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HomeMy WebLinkAbout03-0850VIP HAIR STUDIO AND DAY SPA, INC., Plaintiff, V. JUSTIN M. KELLY, Defendant. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - EQUITY NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff· You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE· IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 Liberty Avenue Carlisle, PA 17013 800-990-9108 VIP HAIR STUDIO AND DAY SPA, INC., Plaintiff, V. JUSTIN M. KELLY, Defendant. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - EQUITY forth above. 4. COMPLAINT AND NOW, comes Plaintiff, by its undersigned counsel of record, and respectfully brings this action at law, setting forth in support thereof as follows: 1. Plaintiff herein is VIP Hair Studio and Day Spa, Inc., a Pennsylvania corporation with a principal place of business at 242 York Road, Carlisle, Cumberland County, Pennsylvania. 2. Defendant, Justin M. Kelly, is an adult individual residing at 861 West North Street, Carlisle, Cumberland County, Pennsylvania. Plaintiff is a beauty salon and day spa facility doing business at the address set Defendant is and was, at all times pertinent hereto, a beautician licensed by the Commonwealth of Pennsylvania, Department of State. 5. On or about July 9, 2001, Defendant agreed to work for Plaintiff as a licensed beautician. 6. At the time prior, Plaintiff was informed that he would have to sign an employment agreement as a condition of his employment with VIP. Defendant was informed that he would be agreeing to terms and conditions related to employee training at the expense of Plaintiff and subject to reimbursement should he leave. Plaintiff also informed Defendant that he would have to sign a confidentiality agreement not to reveal customer lists to other employers as a condition to receiving a "book" of clientele from Plaintiff. 7. Plaintiff also stated that Defendant would have to sign a noncompetition agreement, barring Defendant from working for another similar entity within fifteen (15) miles of Plaintiff's job site. 8. Pursuant to Defendant's above-said oral agreement with Plaintiff, Defendant signed a certain written employment agreement, a copy of which is attached hereto, is labeled Exhibit A and is incorporated by reference herein. 9. The employment agreement erroneously states the employer as "VIP Hair and Tanning Salon Corporation", which was a mutual mistake of both parties. Both parties specifically understood that the employer was Plaintiff. 10. On or about February 4, 2003, Defendant left the employ of Plaintiff and proceeded to work for a competing employer known by the trade name "Sassy Cuts". 11. Sassy Cuts has a principal place of business at 767 East High Street, Carlisle Pennsylvania, where Defendant has been employed since on or about February 10, 2003. 12. The aforesaid business premises of Sassy Cuts is located within 0.4 miles of Plaintiff's facility, where Defendant had worked. 13. Defendant was previously notified that the employment agreement is considered by Plaintiff to be in full force and effect, and that should he violate the terms and conditions of the proceeding, he would be subject to legal suit. 14. Defendant, after warning, has continued to be in the employ of Sassy Cuts. 15. Defendant has actively solicited the "book" of business which was assigned to him during his employ at VIP. 2 16. Defendant had actively solicited a wedding party, which had previously been under contract to Plaintiff, forcing Plaintiff to give a refund to the party in the amount of $557.75, which otherwise would have been earned. 17. Plaintiff believes and therefore avers that Defendant is actively contacting other members of his "book" of business from Plaintiff and soliciting those persons to come to Sassy Cuts. Plaintiff suspects that it has lost approximately $1,500.00 in net profits. 18. In addition to monetary losses, Plaintiff will suffer a loss of future business and revenues in an amount which it cannot currently assess. 19. Under Paragraph 9 of the agreement, the parties agree that Plaintiff may seek equitable relief enjoining Defendant from "any competing activity as set forth in Paragraph 7". 20. Plaintiff will suffer irreparable harm unless equitable injunctive relief is granted. 21. Under Paragraph 9, Plaintiff is authorized to recover reasonable fees enforcing the terms of the agreement, including reasonable attomey's fees. WHEREFORE, Plaintiff respectfully requests the following: A. Equitable relief enjoining Plaintiff from divulging the names of any clientele, or soliciting said clientele from the "book" of business he was assigned by Plaintiff; B. Compel Defendant to surrender any notes or memoranda dealing either with the book of business or which are memoranda dealing with clientele from said book of business; C. Granting Plaintiff damages for all past and future lost profits; D. Enjoining Defendant from continuing to work for Sassy Cuts or any other similar entity within 15 miles of Plaintiff' s establishment for a period of one (1) year; E. Reasonable legal expenses; together with interest and costs of suit, and such other relief as this Honorable Court finds reasonable and just. Respectfully, Kenneth Al WisS, Esquire Attorney I.D. No. 16142 126 Locust Street P. O. Box 11489 Harrisburg, PA 17108-1489 (717) 238-3838 Attorney for Plaintiff 4 VERIFICATION Upon my personal knowledge or information and belief, I hereby verify that the facts averred in the foregoing Complaint are true and correct to the best of my knowledge, information, and belief. I understand that false statements or averments therein made will subject me to the criminal penalties of 18Pa. C.S. § 4904 relating to unsworn falsification to authorities. F'~OH F'R× NO. : -/'179017689 Feb. O~ 288;3:1.0:07R~1 P~ : ~LITL_ I FF'_CAP I TAL_FORD ! EMPLOYMENT AGREE THIS AGILEEMF, NT, dated this ~_j.~day e! b~tween Vfl.P. H~ i.~a~g !sion Co~oration (h WHEREAS, l~mployer desires to ~Aploy ~_m_', professional hair stylist, and Employee desires Io ent ~reiaafler c~lled "t~mployer") ~reiaafter ~alled "Employee") lo),cc *u render sen, tees as a die employ of the Erflployei' on an exclusive basis; NOW THI~P, EFOP~, in c~nsidcration of the ~tutual promir~s contained herein and intending to be legally bound hereby, the follows: I. EmoIoymcnt. The Employer he[cby e Employee hereby- a¢ccpts employment upon the se~ fo~, 2. :[.e. II!!. 'Ibis Emplo, ymcnt A~eement i begttn on O~e ~ day et' ~ki , mdcirmitely he:eafter until terr~nat¢~ by either partl. and recognize that Employee is being cmployed on, 3_ ~. Employer agrees to p~ rendered under this A~eemen! at a ~ate of $ .. changed fi-om time to time by Employer gi~ing t~o agr~ to keep accurate reoord$ of tittle and to have promptly submitted for payment. Compensation wi basis. The payment date 0£ compensation may be ¢ two wc¢~ ad~mced notice, ~ovided that La no eve ~c~ms a~d tir~es of pa~.,%~nent so as to be ~n violation. 4. Duties. The ~mployee shall devote h attention, and energies to the business of the Emplo term of ~$ Agreement, bc engaged in any other pr~ nature without the prior written consent of F~mploy~ that the primary duty' of the Bmployee shall bc tutti Neverthel~s, Employee shall perform such additio: nploy$ the Employee. and ~ is and conditions her~iaaficr al!~reed to begin or to have ~_~ ~ ~. and will c..~niinue :.- Thc parties expressly agree n "at will" basis. y Employee for all services per hour, This rate may be v~¢ks noli~, l~rnploy~ ill me c~ds ~d ~lips l ~ ~d ~t on 8 we~y t~d ~ ~e ~pl~er on tt shall Employ~ m~i~ ~c ~ ~ ~ fede~ law. or her professional time, ~er and shall nat, during thc r~ssio~al activity of similar It is understood and als'ced end sb'l~ng hair, dutlos as the cleaning of FROM : ~UT; IFF_'CAP]TALFORD! FAX 1'40. : ?17_q0176~9 Feb. 06 21;~J 10:0QAM P:~ e. rca end shall perform such addkional fi a0ttons ss may be, from time his~.cr work .......... "-d Pr ~d~ M~u~, ~ ' e ~ l~r S ~Oi~ ~s . w~ch' ,s' ~o~o~d ~rcia ~ z~ence m~ . _. _ . _ li~s~es ~d ~provCs. ~ ~ai wi~ ~ 1~ ~ (2) y.~ ~ ~v~ b~ ~o pricings sgei~t ~pl~ bd~rc ~Y ticking ~ r ~!~o~ ~up ~st may reset ~ s di~atio~ of, ~sm~don of, or lieu pcrforra ~e assigned duties. 6. Ernplove~c Training. Employcragrees ion of licens, or privileges to :hat it will pay for Employee thriving on the t~'-ms a~d conditions set forth here~ (a) ~c proposed cou~ of ~ai~n~ m~ be dcte~cd by Employer to ~ appropriate ~d ~mplo~ee's ebili~ to do hisser ~) ~e Empl~ee must pass the c~ M~ e "B" avenge or (0 5~ould the ~m~lo~ee ~se. ~ployee ~lt owe ~mpl~er Employee was reimbursed. (d) Thc decision on whether or ne entir,.ly within u~¢ discretion of' Employer. 7, ~. Employee recog~ze clientele which ere Ibc valuable propertff of the Em ~nployee agrees not to divulge to arty third party olieztt lists, nor will Aa/she Ir'tempt to contact arty to reimburse Employee is that Emplo?r has lists of )loyer. L,t this regard, ormation on erni ient of Employer for the purpose of soliciting ed doing hair stylhlg budnes ~d rcht~ ~s, excep~ as n~css~ for Emplo~e to fu~ll hi.er duties ~r ~ts A~e~ent, Excep~ ~ .off. sc cxcmp~d mtd pro~d for in ~is a~t, ~e ~ ed ~o~s~n e~ut eli ~?entc~ ~dled by Employer or Em~oy~e d~ ~ fi~ of ~ployee s ~plo~ent shall ~ considered the pr~p~ of~ployer FROM : SLrTLIFF=CAPITALFORD! FAX NO. : 7179017689 F~b. 06 2~3 10:08APt P& ~. _N~-c~r~diio~- Durin$ ~he period oft ~ployee ~ven~, pm~, ~d ~e~ to Employ, Employer's en~K ~to ~s A~ecment wi~ ~is Agreement, and for a · cement for ~' rc~on, ~l~ ss co~id~ta~on for cffi~x, employee, ditcotor, or stock boldzr or' ~' of flfle~ (t~) ~le~ ~om ~ ~en~ job ~te of 9. ~o~a~On ofA~eem~t. ~ the evem ~':~ Empl~ee ~olat~ ~ of ~qvilablc rchefbefor¢ a~y court of Jaw, i~cludivlL bu Employee from any competin8 nctlvity ~ ~er a~c~ ~ ~s re~d ~ Employee ~II reasonable ~s~, includ~ reachable a~om~'s foe 10, T~inati~. U~n t~in~fio~ ~mpl. prope~ ~elo~ m ~ Employs, incbdi~ client ~ndc, ,~k in ~ade, ~d ~ like. The p~ ~mployer not ~ re~e~ nr ~e r~m~d use ~d we~ ~ ~, ~e ~ployer may deduct ~e ~o~ limited ~o, e~joi~in8 Pangraph 7. Thc panics ,onsible for Bmployer's in ~forcin8 thc t~w.s of this ~ye~ shall surrender iists, ~iforrr,~, tools of the h~t, should pt~ of co~dition ~on~ rea~bl~ r~sonablo s~ fox ~uch loss or damage from the Employee's final pay. Should s' ~ch dedu.'tion ~t be sufficient to pay for the loss or dam~e, ~mployer exp:¢ssly r~serves the rit~l to brin~ such l~gal proceedings at law or ecl~ity as may be allowa~le to cnfor~ the Employer's claim. l 1. ~xclus}vi _ty of A_a' .~n. ent, This cent~ complete affreemenc ~ ~c ~ploycr ~d Emi mtalcm~s, ~d~em~, or ~re~n~tions have · c Employee, ~ ~ m~ifl~ons h~cof ~! ~ss ~ ~ ~d si~ed by it or its auto'zed 12. ~. This asreemcnt shall benefit of thc pa~cs hcrcto and ~eir respective h~ and assigns, and shall be go--cd by tnd eon~tru~ of ~he Commonwealth o~ Pennsylvania. con~titutc~ thc sole nncl tOyee. No verl~l or other made ~ or rehed upon by )ind~g ~on by ~C ~ployer mcsenta~ve. be binding upon ai,.d for the ~, a~.inistrators, successors, !in accc~'dance wi~ the hws ~t FROM : SU,T, LIF~,,~CAPiTAL_FORD FA~< NO. : ?17~017689 Feb. 13. ~=.~.li~i._~. lfany l~arl of ~ a~eme ~t is deemed ~fa~. null ~d void. P~s d~med unfn~ should be adju: :ed ~d cnforceab~. 14. ~imt ~ati~. Upon l~quid~on o~ ~r~o~ ~ploy~e's ~a~on ~~ ~plo~ ~l ~l~t ~fo~adon ~e Empl~, IN WITNESS WHEREOF. ~e parties hereto', and seals the day and year first written above imendi Date: oat: 10: 09AM ~ iobc leBally homed hereby. PS TRANSACTION REPORT FEB-06-03 FOR: Br~derm~n,Em~.Wise,Ems. 717 238 3816 09:19 AM RECEIVE DATE START SENDER PAGES TIME NOTE FEB-06 09:15 AM 7179017689 5 3~20~ OK VIP HAIR STUDIO AND DAY SPA, INC., Plaintiff, Vo JUSTIN M. KELLY, Defendant. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION- EQUITY NO. t' -O PETITION FOR LEAVE TO CONDUCT PROMPT DISCOVERY AND NOW, comes Plaintiff, by its undersigned counsel, and respectfully moves this Court, pursuant to Pa. R. C. P. Rule 4007.2(b) for leave of this Court to conduct prompt discovery and sets forth in support thereof as follows: 1. The Petitioner herein is Plaintiff. 2. The Respondent herein is Defendant. 3. Plaintiff is a hair styling studio and day spa doing business in suburban Carlisle, Cumberland County, Pennsylvania. Defendant is a licensed beautician who until recently was in the employ of Plaintiff. 5. Plaintiff is seeking monetary and injunctive relief for What it claims is Defendant's violation of a certain employment agreement containing standard confidentiality clauses and restrictive covenant against competition within the geographic locale (fourteen (14) miles from Plaintiff's establishment). 6. Plaintiff is claiming the following: A. When Defendant was hired, he signed an employment agreement for the confidentiality of Plaintiff's clientele and restricting him from competing within fifteen (15) miles of Plaintiff's establishment for a period of two (2) years; When Defendant was hired, he was given a list of Plaintiff's clientele to Bo provide services; C. Defendant left the employ of Plaintiff on or about February 4, 2003, and, on or about February 10, 2003, has taken up employment at an establishment known as Sassy Cuts, an establishment within one-half (1/2) mile of Plaintiff's establishment; D. Defendant has been contacting Plaintiff's clientele on the list given him when he began work with Plaintiff; E. Defendant has also contacted booked clients of Plaintiff and, in one instance, has taken the business of a booked wedding party away from Plaintiff, forcing Plaintiff to issue a refund of $557.75; F. Defendant has also allowed his likeness and name to be used in newspaper advertisements run by Sassy Cuts. 7. Plaintiff seeks monetary and injunctive relief against what (s)he claims is conduct in violation of the employment agreement. 8. Plaintiff will be seeking a preliminary injunction and desires to gain information as soon as possible rather than pursuing her claim. 9. Plaintiff desires to take the deposition of Defendant for a deposition to be held on March 11, 2003, which is within thirty (30) days of the filing and service of the Complaint. 10. Plaintiff desires to promptly discover information, relative to bringing a motion for preliminary injunction and more particularly in areas including the following: mo B. C. D. A list of clientele contacted by Defendant; The value of the services provided to these clients; Contacts or attempts to contact other clientele of VIP; Any agreements entered into with others pertaining to bringing in persons on the list of contacts given by Plaintiff to Defendant, 'or any ot]her customer contacts leamed about as a result of Defendant's employment with Plaintiff. 11. For the reasons set forth above, Plaintiff has good and sufficient reason for being allowed to conduct prompt discovery within the thirty (30) day period from service of the Complaint. 12. Allowing such will not work any prejudice to Defendant. WHEREFORE, Plaintiff respectfully requests an Order of this Court giving it leave to conduct the deposition of Defendant within thirty (30) days of service of the Complaint on Defendant. Respectfully, Kenneth A. Wfse, Esquire Attorney I.D. No. 16142 126 Locust Street P. O. Box 11489 Harrisburg, PA 17108-1489 (717) 238-3838 Attorney for Plaintiff VERIFICATION Upon my personal knowledge or information and belie£, I hereby verify that the facts averred in the foregoing Petition are tree and correct to the best of my knowledge, information, and belief. I understand that false statements or averments therein made will subject me to the criminal penalties of 18Pa. C.S. § 4904 relating to unswom falsification to authorities. VIP HAIR STUDIO AND DAY SPA, INC., · Plaintiff, . Mo JUSTIN M. KELLY, Defendant. IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA · CIVIL ACTION - EQUITY · NO. t95; -o°-c'o FEB Z ~ 2~ ORDER AND NOW to wit this ..2'~" day of ~',r_.~rua~ . '~ " -. _00.~. in consideration of Plaintift's Petition for Leave to Conduct Prompt Discovery, it is hereby ORDERED that Plaintiff is hereby given leave to conduct discovery in the form of the deposi:tion of Defendant within thirty (30) days of service of process, or no less than seven (7) days from service of a Notice of Deposition. BY THE COURT: · SHERIFF'S RETURN - REGULAR CASE NO: 2003-00850 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND VIP HAIR STUDIO AND DAY SPA VS KELLY JUSTIN M CPL. TIMOTHY REITZ , Sheriff or Deputy Sheriff of Cumberland County, Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - EQUITY was served upon KELLY JUSTIN M the DEFENDANT , at SASSY CUTS CARLISLE, PA 17013 SHRYLE M DIEHL, OWNER at 1717:00 HOURS, on the 4th day of March 767 EAST HIGH STREET by handing to ADULT IN CHARGE a true and attested copy of COMPLAINT , 2003 EQUITY together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing Service Affidavit Surcharge 18 00 3 45 00 10 00 00 31 45 Sworn and Subscribed to before me this /0 ~ day of ~ ~ A.D. thonotary ' ' So Answers: R. Thomas Kline 03/05/2003 KENNETH WISE By: Dep~ S<heriff/ Vo JUSTIN M. KELLY, VIP HAIR STUDIO AND DAY SPA, INC., · IN THE COURT OF COMMON PLEAS OF Plaintiff i CUMBERLAND COUNTY, PENNSYLVANIA · CIVIL ACTION - EQUITY · NO. 03-850 EQUITY TERM Defendant · TO: NOTICE TO PLEAD VIP Hair Studio and Day Spa, Inc. C/o Kenneth A. Wise 126 Locust Street P.O. Box 11480 Harrisburg, PA 17108-1489 You are hereby notified to file a written response to the enclosed Prel Objections of Defendant Pursuant to Pa. R.C.P. No. 1028(a)(4) within tw service hereof or a judgment may be entered against you. Respectfully submitted, ROMINGER & BAYL iminary enty (20) days from Date: April 8, 2003 Karl E. Rominger, Esquire 155 South Hanover Street Carlisle, PA 17013 ~ (717) 241-6070 ~ Supreme Court ID # 8192~ Attorney for Defendant ~ VIP HAIR STUDIO AND DAY SPA, INC., · Vo JUSTIN M. KELLY, Defendant IN THE COURT OF COMMON PLEAS OF Plaintiff ' CUMBERLAND COUNTY, iPENNSYLVANiA · CIVIL ACTION - EQUITY · NO. 03-850 EQUITY TERM: PRELIMINARY OBJECTIONS OF DEFENDANT[ PURSUANT TO Pa. R.C.P. No. 1028(a)(4) AND NOW, comes Defendant, Justin M. Kelly, by and through his c6unsel, Karl E. Rominger, Esquire of the Law Firm of Rominger & Bayley and respectfully brings the following Preliminary Objections to Plaintiff's Complaint: 1. On or about February 26, 2003, Plaintiff VIP Hair Studio and Day ~Pa, Inc., a Pennsylvania corporation initiated suit against Defendant. 2. The suit is brought in equity to both enforce restrictive covenants Which Plaintiff alleges restrain Defendant from his present employment, and for damages for hctions of Defendant which are alleged to be a breach of those same restrictive covenanti. 3. The complaint alleges that Defendant began work for Plaintiff on o~ about July 9, 2001. 4. The complaint references an employment agreement as the source cfi the covenants, which is attached and incorporated to the complaint, and is dated July 17, 2001. 5. The contract purports to be between Defendant and Pennsylvania c.6rporation V. LP. Hair and Tanning Salon Corporation, which at the time of this action, and at the time of July 17, 2001, was and is a valid Pennsylvania Corporation separate and different from VIP Hair Studio and Day Spa, Inc., the named Plaintiff. 6. It is alleged in the complaint that there was an oral agreement betWeen Plaintiff and Defendant that he would sign said contract. 7. The complaint also alleges that "employment agreement erroneously states the employer as "V.I.P. Hair and Tanning Salon Corporation", which was a muttlal mistake of both parties." (See paragraph 9) 8. In Plaintiff's complaint it is alleged that the employment relationship began on or about July 9th, but that no written Noncompete or other employment covenant was entered into until July 17, 2001. 9. This fact alone renders the restrictive covenants unenforceable, as employment began before the agreement was signed, and Defendant could not freely, intelligentl5 and knowingly enter into said restrictive covenants after employment had already began. 10. Further, Plaintiff alleges in paragraphs 10 thru 14 of the complaint that Defendant has violated the agreement by nature of his employment with another hair studio, Sassy Cuts, which is within fifteen (15) miles of Plaintiff. 11. However, paragraph 8 of the alleged employment agreement says !n part that, "employee will not engage in any business activity of cutting or styling hair fo! profit for any similar or associated business, either as a member of a partnership or as anioffieer, an employee, director, or stock holder of any corporate entity, within a radius iof fifteen (15) miles from the current job site of the employer, or any other stores employer may open or maintain". (Emphasis added) 12. The language is clear, and assuming arguendo that it would apply, hese restrictions do not apply to Defendant if he works as an employee of a sole proprietorship. It only barrs him from engaging in similar activity as a member of a partnership, or as an officer, employee, director, or stock holder of any corporate entity. 13. No where in the complaint is it alleged that Sassy Cuts is a partnership, or corporate entity which would allow for the invocation of paragraph 8, and thus the claim fails. 14. Further, since Plaintiff is not the entity named in the contract with Defendant, and given the fact that the restrictive covenants in the employment contract are not enforceable it assigned, absent a assignability clause, Plaintiff has no ability to enforce said 'covenants, assuming arguendo they could have been enforced or could be enforced by th~ entity named in said contract. WHEREFORE, for the foregoing reasons and pursuant to Rule 1028(4) of the Pennsylvania Rules of Civil Procedure, Defendant demurs to the claims of Plfiintiff and respectfully asks that this Court dismiss the complaint for failure to state a cadse of action upon which relief can be granted. Respectfully submitted, ROMINGER & BAYLI~Y Date: April 8, 2003 Karl E. Rominger, Esquir~ 155 South Hanover Streeti Carlisle, PA 17013 (717) 241-6070 Supreme Court ID # 81924 Attorney for Defendant VIP HAIR STUDIO AND DAY SPA, INC., · JUSTIN M. KELLY, Defendant IN THE COURT OF COMMON PLEAS OF Plaintiff ' CUMBERLAND COUNTY, PENNSYLVANIA · CIVIL ACTION - EQUITY · NO. 03-850 EQUITY TERM CERTIFICATE OF SERVICE I, Karl E. Rominger, Esquire, attorney for Defendant, do hereby certify that I this day served a copy of the Preliminary Objections of Defendant upon the following by depositing same in the United States Mail, first class postage prepaid, at Carlisle, Pennsylvania, addressed as follows: Kenneth A. Wise, Esquire 126 Locust Street P.O. Box 11489 Harrisburg, PA 17108-1489 Dated: April 8, 2003 Karl E. Rominger, Esqui/e Attorney for Defendant Vo JUSTIN M. KELLY, VIP HAIR STUDIO AND DAY SPA, INC., · IN THE COURT OF COMMON PLEAS OF Plaintiff · CUMBERLAND COUNTY, PENNSYLVANIA · CIVIL ACTION - EQUITY · NO. 03-850 EQUITY TERM Defendant · PRAECIPE TO ENTER APPEARANCE TO THE PROTHONOTARY: Please enter my appearance on behalf of the Defendant, Justin M. Kelly, in the above captioned action. Respectfully submitted, ROMINGER & BAYLEY Date: April 8, 2003 Karl E. Rominger, Esquire 155 South Hanover Stree~ Carlisle, PA 17013 (717) 241-6070 Supreme Court ID # 8192~4 Attorney for Defendant cc. Kenneth A. Wise, Esquire VIP HAIR STUDIO AND DAY SPA, INC., · Plaintiff, · JUSTIN M. KELLY, · Defendant. · IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION'- EQUITY NO. 03-850 NOTICE YOU HAVE BEEN SUED IN COURT. If you wish. to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. CUMBERLAND COUNTY BAR ASSOCIATION 2 Liberty Avenue Carlisle, PA 17013 800-990-91~)8 VIP HAIR STUDIO AND DAY SPA, INC., Plaintiff, V· JUSTIN M. KELLY, Defendant. · IN THE COURT OF COMMON PLEAS · CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - EQUITY NO. 03-850 AMENDED COMPLAINT AND NOW, comes Plaintiff, by its undersigned counsel of record, and respectfully brings this action at law, setting forth in support thereof as follows: 1. Plaintiff herein is VIP Hair Studio and Day Spa, Inc., a Pennsylvania corporation with a principal place of business at 242 York Road, Carlisle, Cumberland County, Pennsylvania. 2. Defendant, Justin M. Kelly, is an adult individual residing at 861 West North Street, Carlisle, Cumberland County, Pennsylvania. 3. Plaintiff is a beauty salon and day spa facility doing business at the address set forth above· 4. Defendant is and was, at all times pertinent hereto, a beautician licensed by the Commonwealth of Pennsylvania, Department of State. 5. On or about July 9, 2001, Defendant agreed to work for Plaintiff as a licensed beautician. 6. At the time prior, Plaintiff was informed that he would have to sign an Employment Agreement as a condition of his employment with VIP. Defendant was informed that he would be agreeing to terms and conditions related to employee training at the expense of Plaintiff and subject to reimbursement should he leave. Plaintiff also informed Defendant that he would have to sign a Confidentiality Agreement not to reveal customer lists to other employers as a condition to receiving a "book" of clientele from Plaintiff. 7. Plaintiff also stated that Defendant would have to sign a Noncompetition Agreement, barring Defendant from working for another similar entity within fifteen (15) miles of Plaintiff' s j ob site. 8. Pursuant to Defendant's above-said oral agreement with Plaintiff, Defendant signed a certain written Employment Agreement, a copy of which is attached hereto, is labeled Exhibit A and is incorporated by reference herein. 9. The Employment Agreement erroneously states the employer as "VIP Hair and Tanning Salon Corporation", which was a mutual mistake of both parties. Both parties specifically understood that the employer was Plaintiff. 10. On or about February 4, 2003, Defendant left the employ of Plaintiff and proceeded to work for a competing employer known by the trade name "Sassy Cuts". 11. Sassy Cuts has a principal place of business at 767 East High Street, Carlisle Pennsylvania, where Defendant has been employed since on or about February 10, 2003. 12. The aforesaid business premises of Sassy Cuts is located within 0.4 miles of Plaintiff's facility, where Defendant had worked. 13. Defendant was previously notified that the Employment Agreement is considered by Plaintiff to be in full force and effect, and that should he violate the terms and conditions of the proceeding, he would be subject to legal suit. 14. Defendant understood that the Employment Agreement and in particular Paragraph 8 to mean that Defendant's working for Sassy Cuts would be a violation of the Agreement. 15. 16. Defendant, after warning, has continued to be in the employ of Sassy Cuts. Defendant has actively solicited the "book" of business which was assigned to him during his employ at VIP. 17. Defendant had actively solicited a wedding party, which had previously been under contract to Plaintiff, forcing Plaintiff to give a refund to the party in the amount of $557.75, which otherwise would have been eamed. 18. Plaintiff believes and therefore avers that Defendant is actively contacting other members of his "book" of business from Plaintiff and soliciting those persons to come to Sassy Cuts. Plaintiff suspects that it has lost approximately $1,500.00 in net profits. 19. In addition to monetary losses, Plaintiff will suffer a loss of future business and revenues in an amount which it cannot currently assess. 20. Under Paragraph 9 of the Agreement, the parties agree that Plaintiff may seek equitable relief enjoining Defendant from violating the Confidentiality Agreement and Non- compete Agreements. 21. Under Paragraph 9 of the Agreement, Plaintiff is authorized to recover reasonable fees enforcing the terms of the Agreement, including reasonable attorney's fees. COUNT I 22. Paragraphs 1-21 above are incorporated by reference herein. 23. Plaintiff will suffer irreparable harm unless equitable injunctive relief is granted. For the reasons set forth above, Plaintiff is entitled to injunctive relief. WHEREFORE, Plaintiff respectfully requests the following: A. Equitable relief enjoining Plaintiff from divulging the names of any clientele, or soliciting said clientele from the "book" of business he was assigned by Plaintiff; B. Compel Defendant to surrender any notes or memoranda dealing either with the book of business or which are memoranda dealing with clientele from said book of business; C. Granting Plaintiff damages for all past and future lost profits; D. Enjoining Defendant from continuing to work for Sassy Cuts or any other similar entity within 15 miles of Plaintiff's establishment for a period of one (1) year; E. Reasonable legal expenses; together with interest and costs of suit, and such other relief as this Honorable Court finds reasonable and just. 24. COUNT II Paragraphs 1-23 above are incorporated by reference herein. 4 25. Attached hereto as Exhibit B is a list of education classes provided by Plaintiff to Defendant and the cost to VIP of paying for Defendant's education and training within two years of Defendant's separation from employment. The total amount of these costs to VIP on behalf of Defendant is $1,100.00. 26. Paragraph 6.C. of the Employment Agreement (Exhibit A) reads that, "Should the Employee be separated from employment w. ith Employer, for any reason, within two (2) years following the completion of the course, Employee will owe Employer for the cost of that course for which Employee was reimbursed. 27. Defendant has not paid any of the costs thereof. WHEREFORE, Plaintiff respectfully requests judgment in this count against Defendant in the amount of $1,100.00 together with interest and costs of suit, including reasonable attorney's fees. Respectfully, ./ / Kenneth A. Wise, Esquire Attorney I.D. No. 16142 126 Locust Street P. O. Box 11489 Harrisburg, PA 17108-1489 (717) 238-3838 Attorney for Plaintiff 'd ! EMPLOYMENT AGRE ~E~ENT bem'een E.I.P. Hak &/a~g Salon Co~oration (~re~afl~ c~led "EmployS") ~TNE~TH; J - - ,~ "Employee") ~E~AS, Employer desires to employ Em iloyee to rend~ se~ces as a professional hah sWlist ~d Employee des~e$ ~o en :r the employ of~¢ Employer on ~ exclusive basis; , NOW THEREFOr, M consideration of ~e Mutual pro~ses contained here~ ~d intending to be legally bound hereby, the?~ies hereto a~ee as follows: 1. Em~los~e,t. The Employer hereby e~ploys ~e Em lo ee ~ Employee hereby accepts emplo~cnt unon the t-~ --~ ........ P ~Y ,. ~ ~e set fo~. r ~,,~a anu conoiRo~s nerem~ter . Te~. ~is EmplO~ent A~eementi a ced ' ~egm~ on ~e f7- day of ~ ~'~ ~l ~t~., to begin or to have indefinitely herea~r,,-,;~ ,~ ..c~~o x , ~d will con~ue anu reco~lze th ~m~,,~- :- ~:-- , ~ . aaag p~c~ expressly a ee ~-- at ~ e,~y~c ~ ocmg employed ~ "at will" basis ~ 3. ~. Employer agrees to P4Y Employee for all sen'ices rendered under ~s A~eemenl at a rate ors ? per ch~ged fiom time to time by Employer givi ho~. TNs rate may be , a~ees ~eeks notice. Employee lo keep acetate records of time ~d to have ~11 t~e c~ds ~d slips promptly subdued for pa~ent. Compensation wi~ be p~d out on a wee~y basis. ~e payment date of compensation may be c !~ged by ~e Employer on two weeks adv~ced no,ice, prodded ~at N no eve~,t shall Employer modi~, ~e ~enns ~d times ofpa>~ent so as to be m ~olation ~fstate or fedeal law. 4. Putie__._~s. The Employee shall devote h attention, and energies to the business of the Emplc term of this Agreement, be engaged in any other nature wiflmut the prior wrinen consent of Employc that the primary duty of the Employee shall be cut-Ii Nevertheless, Employee shall perform such additiol or her professional time, ~,er and shall not, during the fessional activity of similar i. It is understood and agreed tg and styling hair. al duties as the cleaning of EXHIBIT A his/t~er work area ~d shall peffo,ra ,such additional ~ ~¢tions as may be, from time to t:me, prescribed by the Employer s Policies and PrI ~cedure M~ual, as art, ended. Employee expressly agrees to abide by t.h~.rule$ and resulations set forth from ttme to time in tile aforementioned Policie~ ~d Procedures M~mual, which is incorporated herein by reference thereto. 5. Represenlations of Emplo_~ee: In cons: entering into this Agreement, Employee represents · fully qualified to perform the assigned duties, that h~ licensures and approvals, and that within the last tw~ proceedings against Employee before any licensing, result in a discontinuation of, restriction of, or limit~ perform the assigned duties. ~ &ration for Employer Id wwrants that he/she is /she has the requisite (2) years there have been no ,r regulatory' group that may ion of license or privileges to 6. Emplo',ee _Training Employer agreesithat it will pay for Employee training on the terms ~md conditions set forth herei4 (a) The proposed course of trainin~ must be determined by Employer ? be appropriate and the type oft{aining that would enhance the Employee s ~bility to do his/her assigmed jolt. .... (b) The Employee must pass the c~ttrse with a B average or equivalent. ¢ ( ) Should the Employee be separ~tted from employment with Employer, for an), reason, within two years ~ollowing the completion of the course, Employee will owe Employer for th~ cost of that course for wkich Employee was reimbursed. (d) The decision on whether or no} to reimburse Employee is entirely within the discretion of Employer. 'L ~. Employee recognize ~ that Employer has lists of clientele which are the valuable property of the Em ~loyer. In thi, regard, Employee agrees not to divulge to any third party a ~y inforn~afion concerning client lists, nor will he/she attempt to contact any client of Employer for the purpose of soliciting and doing hair styling busines: and related services, except as necessary, lbr Employee to fulfill his/her duties und r this o,thcrwlse .e. xcmpted mtd provided for in thi ...... -~ .. Agreement. Except as ~ a/~cu tqt t ' ~,~ouJ all c?ntele hm,dled by Employer or gm,,lo~, ~e- .4'..t-l'l-e-n.,arne..s and '?ormation r.:mpmyee s enmlovme,,, .4...u ~. ...... v .ry- uua.,ng trle lime oI ,- ,, ,, o,,,~, uc consmerec~ the prgperty of Employer. 8. .N_on~.cgmp. etition. During the period of period of' two (2) years after the termination of tiffs A Employee covenants, promises, and agrees to Employ Employer's entering into this Agreement with Emplo engage in any business activity of cutting or styling Of sLm. ilax or associated business, eithc~ as a member of his Agreement, and for a reement for ~)' reason, Ir that. as consideration for .'e, Employee will not 'hair for profit for any parmership, or as an officer, employee, director, or stock },older ol'any cot ~orate entity, within a radius of fifteen (15) miles fi.om the current.lob site of the E: r~ployer, or any other store or salon which Employer may open or tnainta~. ~ 9. _Violation_ of A~¢em¢..!,.t. In the event tie E:mployee violates any of the terms of the Agreement, the partics a~ce that Em fioyer may seek legal or equitable relief before any court of law, i/,t'luding, bt not limited to, enjoining Employee from any competing activity as aet forth in'Paragraph 7. The parties further agree in this regard that Employee will be res ~onsib}e for Employer's reasonable costs, including reasonable attorney's fees m enforcing the terms of this Agreement. 10. ~. Upon termination, Lmpl property belonging to the Employer, including client trade, stock in trade, and the like. The parties agree Employer not be returned, or be returned in damage,~ use and wear and tear, the Employer may deduct thel ~yee shall surrender all lists, u:~ifom~5, tools of the ',hat, should p~op.-.rty of the condition beyond reasonable reasonable sum for ~uch loss or damage from the Employee's final pay. Should sich dedt: :tion not be s,:fficient to pa), for the loss or damage, Employer expressly r~serves the fight to bring ~uch legal proceedings at law or equit), as ma3,' be allowal~le to enforce the Em?lo2, er's claim. ; - 11. .Exclusivity 9fA_meemen_~ Tkis contract constitutes the sole ~d complete agreement between the Employer and EmI~love¢. No verbal er other statements, inducements, or representations have been ~nade to or relied upon by the Employee, and no modification~ hereof shall be binding upon by the Employer unless in writing and signed by it or its authorized r!p~¢sentative. I2. ~. This agreement shall be binding upo, a~.d for the benefit of the parties hereto and their respective hei~;~, administrators, successors, and a,signs, and shall be governed by and construer in accordance with the laws of the Commonwealth of Pem~$ylvania. 13. Severability. If any part oft, his agreem4nt is deemed unfair, excessive, or unenforctable, it shall not c,~use any other part of this agreement to be null and void. Parts deemed unfai, r shoul,"l be adju~ted by the court to be fair and enforceable. 14., .~lient Infc. rmation. Upon liquidation o~'the corporation, or upon the Employee s te'~.nafion of kis/her employment, all client information (phone numbers, addresses, names, and technical informatim~) shall remain with the Employer. IN WITNESS WHEREOF, the parties hereto', and seals the da)' and year first written above intendi: Date: lave i:ereunder set thetr han..Is ~g to bt legally bound hereb:.'. Ernpllff) ee - ' F_Aucation Classes pro'vSdcd by VIP Hair Studio and Day S Color Classes: ..qeptember 18,2001 October 29.9_002 November 6, 2002 November 21. 2002 January 28, 2002 January 6. 2003 Justin Cost 80.00 80.00 80.00 80.00 80.00 200.00 semi- prix'me cl;tss Perm Cia.ss & Product Knowledge $200.00 Comtbrt Zone Class $200.00 Raylon Camp ViP paid $100.00 toward Bulmtce. L/rand Total $1,100.00' )a, lnc. EXHIBIT B VERIFICATION Upon my personal knowledge or information and belief, I hereby verify that the facts averred in the foregoing Amended Complaint are true and correct to the best of my knowledge, information, and belief. I understand that false statements or averments therein made will subject me to the criminal penalties of 18Pa. C.S. § 4904 relating to unsworn falsification to authorities. Date: 7//f//~ CERTIFICATION OF SERVICE I hereby certify that I am this day serving a tree and correct copy of the attached Amended Complaim on the following individual by First Class U.S. Mail addressed as follows: Karl E. Rominger, Esquire 155 South Hanover Street Carlisle, PA 17013 Date: 4~e'~e~'~. ¢d'ise, Esquire Id. No. 16142 126 Locust Street P. O. Box 11489 Harrisburg, PA 17108-1489 (717) 238-3838 Attorney for Plaimiff VIP HAIR STUDIO AND DAY SPA, INC., · Vo JUSTIN M. KELLY, IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA : : CIVIL ACTION - EQUITY : : NO. 03-850 EQUITY TERM : Defendant : NOTICE TO PLEAD TO: VIP Hair Studio and Day Spa, Inc. C/o Kenneth A. Wise 126 Locust Street P.O. Box 11480 Harrisburg, PA 17108-1489 You are hereby notified to file a written response to the enclosed Preliminary Objections of Defendant to Plaintiffs Amended Complaint Pursuant to Pa. R.C.P. No. 1028(a)(4) and No. 1059 within twenty (20) days from service hereof or a judgment may be entered against you. Respectfully submitted, ROMINGER & BAYLEY Date: /~ ~ ~.. ~oom---~nger, E~ 155 South Hanover Street Carlisle, PA 17013 (717) 241-6070 Supreme C, ourt ID # 81924 Attorney fi)r Defendant VIP HAIR STUDIO AND DAY SPA, INC., · Vo JUSTIN M. KELLY, IN THE COURT OF COMMON PLEAS OF Plaintiff : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION - EQUITY : : NO. 03-850 EQUITY TERM : Defendant : PREI,IMINARY OBJECTIONS OF DEFENDANT TO PLAINTIFF'S AMENDED COMPLAINT PURSUANT TO Pa. R.C.P. No. 1028(a)(4) and No. 1509 AND NOW, comes Defendant, Justin M. Kelly, by and through his counsel, Karl E. Rominger, Esquire of the Law Firm of Rominger & Bayley and respectfully brings the following Preliminary Objections to Plaintiff's Amended Complaint: 1. On or about February 26, 2003, Plaintiff VIP Hair Studio and Day Spa, Inc., a Pennsylvania corporation initiated suit against Defendant. 2. Preliminary Objections were filed on April 8, 2003, along with a Notice to Plead, and Plaintiff filed an Amended Complaint which is now the subject of these Preliminary Objections. 3. The suit is brought in equity to both enforce restrictive covenants which Plaintiff alleges restrain Defendant from his present employment, and for damages for actions of Defendant which are alleged to be a breach of those same restrictive covenants. 4. The complaint alleges that Defendant began work for Plaintiff on or about July 9, 2001. 5. The complaint references an employment agreement as the source of the covenants, which is attached and incorporated to the complaint, and is dated July 17, 2001. 6. The contract purports to be between Defendant and Pennsylvania corporation V./.P. Hair and Tanning Salon Corporation, which at the time of this action, and at the time of July 17, 2001, was and is a valid Pennsylvania Corporation separate and different from VIP Hair Studio and Day Spa, Inc., the named Plaintiff. 7. It is alleged in the complaint that there was an oral agreement between Plaintiff and Defendant that he would sign said contract. 8. The complaint also alleges that "employment agreement erroneously states the employer as "V.I.P. Hair and Tanning Salon Corporation", which was a mutual mistake of both parties." (See paragraph 9) 9. In Plaintiff' s complaint it is alleged that the employment relationship began on or about July 9th, but that no written Noncompete or other employment covenant was entered into until July 17, 2001. 10. This fact alone renders the restrictive covenants unenforceable, as employment began before the agreement was signed, and Defendant could not freely, intelligently and knowingly enter into said restrictive covenants after employment had already began. 11. Further, Plaintiff alleges in paragraphs 10 thru 14 of the complaint that Defendant has violated the agreement by nature of his employment with another hair studio, Sassy Cuts, which is within fifteen (! 5) miles of Plaintiff. 12. However, paragraph 8 of the alleged employment agreement says in part that, "employee will not engage in any business activity of cutting or styling hair for profit for any similar or associated business, either as a member of a partnership or as an officer, an employee, director, or stock holder of any corporate entity, 'within a radius of fifteen (15) miles from the current job site of the employer, or any other stores employer may open or maintain". (Emphasis added) 13. The language is clear, and assuming arguendo that it would apply, these restrictions do not apply to Defendant if he works as an employee of a sole proprietorship. It only barrs him from engaging in similar activity as a member of a partnership, or as an officer, employee, director, or stock holder of any corporate entity. 14. Plaintiff has added language in paragraph 14 of the Amended Complaint alleging that Defendant understood that the Employment Agreement would be violated by his working at Sassy Cuts. 15. This pleading as to state of mind is irrelevant, because, assuming agruendo, that the agreement is valid and/or enforceable, paragraph 11 of the Employment Contract mandates the contract is to be decided only on its four comers and not any outside representation. 16. No where in the complaint is it alleged that Sassy Cuts is a partnership, or corporate entity which would allow for the invocation of paragraph 8, and thus the claim fails. 17. Further, since Plaintiff is not the entity named in the contract with Defendant, and given the fact that the restrictive covenants in the employment contract are not enforceable it assigned, absent a assignability clause, Plaintiff has no ability to enforce said covenants, assuming arguendo they could have been enforced or could be enforced by the entity named in said contract. WHEREFORE, for the foregoing reasons and pursuant to Rule 1028(4) of the Pennsylvania Rules of Civil Procedure, Defendant demurs to the claims of Plaintiff and respectfully asks that this Court dismiss the complaint for failure to state a cause of action upon which relief can be granted. COUNT II. PRELIMINARY OBJECTIONS OF DEFENDANT PURSUANT TO Pa. R.C.P. No. 1028 (a) (4) and 1509 18. Previous paragraphs are incorporated by reference. 19. Plaintiff has 20. Count II of the Complaint alleges that the Employment Contract, in particular paragraph 6 (c) (Exhibit A to the Amended Complaint), requires Defendant to repay any money spent on classes for Defendant. 21. This is a claim for either a breach of contract or possibly unjust enrichment, which are actions at law. 22. Rule 1020 of the Pa.R.C.P. states that a "Plaintiff may state in the complaint more than one cause of action against the same Defendant heretofore asserted in assumpsit or trespass"and Pa.R.C.P. Rule 1508 entitled "Pleading More than One Cause of Action" the rule states "The Plaintiff may state in the complaint two or more causes of action cognizable in equity". 23. 24. Thus, Count II is not properly joinable with Count I in the Court of Equity. This Honorable Court should sever the two suits pursuant to Pa.R.C.P. Rule 1509 and certify the contract action to the law side of the Court and/or dismiss Count II without prejudice for Plaintiff to file an action at law as appropriate. WHEREFORE, Defendant respectfully asks that this Honorable Court enforce the Rules of Civil Procedure and sever Plaintiffs claims and certify Count II to the law side of Court, on a separate docket, or in the alternative, dismiss Plaintiff's claim at law without prejudice to refile the same at law as an action at law. Respectfully submitted, ROMINGER & BAYLEY Date: /~ot7 2 3~' Z Karl E. Rominger, Esquire 155 South Hanover Street Carlisle, PA 17013 (717) 241-6070 Supreme Court ID # 81924 Attorney fi>r Defendant VIP HAIR STUDIO AND DAY SPA, INC., · IN THE COURT OF COMMON PLEAS OF Plaintiff · CUMBERLAND COUNTY, PENNSYLVANIA · CIVIL ACTION - EQUITY V. · NO. 03-850 EQUITY TERM JUSTIN M. KELLY, ' Defendant CERTIFICATE OF SERVICE I, Karl E. Rominger, Esquire, attorney for Defendant, do hereby certify that I this day served a copy of the Preliminary Objections of Defendant to Plaintiff's Amended Complaint Pursuant to Pa. R.C.P. no. I028(a)(4) and No. 1059, upon the following by depositing same in the United States Mail, first class postage prepaid, at Carlisle, Pennsylvania, addressed as follows: Kenneth A. Wise, Esquire 126 Locust Street P.O. Box 11489 Harrisburg, PA 17108-1489 Dated: ]~~7 Karl E. Rominger, Esquire Attomey :for Defendant VIP HAIR STUDIO AND DAY SPA, INC.,: IN THE COURT OF COMMON PLEAS : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiff, : : v. : CIVIL ACTION - EQUITY : JUSTIN M. KELLY, : NO. 03-850 : Defendant. : RESPONSE OF PLAINTIFF TO PRELIMINARY OBJECTIONS OF DEFENDANT AND NOW, comes Plaintiff, by its undersigned counsel, and respectfully responds to the Preliminary Objections of Defendant, setting forth in support thereof as follows: 1. Admitted. 2. Admitted. The document speaks for itself. 3. The document speaks for itself. 4. Admitted. 5. The document speaks for itself. By further way of response, Plaintiff incorporates by reference Paragraphs 7-9 of the Complaint. 6. Admitted that Defendant was informed before he started work that he would have to sign a noncompetition and confidentiality agreement and that this agreement was entered into prior to the time he started work. 7. Admitted. The document speaks for itself. 8. Admitted only that Defendant was previously informed of having to sign an employment contract with noncompetition and confidentiality clauses and that Defendant agreed to do so prior to his hire and starting work. 9. This is a legal conclusion for which no response is necessary. Further denied that Plaintiff did not freely, intentionally and knowingly enter into some restrictive covenants beforehand which he did. 10. Admitted. The document speaks for itself. 11. The document speaks for itself. 12. Denied. It suffices to say that Defendant has admitted that in a deposition that he understood he would be bound by the restrictive covenant had the agreement been with "VIP Hair Studio and Day Spa, Inc." (Plaintiff) as opposed to "VIP Hair and Tanning Salon Corporation". As such, Defendant has, in effect, admitted to a mutual mistake which provides a basis for holding him liable under the agreement. 13. Denied for reasons set forth elsewhere herein. 14. Denied for reasons set forth and referenced herein. WHEREFORE, Plaintiff respectfully requests that Defendant's Preliminary Objections be denied. Date: ~~//P-~ ? K~,'E~quire Attorney I.D. No. 16142 126 Locust Street P. O. Box 11489 Harrisburg, PA 17108-1489 (717) 238-3838 Attorney for Plaintiff VERIFICATION Upon my personal knowledge or information and belief, I hereby verify that the facts averred in the foregoing Response of Plaintiff to Preliminary Objections of Defendant are true and correct to the best of my knowledge, information, and belief. I understand that false statements or averments therein made will subject me to the criminal penalties of 18Pa. C.S. § 4904 relating to unswom falsification to authorities. Date:__ gTACEY KENNI~ CERTIFICATE OF SERVICE I hereby certify that I am this day serving a true and correct copy of the attached Response of Plaintiff to Preliminary Objections of Defendant on the following individual by First Class U.S. Mail addressed as follows: Karl E. Rominger, Esquire Rominger & Bayley 155 South Hanover Street Carlisle, PA 17013 Date: ~ A.' Wise, Esquire Id. No. 16142 126 Locust Street P. O. Box 11489 Harrisburg, PA 17108-1489 (717) 238-3838 Attorney For Plaintiff