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HomeMy WebLinkAbout98-02412 11) \) ~ ~ Iq ~ ~! 'I '" ).... - ..... " '.. (Q J I , / r ... ~ - . . ~ . - CJ ,4 - ,..1 r-\ ~l .1 ~\ Xo\'j\P ,~. ~., D t::! ..J '->1 ~~~ ~ ~/ ~ . v..~ ~\ c:'J - ;:...\ .. ,-) ~. "F Cl~ ~. 0r--" .....) (..~ ('i n .0 ~ (" 01 ~i;; J':--" ~j ....'j\.;... ..,., ~<q 1', ~':1 "1" "'f ...;:.) ~,' "I"j -;; \ " 0') ;-~ (1") .... .' " , ':.i~) .' ... :- ~'~ }.':;.1 ..... i.)C') , '-:? (';11-11 ( ,_., :...., '.:l :,., )' (JI ~~ , ~ 4. From September 1976 through June 1996, Plaintiff Charles M. Billys Was employed as llI1independent contractor and sub.agcnt with the Pat Andersonlnsnrancc Agency engaged in the sale and solicitation of long term care insurance policies in the Commonwealth, pursuant to an oral contract with the Agency, which included Mr. BiUys right to renewal commissions on the policies he produced, 5, In or around March 1992, Plaintlfl' Charles M, Billys retired from the active solicitation ofinsurlll1ce, but continued to service some existing policyholders oflhe Pat Anderson Insurlll1ce Agency, at their request. 6. While acting as llI1 authorized sub-agent to the Pat Anderson Insurance Agency, Mr, Billys IIctively solicited the purchase of long term care insurance products (policies) from Prospective policyholders; took insurance applications; wrote and delivered policies llI1d serviced policyholders 1'01' the Agency. 7, In exchange for performing his various duties as a sub.agent, Charles M, Billys was paid commissions by the Pat Anderson Insurance Agency on new policies written by Mr. Billys and the renewals of those policies as long as the policies remained in place llI1d the premium for the policies were paid, 8, Plaintiff Charles M, BIUys was vested in his right to receive renewal commissions on pollcies written throllgh the Pat Anderson Insurance Agency, in 1973, 9, Part and parcel to his sub-agency agreement with the Pat Anderson Insurance Agency and consistent with the custom and practice of the insurlll1ce industry in the sale of Life, Accident. 2 and Health insurance, was the understanding that Mr. Billys' vested right 10 receive renewal commissions would survive his death and also survive his retirement from the Pal Anderson Insurance Agency conditioncd upon Mr, Billys rcfraining from sales with II competitor to thc Pat Anderson Agency. 10. The amount of commissions paid to Mr. Billys by the Pat Anderson Agency was fifty percent (50%) of premiums on first year business and a flat ten percent (10%) rate on renewal business. II, For twenty (20) years, pursuant to terms of his sub-agency agreement with the Pat Anderson Insurance Agency, Mr. Billys received first year and rcnewal commissions at the percentages set forth in paragraph ten (10) above from the Pat Anderson Insurance Agency on policies placed by him, Copies of commission statements documenting payments to Plaintiff from the Pat Anderson Insurance Agency arc jointly attached hereto as "Exhibit A" and incorporated by reference herein, 12. The payment of commissions to the Plaintiff from the Pat Anderson Insurance Agency ceased at the time of the death of its owner, Patricia D. Anderson, on June 20, 1996, 13. On December 31, 1996, through a written agreement ("the Agreement"), the Estate of Patdcia D. Anderson was sold and was transferred to the Pat Anderson Insurance Agency with all its interests and assets therein to Defendant Donald E, Barnes. A copy of the December 31, 1996 Agreement is attached hereto, incorporated herein and marked as "Exhibit BlI' 14. Prior to the execution of lhe December 31, 1996 Agreement (see, Exhibit B), :1 31. As a result of Defendnnt's intentional, malicious and fraudulent stntements, Plaintiff . has beQn deprived of vested renewal commissions to which he is entitled, Count Three. Accountin/: 32. Pnragraphs I through 31 of the Complaintnre Incorporated herein as if set forth In their entirety. 33, Defendant Donald E, Barnes, as successor to the Pat Anderson Insurance Agency, accepted direct payment of commissions from insurance companies for renewal business on policies written and/or placed by Chnrles M. Billys, 34. Plaintiff Charles M. Billys is unable to determine the exact commissions to which he is entitled without all of the necessary account infonnatlon, including but not limited to, collections of increases in premium amounts and lapsed policies, which is maintained by Defendant. Quwt Four. Vnlus, Enrichment 35. Paragraphs I through 34 of the Complaint are incorporated herein as if set forth in thllir entirety. 36. Since in or nround June 20, 1996, Defendant Donald E, Barnes has refused to pay 7 Relief l{eaUC5tclj WHEREFORE, Plaintiff Chlldes M, Billys respectfully requesls this court to render judgment with regard to all Counts In its favor Ilnd against Defendllnt Donllld E, Barnes, individually and as successor in interest to the Pllt Anderson Insurance Agency, for the following: n) Damages In an IImount in excess of $50,000 for Plaintiffs loss of commissions, reasonuble anticipated income and other losses; b) An Accounting; c) Damages for unjust enrichment; d) Punitive Damages; e) Interest; f) Costs of Suit and Attorney Fees; and g) Such other relief as the Court may deem app~0priate. Date: December 11, 1998 Re~~mitted' By: ~ ~?<",,-_----........ __ ,/~~el <1, Brown, Esquire 1.0,/179986 Balaban and Balaban 27 North Front Street 1',0. Box 1284 Harrisburg, I' A 17108-1284 (717) 234-3282 Attorney for Plaintiff ,j O:\D&DIC1.IIlNTS\334\D11.1. 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'I . ,J. /1 i ,. . plnd their heirs, successors, assigns, pereonal representatives, do hereby covenant, promise, nnd agree 8S follows: 1: Seller shall transfer any and alllntarest that it may have in any assets or liabilities of the Pat Anderson Insurance Agency to Buyer, In consideration of the payment of ONE THOUSAND AND 00/100 ($l,OOO.OOl DOLLARS, which was determined to be the fair market value of the agency per the appraisal of the decedent's accountant which is attached hereto and marked as Exhibit A. 2. Buyer shall continue to a~sume all responsibility for the operations of the agency, and Is entitled to receive any and alllncom6 derived from any commissions that have accrued since the date of decedent's death until the data of this Agreement, and all those derived thereafter. 3. Seller shall contact any and all Insurance companies advising them of the transfer of the agency to Buyer, and will take whatever steps are necessary to divest Itself of any Interest It may have relative to the insurance companies. 4. Buyer agrees to provide Seller with en allocation of any and all Income derived by daoedent until the date of her death which shall be attributable tl> her 1996 taxable Income, and will be responsible for any and all Income derived by the agency. from the date of decedent's death on June 20, 1996, until the end of the year. Further, Buyer agrees to provide any and all W-2 filings to any and all employees of the agency for the 1996 taxable year, and further is responsible for 2 I \~-, '." '..-....-. e.rllft./ p.tA...4~...I.., .......~ _V~IHIIIMIOI CI~"IIID I'\lIUlI ACttI<.HI NIII WN. '''' H. rllY. "". ClI'A U'I ~I\I IUroaD P.IVI .IM om oarr.., rL IIIU , cnll '''-Jl'' RHONDAL. DAVIS LAW OFFICES OF ROBERT B. 125 EAST THIRD STREET WILLIAMSPORT, PA 17701 DEAR RHONDAI IN RESPONSE TO YOYR LETTER OF NOVEMBER 4, 1996 REGARDING THE ESTATE VALUATION OF'THE INSURANCE BUSINESS OF PATRICIA ANDERSON, I OFFER THE FOLLOWING DATA. NOVEMBER 12, 1996' WAYNE AS I MENTIONED TO YOU ON THE TELEPHONE, I AM NOW RETIRED AND HAVE ONLY THE PREVIOUS FOUR YEARS OF TAX RECORDS IN MY POSESSION. HOWEVER, THESE FORU YEARS GIVE A FAIR REPRESENTATION AS TO THE VALUE OF HER PRACTICE AT THE TIME OF HER DEATH. ALL TilE FURNITURE AND EQUIPMENT SHE USED WAS FULLY DEPRECIATED FOR TAX PURPOSES AT THE TIME OF HER DEATH. HER GROSS FEES FROM INSURANCE COMPANIES DECREASED 37' BETWEEN 1992 AND 1995 (143,000 TO 90,300). THIS WAS DUE TO SEVKRAL REASONS. (1) A DECREASE IN PERCENTAGE OF COMMISSIONS ON POLICIES WRITTEN, BY SEVERAL OF THE COMPANIES. (2) A DECREASE IN THE NUMBER OF COMPANIES FOR WHICH SHE WAS ABLE TO . waITE INSURANCE. SOME COMPANIES WILL TERMINATE AN AGENT UNLESS A CERTAIN VOLUME OF BUSINESS IS WRITTEN. (3) A LOSS OF SEVERAL AGENTS, WHO AFTER LEAVING, BEGAN TO WRITE POLICIES WITH THE SAME COMPANIES. ALTHOUGH HER BOTTOM LINE WENT FROM A LOSS OF $3309 IN 1992; A LOSS OF $8776 IN 1993, TO A PROFIT OF $9806 IN L994 AND $5893 IN 1995/ THESE INqREASES WERE DUE TO THE MAJORITY OF WORK BEING DONE OUT OF HER HOME, THEREBY REDUCING OPERATING EXPENSES TO THE BONE. HOWEVER, THIS CERTAINLY IS NOT A LIVING TO BE EARNED BY A PERSON WITH THE RESPONSIBILITY OF OPERATING A BUSINESS AND ITS HEADACHES. FACTOR IN A MINIMUM $15,000 A YEAR SALARY, AND IT IS OBVIOUS THAT THIS IS A NEGATIVE OPERATION. PATRICIA ANDERSON HAD A COMFORTABLE LIFE STYLE, BUT IT IS BECAUSE OF THE INHERITANCE FROM HER FIRST HUSBAND, AND INCOME SHARED WITH HER SECOND HUSBAND, RUDY, THAT MADE HER LIFESTYLE WHAT IT WAS. FRO~I THE ABOVE FIGURES YOU CAN ASSUME PROPERLY, THAT SHE HAD TO INFUSE HER OWN FUNDS TO KEEP THE AGENCY AFLOAT. ~, (') V) 0 ~ to Tq (::"';) of -uhc r':1 ;;\:rJ rOqj (, r- f"..... "'8 ~.:': {" ';'} ,\ ~ ,r..- jl\- i;~-~ ;<, <)~l, --~ ~j -..,., ,j~ ,)f;() :.r. {j", ....~ ( \ iSn p. ,,' 1.- ~- ~ .. ~ ::3 ~., :n .- -<; 6, Denied, Defendant Donald E, Barnes Is without knowledge or Information sufficient to form a belief as to the truth of the averment of Paragraph 6 and specific proof thereof Is demanded Elt trial. 7. Denied, Defendant Donald E. Barnes Is without knowledge or Information sufficient to form a belief as to the truth of the averment of Paragraph 7 and specific proof thereof Is demanded at trial. 8, Denied. Defendant Donald E, Barnes Is without knowledge or Information sufficient to form a belief as to the truth of the averment of Paragraph 8 and specific proof thereof Is demanded at trial. 9, Denied, Defendant Donald E. Barnes Is without knowledge or information sufficient to form a belief as to the truth of the averment of Paragraph 9 and specific proof thereof Is demanded at trial. 10. Denied, Defendant Donald E. Barnes is without knOWledge or Information sufficient to form a belief as to the truth of the averment of Paragraph 10 and specific proof thereof is demanded at trial. 11. Denied, Defendant Donald E. Barnes is without knowledge or Information sufficient to form a belief as to the truth of the averment of Paragraph 11 and specific proof thereof Is demanded at trial. 12, Denied. Defendant Donald E. Barnes is without knowledge or Information sufficient to form a belief as to the truth of the averment of Paragraph 1 2 and specific proof thereof Is demanded at trial. 2 :\f 13, Denied. It Is denied that on Deoember 31, 1996, through II written agreement the estete of Patricia D. Anderson WBS sold, On December 31, 1996, through a written agreement, the estate of Patricia D. Anderson, by and through Its executor, Steven B. Coslett, of 3282 S,E, River Vista Drive, Port St. Lucie, Florida, sold any and all Interest In the Pat Anderson Insurance Agency, which was an asset of the decedent at the time of her death, to Donald E, Barnes. 14. Admitted. 15, Admitted in part, denied In part. It Is admitted that In or around July of 1996, Plaintiff requested payment from Defendant Donald E. Barnes for renewal commissions for June 1996. It Is denied that Defendant Donald E. Barnes told Plaintiff that he would be paid when they were received, 16. Denied, It Is denied that on numerous occasions "after to June of 1996, Plaintiff requested Defendant Barnes to pay him renewal commissions from the Pat Anderson Insurance Agency which were overdue; and was told by Defendant that there were attorney fees which Defendant needed to pay In connection with the death of Patricia D, Anderson, which once paid would allow for the remittance of commissions to Mr. Blllys", and sp~clfic proof thereof is demanded at trial. By way of further answer, it Is denied that renewal commissions were due or overdue to Plaintiff. Furthermore, Defendant Donald E. Barnes made no 3 representation to Plolntlf'f that remlttanoe of commissions would be made to Plaintiff. 17. Admitted In part, denied In part, It Is admitted that pursuant to Paragraph 2 of the Agreement Included as Exhibit "B" of Complaint, Buyer Donald E, Barnes "shall continue to assume all responsibility for the operations of the Agency, and Is entitled to reoelve any and all Income derived from any commissions that have accrued since the date of decedent's death until the date of this Agreement, and all those derived thereafter," It Is denied that Paragraph 2 of the Agreement Included as Exhibit "B" of Complaint Includes the remittance of vested renewal commissions to Plaintiff accruing since June 20, 1996, 18. Admitted In part, denied In part. It Is admitted that pursuant to Paragraph 4 of the Agreement Included as Exhibit liB" of Complaint, Buyer Donald E. Barnes was "responsible for the payment of any and all debts and liabilities of the Agency that accrued from the date of decedent's death until the date of this Aareement." Emphasis added. It Is denied that debts and liabilities accrued from June 20, 1996, in Paragraph 4 of the Agreement included as Exhibit "B" of Complaint included the remittance of vested renewal commissions to Plaintiff. 19, Admitted In part, denied In part, It Is admitted that Plaintiff has demanded payment of commissions from Defendant Donald E. Barnes. It is denied that Plaintiff Is entitled to vested renewal commissions. 4 ~i 20. Denied. Defendant Donald E, Barnes Is without knowledge or Information sufficient to form a belief as to the truth of the averment of Paragraph 20, and specific proof thereof Is demanded at trial. Count OD!! 21. The averments of Paragraph 1 through 20 are Incorporated by reference as If fully set forth. 22. Denied, Defendant Donald E. Barnes Is without knowledge or Information sufficient to form a belief as to the truth of the averment of paragraph 22 and specific proof thereof Is demanded at trial. 23, Denied. It Is denied that Plaintiff had a contract with the Pat Anderson Insurance Agency that provided that Plaintiff would solicit long.term care Insurance policies for the Agency and in return would receive compensation In the form of commissions from the Pat Andersol1 Insurance Agency and Its successor Agency, and specific proof thereof Is demanded at trial, 24. Denied. The Pat Anderson Insurance Agency has been defunct since Dt)cember 31, 1996. Furthermore, Defendant Donald E, Barnes Is not wrongfully withholding any commissions from Plaintiff, 26. Denied. It Is denied that renewal commission payments are due Plaintiff from the Don Barnes Insurance Agency, and specific proof thereof is demanded at trial. 5 26, Denied. It Is denied that Defendant Donald E, Barnes Informed pollnyholders that Charles M, Blllys was dead. By way of further answer, Defendant Donald E. Barnes made no knowing and willful effort to have policyholders cancel policies written by Plaintiff. 27. The allegations of Paragraph 27 state a legal conclusion requiring no answer. 28. The allegations of Paragraph 28 state a legal conclusion requiring no answer. By way of further answer, It Is denied that Defendant Donald E, Barnes has committed fraud, Count Two 29. Paragraphs 1 through 28 are Incorporated by reference as If fully set forth. 30. Denied. The averments of Paragraph 30 state a legal conclusion to which no response Is required, By way of further answer, Defendant Donald E. Barnes made no false representation to any policyholders that Plaintiff was deceased. 31. Denied. The averments of Paragraph 31 state a legal conclusion to which no response Is required. By way of further answer, it Is denied that Plaintiff Is entitled to vested renewal commissions from the Pat Anderson Insurance Agency. 6 Count Thfe~ 32. Paragraphs 1 through 31 are Incorporated by re'ference as If fully set forth. 33, Admitted, By way of further answer, two (2) years before Patricia D. Anderson's death, Patricia D, Anderson assigned various accounts to Defendant Donald M, Barnes due to non-servicing by Plaintiff. Furthermore, Plaintiff Charles M. Blllys failed to repay the Pat Anderson Insurance Agency for the rescissions of the policies written by Plaintiff. 34. Denied. Defendant Donald E. Barnes Is without knowledge or Information sufficient to form a belief as to the averment of Paragraph 34, and specific proof thereof is demanded at trial. By way of further answer, it is denied that Plaintiff Is entitled to an accounting by Defendant Donald E, Barnes without proof of a contract between the Pat Anderson Insurance Agency and Its heirs, executors, successors or assigns. Count..f2yr 35. Paragraphs 1 through 34 are Incorporated by reference as if fully set forth. 7 36, Admitted In part, denied in part, It Is admitted that Defendant Donald E. Barnes has not paid Plaintiff renewal commissions, By way of further answer, It Is denied that Plaintiff Is entitled to renewal commissions on insurance policies which he placed through the Pat Anderson Insurance Agency and that Plaintiff Is vestad, 37. Denied, The averments of Paragraph 3'1 state a legal conclusion requiring no answer, By way of further answer, It Is denied that Defendant Donald E. Barnes has Illegally retained an,! commissions of Plaintiff. 38. The averments of Paragraph 38 state a legal conclusion requiring no answer. ~EW MATT.m 39, Plaintiff has failed to state a causa upon which relief can be granted. 40. Plaintiff has waived the claims set forth In his Complaint. 41, Plaintiff Is estopped from assNtlng the claims set forth In his Complaint. 42. The claims set forth In the Complaint are barred by operation of the doctrine of the Parol Evidence Rule. 43. The claims set forth In the Complaint are barred by the applicable Statute of Limitations. 44. The claims set forth In the Complaint are barred by failure of consideration. 46. Plaintiff has no contract with the Defendant, 8 CHARLES M. BILL YS, Plaintiff IN TIlE COURT oV COMMON PLEAS CUMBERLAND COUNTY, PENNSYLV ANIA No. 98-2412 v. DONALD l\, BARNES, a~ succe~sor in Interest to the Pat Anderson Insurance Agency and indivlduully, D~f~ndant CIVIL ACTION - LAW JURY TRIAL DEMANDED CERTIFICATE PREREQUISITE TO SERVICE OF A SU\WOENA PURSUANT TO RUU: 4009.22 '" , ,,,,,qu"'" to ",,'00 of , "bp"'" fo> '''' um"" ,m! thl"" pu~u",t " Rul' 4009.22, Plaintiff Charles M. Billys certilics that: ( , ) "",,,won,,,", to ,,'" tho """,,"' wit, , ,,"' ,oho ",,,,,,, "'t",,", "....' was mailed or delivered to each party at least twenty (20) days prior to the date on which the subpoena is sought to be served, (2) ,,," 01" out'" uf I'''"', ,,, Iud'"~ tho pm,,,,", "'P""'" " ,,,,,,hod to ",. eertilicate, (3) no objection to the subpoena has been received, and (4) tho "bl"'" whl,b w\1\ ho ,,",' ;, I'''''''' to tho "b,,,,," wh"b ;, ""bud to the notice of intent to serve the subpoena, Date: April 22, 1999 .f d~ .y;(/ . ,/> ,:''> .' J .- .....-------- - Michael <1, Brown, Esquire l.D, #79984 Balaban and Balaban 27 North Front Street P.O. Box 1284 Harrisburg, PA 17108- 1284 (7\7) 234-3282 Attorney for Plaintiff U:\n&8\CUUNTS\.'M\UI1.l,YS\('[l,RlW \ I. A" doo""" '", 1'.1""",, h", ",,' Ii"" "d ''', Ii I"., ""'N" """""", ",,," """"'''''' "'''I "",,'" ''''I"" "'"iI., '''''''m'", ( '/""1". M, /Jllly, Ii.", J."." I '% tll/'oug!1 to fhe /lreselll; lixhibit "II" 2, A" d,."""" I.., ""I"dI"" h,,, ",,' Ii "'iI ," '''' Ii b, '''''ro" """"m" ..."" """''''''', ,," "",'" ,~,,," "'.iI,., 0000"",,,, 1;"'''101 Ii II"",,,. Ii"", '''''"'' /99, tlJrougll fo the present; 4, A" doo""",,,o, ''''/ ,," "" h", "'" Ii"",,,,, ''', '"'"""''' ""Ii,'", id,,, Ii fy'" C/'''I". M, Hill"" ,'" Wrili", .,"'" '" ""~OJ "f ~'''ro Ii" " ''''''""'' ""Ii" 10",,/ by /'0"" "'''' LiI""'"m"" """''''''' Ii"", J"",,, /996 'b"'<1i ,,, II. "'''"' 3, A/J d"".",,,,, "./.Ii"" h", ",,' Ii,,,, "~" ''', lib, ''''''ro" """,,,,,,, "'00' "",,,,,,"". "d 00",,,,,,,,,,,, ""'ii" """m, '" /'I" I'", A "d""."" 1","",,_ A,,,,,, {rom ,hlOllllry 1996 through to the present; 1I:llJolOICI.II1N.,.Sll.14UJlI". YS~""."'lb I I \0 \,,,') r',) .. C'J "'\1 I ':i;:n >\n ":J t!:; :rt )('> '-:\'1\ :-~~~ ' '.;.:1 :.<.;. "'\<1 ',J ~ \J r',) t.....i ~,., l~) Exhibit HA" I, All documcnts, including, but not limited to, Illes, records, accounts, agent statements and conunission detnils, concerning (:hnrles M, Ilillys Ihllll January 19911 through to the prcscnt; 2, All doclllmmts, including, but not limitcd to, lilcs, records, accounts, agent statcments nnd commission ddnils, conccrning I )onl\ld 1'.. Hamcs 1'1'0111 January I ()<)() through to the prcsent; ), All documcnts, including, but not IimitcJ 10, I1lcs, rccords, accounts, lIgent statements and commission dctails, concel'lllngl hc i'nt Andcrsoo insurancc Agcncy fro 111 January 1996 tbrough to the pl'l'sent; 4. All documents, including, hut not limited to, insurance policies, identifying Charles M, Biilys as the writing ngent 01' ngcnt 01' rccord Ii))' an insurance policy issucd by Penn Treaty Life Insurance Company from Jnnuary I'll)(, through to the present. tJ:lO&mCI,IHNTS\JJ411l11.I:YSIsUbo.,hlh IN THe COURT OF COMMON PLfAS OF CUMBfRLAND COUNTY, PfNNSYL VANIA CHARLI!S M. BILLYS, P','ntl" vs. DONALD E. BARNES, as successor In Interest to the Pat Anderson Insurance Agency and Individually, Dcl'wnd.nt CIVIL ACTION - LAW NO. 9S. 2412 (:~RTIFICATE OF SI;RVIg; I, Rhonda l.. Davis, Attorney for Defendant, hereby certify that a true and correct copy of the foregoing Defendant's Response to Plaintiff's First Request for Production of Documents was served on Michael V, Brown, Esquire, by U,S. Mall, First Class, at the address of Governor's Row, 27 North Front Street, P,O. Box 1284, Harrisburg, Pennsylvania 17108-1284. ELlON, WAYNE, GRIECO, CARLUCCI, SHIPMAN 8r. IRWIN, P.C. BY: Rho da L. Davl , quire Attorney for Donald E. Barnes, Defendant 10# 80040 125 East Third Street Wllllamsport, PA 17701 (570) 326-2443 C'. ~-~. t,O l..e. DATf'!1 Novem~et 10, 1999 -"'-, ri) i;,',-:'! 1'--' , r-, ;\:;; -.:>-~ "~; ::n ':'---::1; '-' <'I :J.i ""< i>~~ ~-~. Cr,) f~'L w~ ~;~._ :3 , :;} ... -. .. :.;) '" ,I " ~ONCLtJSION In view 01' the foregoing, I'luintll'l's' Murch 22,2000 Motion should be grunted und lIctlon Nos, 98-2412 und 00-2698 consoliduted, Respectfully submitted, By: ~,1 M ehue1 V, Brown, Esquire LD, 1179984 Buluban and Baluban 27 North Front Street \,,0, Box 1284 Harrisburg, P A 17\ 08-1284 (717) 234-3282 - voicc (717) 233-4264 . lilcsimile ----..-.-....- Date: May 22, 2000 Attorney for Plaintiffs " O:\U&8\CLlHNTS\lJ4\IlII.l.YSlnRlllI'l 5 4/y[' O/J I'll 'J !VO . I.vdQ If-; I'll P.'l 'Y, I I.n 111,. aCr~ ~'2'''' "lIm cel el. ..J ,.'~. Iltr. i/Yo/' <JO '~/O lic Il1. c/J111 1101/ /I/Jel II)' c/Jt ' fo COr ' <Or' '/J fl ,. C rCet , vO, I 111 fJ, ol/v COp . 1l1.' /Jltcel' . oIl,!"" 'J' o/'fl lehllel ,Sl' "01/ IIC ,. V iltea Of ,orc ' /Jrl ~/l11 "'Cllo 'l101l1g ~. )WI1. I; , Po /J.y '~/C -.vq Stilge lipol1 lIl,)/, lilre I. PI"". . the .' '111/'1" , IOrcb v.lld ' lOll. '" 'J' ' lor . Ow' ofl COlt//' Ilrst lllg I II", I Y th elllss d. /Jdll'/et. 11 Slip lit cll~ /Jill b '/JON Oly. 'J'pl. Of , ill" lllg II ' lis '!::d'l't-. _ ~ ~""- ~' Rho PI! 1Id.11 o/J -, /) S'h' '!V,I Ill',' 1 lop ''J' Y :?:s lIl{j 111' (" I,',. Nil' j "'ql' Will.' -liSt I' h~ II' 1'1'/1'1) lIre III . WI ,C' 4t lIlSPor/reIStrel1, I~ C' "rIllcc' tOr ' P A Cf' I, Ill' " 17 :Y fOr /) 701 cfel1et. {jl1t By: ~ {J:lh. it/lIe -1./ll'" 1;\'l11 .4!1l//./ .J.;\'I('IJ .R~ 'I.S" 'I' / k: CI{R'I'IFICATI{ OF SF.IWICI~ ANo NOW, this 22"'1 day of Mny, 2000, I. Michael V Brown, Esquirc, hereby ccrtify that on this dUy, I served n true and correct copy of the ((lrel:\oinl\ MClllorlluduln of Law In Support of Plaintiffs' Motion for Consolidatiou of Actions upon the \<ll1owing individual by plncing this document in the United States Mail. postage prepaid for Iirst dnss ddivery: Rhondn L. Davis, Esquire Elion, Wayne, Orcieo, Carlucci, Shipman & Irwin, I'.C. 125 East Third Street Wllliamsport, I'A 17701 Attorney for Defendant ~~~~- By: O:\BAR\CLUlNTS\.1:l4\OILL '{S\CHRT4.~VC A~(IlJMI';NT lindeI' Penn:;ylvania law it is a well.aeeepted praetiee 1'01' a court presented with separute actions involving thc same parlies and 11 common question of law and IllctlO order sueh aetions consolidated into 11 single aelion, since eonsolidalion will hclp to avoid a multiplicity or lawsuits: prcvent inconsistenl vcrdicts: save time and expensc Ill!' the partics; and serve judicial eeonoll1Y. See, Anchor Motor hei~ht, !rw. v. Koser. 10 D. & (' Jd 497 (I (79); Ronca \'.J}ritish & .l"oJ'(~i~n ,Murine Ins. Co" J 14 I'a. 449, 172 A. 475 (1<)34); f)zinger v. Penns.ylyania R. Co., 262 Pa. 242. 10S A, 1I7 (19111). Relative to eons(llidation of actions, Rule 213(a) of the I'ennsylvnnia Rules of Civil l'rocedUle provides as 11)lIows: In actions pending in a county which involvc a common question of1aw or r~ct, or which arisc from the same trnnsaction 01' occurrence, thc court on its own motion or on the motion of any party may ordcr a joint hearing or trial of any mailer in issuc in the actions. may order the actions consolidated, and may makc orders that avoid unnecessary cost or delay, Pa. R.Civ.p. Rule 2.13(a). The prcsent actions bcfore this court, Nos. 911-2412 and 00-26911, are ripe for consolidation in that both actions prcsent common questions of law and (llet and arise from the same trnnsaction. In PlaintiffBillys' action, No, 911.2412, and likewise, in PlaintilTSims' action, No. 00-26911, an orlll contract is ullcged between the plaintiff and Defcndant Barnes. In exchangc for performing his vurious duties as a sub-agent, Charles M. Billys was paid commissions by the Pat Andersonlnsurancc Agency on new policies written by Mr. Billys lInd the renewals of those policies us long as the. policies remained in place und the premium for the policies were paid. (Billys Complaint, No. 911-2412, '\7). **~ The amount of eommissions paid tn Mr. Ilillys by the Pat AtlClcrson Agency was liI'ty pere(~nt (50%) of premiums on lirst year business and u Ilat ten percent (10011') rate on renewal husiness. (Billys Complaint, No. 911-2412, '110). 3 2. Pluintiff Sims' Complulnl nlleges three euuses of netion: breneh of eontl'llet. uecounting and unjust emidllnenl all of which stcm Ihlm nn nllcgcd oml contract bctween PllIintllT nnd Dctcndnnt involving n~ncwnl commissions pnid on insurance contl'llcts. 3. Also bethre this Courl is the Complaint of Plainliff Chmles M. Hillys ("Plnintiff Billys") ngainst Dclcndantl3nl'l1cs, No. 98-2412, which was liIed on Dccember II. 1998. 4. With the exception of an additional allegation of misreprelientlltion/fraud, Plaintiff Billys' Complaint is idenlicalto I'laintiffSims' Complainl in thai iltoo makes claim for breach ofeontract,lIccounting nnd unjust cl1l'ichment slemming fI'om an alleged oral contract bctween I'lnintiff and Defendant involving renewal commissions paid on insurance contmels. 5, A consolidation of these two nclions will not prcjudice any substantial right ofany party to cither action and will be desimble because both actions present common questions of law and fact in that both actions, with the exception of the plaintiffs involved, allege the existence and breach of identkal oml contracts with the same Defendant; and their eonsolidutiontherefore will nvoid 1I multiplicity of suits; reduce unnecessary costs and prevent the possibility of inconsistent orders. 6, In accordance with Local Rule 206.2, counsellhr Plainliffs Billys and Sims has conferred with counsel li)l' Detcndant Barnes, and has bcen notified that the Defendant in both mutters, Donald E. Barnes will not concur in the consolidation of these cases. 2