- 17 -
Thus, at the conclusion of this series of transactions,
Intercoastal held, as an advance, the $2.4 million in checks that
it had issued to the partners in exchange for their notes, and
the partners owed Intercoastal $2.4 million on their notes.
The above transactions are depicted in Illustration No. 1,
infra p. 25.
Operation of MIT 80
Following execution of the employee leasing agreement the
same employees and independent contractors who had performed
services for Machise continued to perform the same services
for Machise. Neither Machise nor MIT Personnel--the prior
employers--gave written notice of termination to the employees
and independent contractors. The employees and independent
contractors did not submit formal employment applications to MIT
80.
Bucci and Ingemi were the individuals most knowledgeable
about the detailed work assignments of Machise's employees.
They actually directed and controlled the activities of those
employees. However, there was no provision in the employee lease
with MIT 80, purportedly the new employer, or any other document,
under which Bucci and Ingemi were to provide such direction and
control. Nor was there any provision in any agreement for
remunerating Intercoastal, Bucci, or Ingemi for undertaking to
manage the Machise personnel on behalf of MIT 80. Machise made
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