An Anne Arundel County jury has found Strategic Tax Planning, an accounting firm owned by prominent local attorney Glen Frost, liable for unjust enrichment and breach of contract, ordering the firm to pay over $680,000 in damages to three plaintiffs who claimed they were denied promised commissions for client referrals.
Key Evidence from the Verdict
- Total damages awarded: $683,943
- George Divel III: $434,025 (unjust enrichment)
- Gary Stastny: $233,565 (unjust enrichment)
- Chris Callaway: $16,353 (breach of contract)
- Case duration: 4-day jury trial
- Presiding judge: Hon. Pamela Alban
The Core of the Dispute
The lawsuit, filed in August 2023, centered around allegations that Frost's accounting firm, Strategic Tax Planning, failed to pay agreed-upon commissions to three individuals who referred clients seeking the Employee Retention Credit (ERC) - a COVID-19 relief program offering refundable tax credits to businesses that maintained employees during the pandemic.
Text messages presented as evidence showed Frost had offered the plaintiffs a percentage of fees generated from clients they referred. However, the defense argued that no formal contracts existed and that the arrangements weren't subject to Maryland's wage protection laws.
Glen Frost
Managing Partner, Frost Law
Owner, Strategic Tax Planning
Prominent Anne Arundel County tax attorney with multiple business ventures in tax consulting, real estate, and investments.
Tax Companies
- Strategic Tax Planning
- RCN
- CMB
- Lombardo, Ayers
- Krem McCarthy
- Frost Tax Controversy
Other Ventures
- Frost & Associates
- Foundation Wealth
- Multiple real estate holdings
- irstaxlitigation.com
- districtofcolumbiataxattorney.com
- floridataxattorney.com
Legal Proceedings and Outcome
After a four-day trial in Anne Arundel County Circuit Court, the jury returned its verdict on March 24, 2024, finding Strategic Tax Planning liable on three counts. Notably, Frost and other individual defendants were dismissed from the case prior to verdict.
The plaintiffs' attorney, Timothy Mummert, argued that his clients had performed substantial work to recruit ERC clients for Strategic Tax Planning with the clear expectation of compensation. "The jury saw this case for what it was, and we believe justice was served," Mummert told reporters after the verdict.
"The independent contractor agreement offered to my clients was inadequate, and the commission percentage was constantly changing. The parties agreed to 'figure this out later,' but that never happened in good faith."
Post-Trial Developments
On April 4, Frost, his law firm, and former Frost Law partner Eli Noff filed a joint motion to partially vacate the verdict, arguing that the verdict sheet incorrectly included them when claims against them individually had been dismissed. This left Strategic Tax Planning as the sole entity liable under the judgment.
Maryland court records indicate the judgment was satisfied on April 2, with the full amount being paid.
Broader Implications
This case highlights several important legal and business considerations:
Legal Precedents Established
- Unjust enrichment claims can succeed even without formal contracts when the circumstances make retention of benefits inequitable
- Text messages and informal communications can establish contractual expectations
- Maryland courts take seriously promises of compensation for business referrals
- The distinction between employees and independent contractors remains a complex legal issue
The verdict also raises questions about attorney-owned ancillary businesses and the ethical considerations surrounding such arrangements, particularly when they involve fee-sharing with non-lawyers.
About the Plaintiffs
The three plaintiffs came from different backgrounds and received varying awards:
- George Divel III: Florida resident awarded $434,025 - the largest portion of the judgment
- Gary Stastny: Another Florida resident who received $233,565
- Chris Callaway: Anne Arundel County local whose smaller $16,353 award was for breach of contract rather than unjust enrichment