The art investment platform Masterworks is suing an employee that it says threatened to bring a lawsuit against the company for wrongful termination.
The claim, filed in New York State Supreme Court last week, names Hai Min Tran, a former chief product officer for the firm, as the defendant and alleges that he “has threatened to commence a wholly meritless lawsuit against the company, based on the allegation that he was unlawfully and involuntarily terminated upon returning to work from paternity leave.” The lawsuit says that Tran “voluntarily resigned” from the company prior to the leave.
A representative for Masterworks declined to comment. Tran could not be reached for comment. The firm said to be representing him did not immediately respond to an email seeking comment.
According to the complaint, Tran told Masterworks CEO Scott Lynn that he resigned and planned to relocate his family from New York, where the company is based, to the West Coast. As a gesture of “goodwill,” the company says it told Tran that, if there was work for him after his paternity leave, they would consider “reengaging him as a contract employee, on special projects,” according to the court papers.
Masterworks alleges that at the end of the paternity leave, Tran sought to return to the company part-time but that there was no project available. He then attempted to “leverage a severance payment,” the firm claims.
The company says that Tran took the “ludicrous position” that his resignation from his position did not actually mean quitting the company and that he was entitled to either work or severance. He was at the company for about seven years, beginning in 2018.
The 11-page complaint includes screenshots of Slack conversations between Lynn and Tran. In one, they discuss what they believed was the plan after the paternity leave. Lynn writes that he is “confused” and “not following” Tran, writing: “you resigned prior to leaving; you then said you wanted to do some hourly work; we talked about not having any work now when you and I last messaged.”
Tran responds: “Show me where I resigned/I said I was open to part time/reducing my hours.” In December, Masterworks said it received a demand letter from Tran’s attorney threatening a lawsuit.
The company is asking for a declaratory judgment stating that Tran resigned and seeking attorney fees and costs associated with its suit.
