Id. ¶ 11]. Between May 21, 2024,
and May 31, 2024, Despins worked with a Knowledge AI employee, Nancy DeCicco, to
complete payroll-related onboarding. [Id. ¶¶ 11–17]. On May 31, 2024, he provided the
documents required to support his I-9 filing, and in the same email asked DeCicco when his first
paycheck would be deposited. [Id. ¶¶ 18–19]. He also texted Schreiber to ask when his
paycheck would come. [Id. ¶ 20].
On June 3, 2024, Despins again reached out to DeCicco to ask what the pay schedule
was. [ECF No. 47 ¶ 21]. She informed him that “[t]he pay cycle is monthly and payable on the
last day of the month,” [id. (alteration in original)], with paychecks “normally deposited on the
last day of each month,” [id. ¶ 22]. Despins claims that Schreiber previously told him paychecks
would be issued biweekly. [Id. ¶ 24]. On June 4, 2024, Despins contacted Schreiber to request
1 Though the parties apparently intended to include exhibits pursuant to a combined table of
contents, see [ECF No. 47-6 at 1], no exhibits were appended to Defendants’ summary judgment
motion. See [ECF Nos. 39–42]. Accordingly, the Court resolved the motion in reliance on
Despins’s responses to Defendants’ statement of material facts, [ECF No. 47], and the exhibits
appended thereto.
2
clarity on the pay schedule, and Schreiber said that payments would be monthly, though he
hoped to increase the frequency to twice per month in the future. [Id. ¶ 25]. On June 10, 2024,
Won emailed Schreiber and Despins to tell them that due to “issues with funding,” Despins’s
paycheck had been delayed, but money would be transferred to him the following day. [Id. ¶
27]. On June 12, 2024, and June 14, 2024, Despins followed up again to request payment, see
[id. ¶¶ 28–29]. On June 17, 2024, Despins was terminated. [Id. ¶ 77].
The record is scant concerning the work Despins did for Knowledge AI between May 19,
when he was hired, and June 17, when he was terminated. The projects that Despins told
Schreiber he was working on included a “[slide] deck,” a “word doc,” and “research on
LinkedIn,” [ECF No. 47 ¶ 30], as well as scheduling appointments and “demos” and creating a
webinar, all with the goal of “clos[ing] [deals] in [A]ugust,” [id. ¶ 31]. On May 28, 2024,
Despins emailed Schreiber a list of prospects, [id. ¶ 35], and on June 7, he told Schreiber that he
had called roughly half of the list, [id. ¶¶ 42–43]. On June 11, 2024, Despins told Schreiber that
he continued to make calls. [Id. ¶ 46]. Despins also created a voice recording for a webinar
presentation, [id. ¶ 50], but the recording was not synchronized with the presentation, and
because of time constraints, another employee ultimately finished the assignment, [id. ¶¶ 51–52].
Apart from his communication to Schreiber and the voice recording, Despins does not recall
producing any documentation of his work. [Id. ¶¶ 37, 39–41, 43–44, 46–48]. On June 17, 2024,
Schreiber informed Despins over email that he had been terminated for failure to provide
documentation of progress in his customer outreach. [Id. ¶ 77].
One day later, on June 18, 2024, Despins was paid $3,110.72 for his work in the month of
May. [ECF No. 47 ¶ 82]. On June 24, 2024, Despins was paid $5,983.44. [Id. ¶ 83]. Finally,
on October 17, 2024, Defendants attempted to pay Despins $15,742.77, representing “the
3
amount owed multiplied by three to account for the Massachusetts Wage Act,” [id. ¶ 84], but
Despins’s counsel “inadvertently shredded the check,” [id. ¶ 85], and Despins was finally paid
$15,717 in January 2025, [id. ¶ 89], which “had taxes deducted as required by [f]ederal and
Massachusetts [s]tate [l]aw,” [id. ¶ 88].
B. Procedural History
On July 2, 2024, Despins initiated this action in Massachusetts Superior Court, asserting
breach of contract, breach of implied covenant of good faith and fair dealing, wrongful
termination, and violation of Massachusetts General Laws chapters 149 and 151. [ECF No. 1-2].
Defendants removed on August 30, 2024, see [ECF No. 1], and answered on September 5, 2024,
[ECF No. 6]. On December 17, 2024, Despins moved for judgment on the pleadings, [ECF No.
17], which Defendants opposed on February 21, 2025, [ECF No. 30]. The Court denied that
motion on February 28, 2025. [ECF No. 31]. On June 13, 2025, Defendants filed the instant
motion for summary judgment. [ECF No. 39].
II. LEGAL STANDARD
Summary judgment is appropriate where “the movant shows that there is no genuine
dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.
R. Civ. P. 56(a). A fact is material if “its existence or nonexistence has the potential to change
the outcome of the suit,” Borges ex rel. S.M.B.W. v. Serrano-Isern, 605 F.3d 1, 5 (1st Cir. 2010)
(citing Martinez v. Colon, 54 F.3d 980, 984 (1st Cir. 1995)), and it is genuinely disputed if “the
evidence of record permits a rational factfinder to resolve it in favor of either party,” id. at 4–5
(citing Medina-Munoz v. R.J. Reynolds Tobacco Co., 896 F.2d 5, 8 (1st Cir. 1990)). “[T]he
moving party must direct [the Court] to specific evidence in the record that would be admissible
at trial,” Ocasio-Hernández v. Fortuño-Burset, 777 F.3d 1, 4 (1st Cir. 2015), and show that the
4
evidence either “negates an essential element of the non-moving party’s claim,” id. (quoting
Carmona v. Toledo, 215 F.3d 124, 132 (1st Cir. 2000)), or “demonstrate[s] that the non-moving
party will be unable to carry its burden of persuasion at trial,” id. at 5 (quoting Carmona, 215
F.3d at 132). Once the moving party has identified such evidence, the burden shifts to the party
opposing summary judgment to “demonstrate that a trier of fact could reasonably resolve [each
issue on which she would bear the burden of proof at trial] in her favor.” Borges, 605 F.3d at 5 (citing Celotex Corp. v. Catrett, 477 U.S. 317, 324 (1986)).
The Court reviews “the entire record in the light most hospitable to the party opposing
summary judgment,” Podiatrist Ass’n v. La Cruz Azul de P.R., Inc., 332 F.3d 6, 13 (1st Cir.
2003) (quoting Griggs-Ryan v. Smith, 904 F.2d 112, 115 (1st Cir. 1990)), and draws all
inferences “in the light most favorable to the party opposing the motion,” Oleskey ex rel.
Boumediene v. U.S. Dep’t of Def., 658 F. Supp. 2d 288, 294 (D. Mass. 2009) (quoting Founding
Church of Scientology of Wash., D.C., Inc. v. Nat’l Sec. Agency, 610 F.2d 824, 836 (D.C. Cir.
1979)), but it will not credit “conclusory allegations, improbable inferences, [or] unsupported
speculation,” Cochran v. Quest Software, Inc., 328 F.3d 1, 6 (1st Cir. 2003) (quoting Medina-
Munoz, 896 F.2d at 8).
III. DISCUSSION
In addition to a statutory claim, [Compl. ¶¶ 56–62], Despins raises three common law
claims: breach of contract, [id. ¶¶ 35–43]; breach of implied covenant of good faith and fair
dealing, [id ¶¶ 44–49], and wrongful termination, [id. ¶¶ 50–55]. The Court begins with
Despins’s common law claims before turning to his statutory claim.
5
A. Breach of Contract
Though Massachusetts has provided a statutory remedy in the form of Mass. Gen. Laws
ch. 149, §§ 148 and 150, discussed infra, common law breach of contract actions remain
available to plaintiffs seeking withheld wages. See Lipsitt v. Plaud, 994 N.E.2d 777, 782–83
(Mass. 2013). Despins asserts that his employment agreement required Knowledge AI to pay
him “pursuant to the [agreement] and consistent with the statutory mandates of the
Massachusetts Wage Laws,” [Compl. ¶ 38], and that Knowledge AI breached that agreement “by
not paying Despins his salary at the agreed Contract wage in a timely manner and by not paying
all his wages on termination,” [id. ¶ 39]. Despins admits, however, that following his
termination, Defendants “paid [him] what he was owed for his wages.” [ECF No. 46 at 13].
Though Despins also seeks triple damages, interest, litigation costs, attorney fees, punitive
damages, reinstatement, and forward wages for retaliatory termination, see [Compl. ¶ 43], he has
not articulated, and the Court is not aware of, a basis for awarding those other remedies under
Massachusetts contract law. See, e.g., DeRose v. Putnam Mgmt. Co., 496 N.E.2d 428, 432 (Mass. 1986) (“There are no punitive damages in contract.”) (first citing Hall v. Paine, 112 N.E.
153 (Mass. 1916); and then citing 5 Arthur L. Corbin, Corbin on Contracts § 1077 (1951)); id. at
431 n.4 (“[T]here can be no recovery for future lost wages . . . based on [a] contract at will.”).
Accordingly, because Despins concedes that he has already received all damages to which he
would be entitled if he prevailed on this claim, the claim is moot. See Town of Portsmouth, R.I.
v. Lewis, 813 F.3d 54, 58 (1st Cir. 2016) (“[A] [claim] is moot when the court cannot give any
effectual relief to the potentially prevailing party.” (quoting Am. C.L. Union of Mass. v. U.S.
Conf. of Catholic Bishops, 705 F.3d 44, 52 (1st Cir. 2013))); 13B Wright & Miller’s Federal
Practice & Procedure § 3533.2 (3d ed., Sept. 2025 update) (“A partial settlement moots the
6
settled claims . . . . Action by the defendant that simply accords all the relief demanded by the
plaintiff may have the same effect as settlement. . . . Individual issues may be mooted in this
way . . . even though other matters remain to be resolved.”).
B. Breach of Implied Covenant of Good Faith and Fair Dealing
Despins claims that Knowledge AI breached the implied covenant of good faith and fair
dealing by failing to pay him wages when due, [Compl. ¶ 46], firing him for demanding his right
to be paid, [id. ¶ 47], and failing to adhere to the compensation schedule allegedly required by
the contract and by Massachusetts wage laws, [id. ¶ 48]. The most that Massachusetts law
permits a plaintiff to recover on a claim of breach of implied covenant of good faith and fair
dealing, however, is “money that he had fairly earned and legitimately expected,” King v.
Driscoll (King II), 673 N.E.2d 859, 861 (Mass. 1996) (quoting Kravetz v. Merchs. Distribs., Inc., 440 N.E.2d 1278, 1281 (Mass. 1982)), which excludes “wages and . . . benefits unrelated to past
services,” id. (quoting Maddaloni v. W. Mass. Bus Lines, Inc., 438 N.E.2d 351, 356 (Mass.
1982)). Thus, as above, Despins could only recover past lost wages on his breach of covenant
theory, and as above, the claim is mooted by Knowledge AI’s payment to him of the wages that
he earned.
C. Wrongful Termination
Despins asserts that he was terminated “[i]n retaliation for insisting on compliance with
the Massachusetts wage laws,” and that such termination was wrongful as a matter of law.
[Compl. ¶ 54]. “[A]n at-will employee has a cause of action for wrongful termination only if the
termination violates a clearly established public policy.” King v. Driscoll (King I), 638 N.E.2d
488, 492 (Mass. 1994) (citing Flesner v. Tech. Commc’ns Corp., 575 N.E.2d 1107, 1110–11
(Mass. 1991)). If “a statute itself . . . provide[s] that an employer may not terminate an employee
7
for exercising rights conferred by the statute, . . . the common law public policy exception is not
called into play.” Meehan v. Med. Info. Tech., Inc., 177 N.E. 3d 917, 923 (Mass. 2021) (quoting
King I, 638 N.E.2d at 494 n.7); see Mello v. Stop & Shop Cos., 524 N.E.2d 105, 105 (Mass.
1988) (“[N]o common law rule is needed [where] the Legislature has also prescribed a statutory
remedy.”). As relevant here, Mass. Gen. Laws ch. 149, § 148A, provides a statutory remedy for
dismissals arising from an employee’s attempt to collect his or her wages. See Mello, 524
N.E.2d at 107 n.2. Accordingly, the Court will not recognize a separate theory of liability at
common law where a prohibition and remedy are already provided by Mass. Gen. Laws ch. 149,
§§ 148A, 150. See Lipsitt, 994 N.E.2d at 785 n.11; Lohnes v. Darwin Partners, Inc., No.
021299, 2002 WL 31187688, at *3 (Mass. Super. Ct. July 23, 2002) (“With an adequate
statutory remedy, there is no need for the common-law tort of wrongful termination to protect
this public policy.”). Because there is no claim for wrongful termination at common law on
these facts, the Court will grant summary judgment to Defendants on the wrongful termination
claim.
D. Massachusetts Wage Laws
In his complaint, Despins cites chapters 149 and 151 of the Massachusetts General Laws.
See [Compl. ¶¶ 56–62]. Those chapters contain numerous provisions related to wages and hours.
His memorandum opposing summary judgment specifies that he intends to refer to sections 27,
148, and 148A of chapter 149, and sections 11 and 19 of chapter 151. [ECF No. 46 at 13–19].
Chapter 151, including the particular provisions on which Despins relies, governs minimum
wages and overtime pay. See Mass. Gen. Laws ch. 151, §§ 1–2. Despins has not explained how
the sections of chapter 151 that he cites apply to his factual allegations, and given that his
8
$100,000 annual salary does not appear to violate any of those sections, the Court concludes that
chapter 151 is inapplicable.
As to his allegations under chapter 149, Despins claims that he was not paid weekly or
biweekly and that he was not paid out in full on the day that he was terminated, all in violation of Mass. Gen. Laws ch. 149, § 148; and also that his termination was retaliation for his assertion of
his right to receive weekly or biweekly pay, in violation of Mass. Gen. Laws ch. 149, § 148A.
[ECF No. 46 at 14–15]. He further argues that he is entitled to an award of attorney fees
pursuant to Mass. Gen. Laws ch. 149, § 27. [Id. at 13–14]. Section 27, which governs prevailing
wage schedules for professions such as “mechanics and apprentices, teamsters, chauffeurs and
laborers,” and paid to workers by “contractor[s] or subcontractor[s],” Mass. Gen. Laws ch. 149,
§ 27, is inapplicable here. The correct statutory section is Mass. Gen. Laws ch. 149, § 150,
which applies to all “employee[s] claiming to be aggrieved by a violation of [Mass. Gen. Laws
ch.] 149, § 148 or 148A,” Fernandes v. Attleboro Housing Auth., 20 N.E.3d 229, 237 (Mass.
2014), grants a private right of action, and provides for treble damages and attorney fees. Mass.
Gen. Laws ch. 149, § 150.
1. Timely payment of wages under § 148
Section 148 provides that employees must be paid “weekly or bi-weekly” and that “any
employee discharged from . . . employment shall be paid in full on the day of his discharge.” Mass. Gen. Laws ch. 149, § 148. The parties do not dispute that Despins was not paid as
required by Massachusetts law, but because, as Despins concedes, Defendants “ultimately paid
him . . . full triple damages as mandated,” [ECF No. 46 at 13], he has already recovered all
damages to which he would be entitled under this claim. That said, “[a]n employee . . . who
prevails in [an action under section 150] . . . shall also be awarded the costs of the litigation and
9
reasonable attorneys’ fees,” Mass. Gen. Laws ch. 149, § 150, and Despins seeks those fees and
costs, [ECF No. 46 at 13–14]. Defendants contend that he has waived his costs-and-fees claim
by failing to raise it earlier. [ECF No. 40 at 12 n.2]. The Court disagrees.
The record does not suggest that Defendants’ various payments to Despins formally
settled all of Despins’s claims as a matter of law, see [ECF No. 47 ¶¶ 84–88], and Defendants
have not articulated why they believe that Despins’ failure to raise the issue of costs and attorney
fees before those payments were made should constitute a waiver of his right to recover those
expenses. Where damages are resolved by payment of lost wages prior to judgment, the test for
whether a plaintiff is a prevailing party entitled to attorney fees is whether the suit “act[ed] as a
necessary and important factor in causing the defendant to provide a material portion of the relief
demanded in the plaintiff’s complaint.” Ferman v. Sturgis Cleaners, Inc., 116 N.E.3d 1196, 1203 (Mass. 2019). The Court notes that Despins commenced this action on July 2, 2024, [Compl.],
and Defendants answered on September 5, 2024, [ECF No. 6], but Defendants only attempted
their final payment to Despins for the first time on October 17, 2024, [ECF No. 47 ¶ 84].
Defendants have not provided any evidence, let alone established as a matter of law, that this
action was not the catalyst of their decision to pay him treble damages under Massachusetts law.
Accordingly, Despins’s claim under § 148 survives summary judgment as to costs and fees and
is otherwise mooted by the past payment. The Court notes that an attorney fee award must be
“reasonable,” Mass. Gen. Laws ch. 149, § 150, and that Despins’s failure to seek attorney fees
when Defendants paid him for his damages under § 148 may impact the reasonableness of any
further fees incurred after that payment, at least as to his § 148 claim.
10
2. Retaliation under § 148A
Despins alleges that his termination violated section 148A, which protects employees
from being “penalized . . . in any way as a result of any action on the part of an employee to seek
his or her rights under the wages and hours provisions of this chapter,” Mass. Gen. Laws ch. 149,
§ 148A. See [Compl. ¶¶ 61]. Despins must show “(1) that he engaged in conduct that
the . . . Massachusetts wage and tips law protect[s] . . . , (2) that [Defendants] subjected
[Despins] to an adverse employment action when [they] . . . fired him, and (3) that [they] fired
him because of his protected conduct.” Travers v. Flight Servs. & Sys., Inc., 808 F.3d 525, 531 (1st Cir. 2015) (first citing Claudio-Gotay v. Becton Dickinson Caribe, Ltd., 375 F.3d 99, 102 (1st Cir. 2004); and then citing Smith v. Winter Place LLC, 851 N.E.2d 417, 421 (Mass. 2006)).
Defendants argue that Despins “failed to engage in protected conduct before the termination
decision was made,” [ECF No. 40 at 15], and that he “cannot establish causation,” [id. at 16],
because Despins was terminated for failure to perform his responsibilities.
Despins has shown at least a genuine dispute of material fact as to whether he engaged in
protected activity. Massachusetts courts interpret the words “any action” broadly, and the
provision “certainly includes complaints made to the management of the employer.” Smith, 851
N.E.2d at 421. Though Defendants seek to characterize Despins’s emails as “mere inquiries,”
[ECF No. 40 at 15], it is clear that Despins’s June 12 email to Schreiber, which stated, “I have
not been paid yet despite the email telling me that I would,” [ECF No. 47 ¶ 28], amounted to a
complaint about his wages, at least in light of the numerous earlier emails requesting information
about when he would be paid. That email was sent two days before Defendants claim they
decided to terminate Despins, [id. ¶¶ 28, 55], so Defendants’ contention that “Despins failed to
11
engage in protected conduct before the termination decision was made,” [ECF No. 40 at 15], is
unavailing.
Despins has also demonstrated a genuine dispute of material fact on causation. Though
Defendants point to the lack of documentation establishing that Despins did his work, see [ECF
No. 40 at 16], they have not disproven, as a matter of law, Despins’s contention that he was
actually terminated because of his protected activity. A reasonable factfinder could credit the
“timing of the adverse action”—in other words, the temporal proximity between Despins’s
request for his wages and his termination—as sufficient circumstantial evidence to find in
Despins’s favor on causation. Biewald v. Seven Ten Storage Software, Inc., 113 N.E.3d 881,
889 (Mass. App. Ct. 2018) (citing Verdrager v. Mintz, Levin, Cohn, Ferris, Glovsky & Popeo,
P.C., 50 N.E.3d 778, 802–03 (Mass. 2016)). Defendants have thus failed to show that they are
entitled to judgment as a matter of law on Despins’s retaliatory termination claim.
IV. CONCLUSION
For the foregoing reasons, Despins’s breach of contract and breach of covenant claims,
[Compl. ¶¶ 35–49], are DISMISSED AS MOOT, and Defendants’ motion for summary
judgment is GRANTED as to Despins’s wrongful termination claim, [Compl. ¶¶ 50–55], but
DENIED as to Despins’s statutory claims under Massachusetts law, [Compl. ¶¶ 56–62].
SO ORDERED.
March 12, 2026 /s/ Allison D. Burroughs
ALLISON D. BURROUGHS
U.S. DISTRICT JUDGE
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