HomeMy WebLinkAbout10-2662RED-
{
CIF,
20 10 APR 2 1 N-11
r"' UNI
1 tp .
Johnson, Duffle, Stewart & Weidner Attorney for Plaintiff
By: John R. Ninosky
I.D. No. 78000
Elizabeth D. Snover
I.D. No. 200997
301 Market Street - P. O. Box 109
Lemoyne, PA 17043-0109
(717) 761-4540
BRUCE K. BARCLAY, IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
Plaintiff
NO. I? In lO -W,
V.
CIVIL ACTION - LAW
BBEC, INC., DECLARATORY JUDGMENT REQUESTED
Defendants JURY TRIAL DEMANDED
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, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE
CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER.
IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO
PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL
SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE.
Cumberland County Bar Association
32 South Bedford Street
Carlisle, Pennsylvania 17013
Telephone: 717-249-3166
Toll Free: 800-990-9106
g9'-061A &?-7
44 33"7
ett- '?? SOU9V4
"ISO
USTED HA SIDO DEMANDADO/A EN CORTE. Si usted desea defenderse de las
demandas que se presentan m6s adelante en las siguientes p6ginas, debe tomar acci6n dentro
de los pr6ximos veinte (20) dias despu6s de la notificaci6n de esta Demanda y Aviso radicando
personalmente o por medio de un abogado una comparecencia escrita y radicando en la Corte
por escrito sus defensas de, y objecciones a, las demandas presentadas aqui en contra suya. Se
le advierte de que si usted falla de tomar acci6n como se describe anteriormente, el caso puede
proceder sin usted y un fallo por cualquier suma de dinero reclamada en la demanda o cualquier
otra reclamaci6n o remedio solicitado por el demandante puede ser dictado en contra suya por la
Corte sin m6s aviso adicional. Usted puede perder dinero o propiedad u otros derechos
importantes para usted.
USTED DEBE LLEVAR ESTE DOCUMENTO A SU ABOGADO INMEDIATAMENTE. SI
USTED NO TIENE UN ABOGADO, LLAME O VAYA A LA SIGUIENTE OFICINA. ESTA OFICINA
PUEDE PROVEERLE INFORMACION A CERCA DE COMO CONSEGUIR UN ABOGADO.
SI LISTED NO PUEDE PAGAR POR LOS SERVICIOS DE UN ABOGADO, ES POSIBLE
QUE ESTA OFICINA LE PUEDA PROVEER INFORMACION SOBRE AGENCIAS QUE
OFREZCAN SERVICIOS LEGALES SIN CARGO O BAJO COSTO A PERSONAS QUE
CUALIFICAN.
Cumberland County Bar Association
32 South Bedford Street
Carlisle, Pennsylvania 17013
Telephone: 717-249-3166
Toll Free: 800-990-9106
Johnson, Duffle, Stewart & Weidner
By: John R. Ninosky
I.D. No. 78000
Elizabeth D. Snover
I.D. No. 200997
301 Market Street - P. O. Box 109
Lemoyne, PA 17043-0109
(717) 761-4540
BRUCE K. BARCLAY,
Plaintiff
V.
BBEC, INC.,
Defendants
Attorney for Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
DECLARATORY JUDGMENT REQUESTED
COMPLAINT
JURY TRIAL DEMANDED
AND NOW, comes the Plaintiff, by and through his counsel, Johnson, Duffie, Stewart &
Weidner, P.C., who files this Complaint and respectfully states the following:
PARTIES
1. The Plaintiff is Bruce K. Barclay (hereinafter "Mr. Barclay"), an adult individual
who resides at 253 Brindle Road, Mechanicsburg, Cumberland County, Pennsylvania.
2. The Defendant is BBEC, Inc., a corporation organized and existing under the
laws of Pennsylvania with a principal place of business located at 507 North York Street,
Mechanicsburg, Cumberland County, Pennsylvania 17055.
1
VENUE
3. Venue in this action is proper in Cumberland County, Pennsylvania in that the
Defendant transacts and maintains a principal place of business in Cumberland County.
FACTUAL BASIS FOR CAUSES OF ACTION
4. This is, in part, an action for declaratory judgment pursuant to 42 Pa.C.S. § 7531
et seq., for the purpose of determining a question of actual controversy between the parties as
hereinafter more fully appears.
5. Mr. Barclay entered into an Employment Agreement (hereinafter "Agreement")
with BBEC, Inc. dated December 15, 2000. A true and correct copy of the Agreement (with
irrelevant portions redacted) is attached hereto as Exhibit A.
6. Throughout the Agreement, Mr. Barclay is referred to as "Employee" and BBEC,
Inc. is referred to as "Company."
7. The Agreement, at subsection 5(a), states as follows:
5. Other Benefits:
(a) Health Insurance. Company agrees to provide health insurance
coverage on behalf of Employee at Company cost during the Term.
Further, Company agrees to provide health insurance coverage, on
behalf of Employee, following the end of his employment under this
Agreement at Company cost until the earlier of Employee's death or the
date Employee attains age 65.
2
8. The "Term" referred to in subsection 5(a) is the "Term of Employment"
enumerated in subsection 3 being "a period commencing on the date of this Agreement
(December 15, 2000) and ending on December 31, 2020... unless the Employee's employment
is sooner terminated in accordance with one of the provisions of this Section 3... (Exhibit A,
subsection 3)
9. On April 9, 2008, Mr. Barclay voluntarily terminated his employment with BBEC,
Inc.
10. Voluntary Termination is provided for in the Agreement at subsection 3(b):
Voluntary Termination, Retirement, or Death. If the Employee voluntarily terminates
employment, retires or dies, the Employee's employment under this Agreement will be
deemed terminated as of the date of the Employee's voluntary termination, retirement or
death and all rights of the Employee hereunder will cease as of the date of such
termination and any benefits payable to the Employee will be determined in accordance
with the pension, welfare, fringe benefit, expense reimbursement, salary deferral and
insurance programs of the Company then in effect.
11. Subsection 5(a) of the Agreement requires BBEC, Inc. to continue to provide
health coverage to Mr. Barclay at cost to BBEC, Inc. following the end of his employment
(including voluntary termination) with BBEC, Inc. and until Mr. Barclay attains the age of 65.
12. Despite the clear terms of the Agreement,. as of April 2008, BBEC, Inc. has
failed to provide health insurance coverage for Mr. Barclay.
3
13. Mr. Barclay now seeks a declaratory judgment that, under the terms of the
Agreement, BBEC, Inc. is required to provide health coverage to Mr. Barclay at BBEC, Inc.'s
cost as set forth in subsection 5(a) after his voluntary termination and until he attains age 65.
14. Mr. Barclay also seeks damages for breach of subsection 5(a) of the Agreement
in an amount equal to the sums expended by Mr. Barclay to maintain health coverage for
himself from April 2008 until such time as BBEC, Inc. resumes the provision of health insurance
coverage for Mr. Barclay as set forth in the Agreement.
COUNTI
DECLARATORY JUDGMENT ACTION PURSUANT TO 42 Pa. C.S.A. 7531 et seg.
15. Plaintiff incorporates by reference the averments of paragraphs 1 through 14 as if
the same were set forth herein at length.
16. The Agreement, specifically subsection 5(a), requires BBEC, Inc. to provide
health insurance coverage for Mr. Barclay until he attains the age of 65.
17. Mr. Barclay seeks a declaratory judgment of the obligations of BBEC, Inc. under
the terms of the Agreement at subsection 5(a) in order to remove any uncertainty as to those
contractual obligations to provide health insurance coverage.
4
WHEREFORE, Plaintiff respectfully requests this Honorable Court to declare that, under
the terms of the Employment Agreement, BBEC, Inc. is obligated to provide health coverage to
Bruce K. Mr. Barclay until he attains the age of 65 and was required to do so after his voluntary
termination.
COUNT II
BREACH OF EMPLOYMENT AGREEMENT
18. Plaintiff incorporates by reference the averments of paragraphs 1 through 17 as if
the same were set forth herein at length.
19. The Agreement clearly requires BBEC, Inc. to provide health insurance
coverage to Mr. Barclay after his voluntary termination of employment and until he attains the
age of 65.
20. BBEC, Inc. is in breach of the terms of the Agreement in failing to provide health
insurance coverage for Mr. Barclay from April 2008 to the present.
21. As a result of this breach, Mr. Barclay has obtained health insurance coverage
for himself and maintains that coverage at his own cost at present and a demand is made
therefore.
22. Mr. Barclay will continue to incur the cost of health insurance coverage until such
time as BBEC, Inc. provides coverage as set forth in the agreement.
5
23. A demand is also made for these future costs incurred by Mr. Barclay until such
time as BBEC, Inc. provides the coverage as required by the Agreement.
WHEREFORE, Plaintiff seeks a judgment representing the costs he has incurred to
obtain and maintain health insurance coverage after April 2008 to the present and in the future
until BBEC, Inc. provides coverage as provided for in the Agreement plus any other relief that
this Court deems appropriate.
JOHNSON, DUFFIE, STEWART & WEIDNER
By: qld4 gdkzld?
ohn R. Ninosky
Elizabeth D. Snover
Attorneys for Plaintiff
Date: April 20, 2010
393724
6
EMPLOYMENT AGREEMENT
THIS AGREEMENT ("Agreement") made as of the /day of December 2000,
between BBEC, INC., a Pennsylvania business corporation (the "Company"), and BRUCE K.
BARCLAY, an individual (the "Employee").
WITNESSETH:
WHEREAS.
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, agree as
follows:
1. Employment. Company hereby agrees to employ the Employee, and the
Employee hereby accepts employment with the Company, on the terms and conditions set forth
in this Agreement.
2. Duties of Employee. The Employee will perform and discharge well and
faithfully such duties and will be employed as President and Chief Executive Officer, and will
hold such other titles as may be given to him from time to time by the Board of Directors.
3. Term of Employment. The Employee's employment under this Agreement will
be for a period commencing upon the date of this Agreement and ending on December 31, 2020,
hereinafter defined as (the "Term"), unless the Employee's employment is sooner terminated in
accordance with one of the provisions of this Section 3; provided, however, the term of this
Agreement will automatically renew for a one-year period commencing on the twentieth
368483.4 PLAINTIFF'S
MOM
A
anniversary date of the original term, unless either party gives written notice of nonrenewal to the
other party no later than sixty (60) days prior to the end of the original term. The term of this
Agreement shall automatically renew for additional one-year periods thereafter unless either
party gives written notice of no renewal to the other party no later than sixty (60) days prior to
the end of the one-year renewal term.
(a) Termination for Cause. The Employee's employment under this
Agreement may be terminated at any time during the Term for "Cause" (as herein
defined), by action of the Board of Directors of the Company, upon giving written
notice of such termination to the Employee. As used in this Agreement, "Cause"
means any of the following events:
(i) the Employee is convicted of or enters a plea of
guilty or nolo contendere to a felony, a crime of falsehood, or a
crime involving, fraud or moral turpitude, or the actual
incarceration of the Employee for a period of ten (10) consecutive
days; or
(ii) the Employee has, in the reasonable opinion of the
Board of Directors, committed an intentional act of fraud,
embezzlement or theft in connection with the Employee's duties in
the course of his employment or has caused intentional damage to
property of the Company or has intentionally and wrongfully
disclosed Confidential Information. {
If the Employee's employment is terminated under the provisions of this
subsection, then all rights of the Employee under Section 4 will cease as of the
effective date of such termination.
(b) Voluntary Termination. Retirement or Death. If the Employee
voluntarily terminates employment, retires or dies, the Employee's employment
under this Agreement will be deemed terminated as of the date of the Employee's
voluntary termination, retirement or death, and all rights of the Employee
hereunder will cease as of the date of such termination and any benefits payable to
the Employee will be determined in accordance with the pension, welfare, fringe
benefit, expense reimbursement, salary deferral and insurance programs of the
Company then in effect.
(c) Disabili . If the Employee is incapacitated by accident, sickness,
or otherwise so as to render the Employee mentally or physically incapable of
performing the essential duties required of the Employee under Section 2,
notwithstanding reasonable accommodation, for a continuous period of eighteen
(18) months, then, upon the expiration of such period or at any time thereafter, by
-2-
action of the Board of Directors of the Company, the Employee's employment
under this Agreement may be terminated immediately upon giving the Employee
notice to that effect. If the Employee's employment is terminated under the
provisions of this subsection 3(b), then all rights of the Employee under Section 4
will cease as of the last business day of the week in which such termination
occurs, and the Employee will thereafter be entitled to the benefits to which he is
entitled under any disability plan of the Company, if any, in which he is then a
participant.
4. Term Compensation and Related Matters. -
(a) Salary. For services. performed by the Employee under this
Agreement, the Company will pay the Employee a salar , in the aggregate, during
the Term, at the annualized rate of 1
. payable at the same times as salaries are payable to other
employees or the Company. Employee's base compensation shall be adjusted
annually by percent ( %) over the Term.
(b) Bonus. Employee may also be eligible to receive an annual bonus
(c) Pension and Welfare Benefits. The Company will provide the
Employee, during the Term, with pension and welfare benefits (within the
meaning of Section 3 of the Employee Retirement Income Security Act of 1974,
as amended ("ERISA")) in the aggregate not less favorable than those received by
other employees of the Company.
(d) Supplemental Life Insurance. Company agrees to pay the
premium cost of all life insurance which Employee maintains as of the effective
date of this Agreement.
(e) Automobile. Company agrees to provide for Employee during the
Term the use of an automobile, model and make determined by the Board of
Directors and to reimburse Employee for all costs associated with the vehicle,
including fuel, mileage, and maintenance.
-3-
(f) Expense Reimbursement. The Employee will be entitled to
reimbursement of all expenses incurred by him in the discharge of his duties in
the furtherance of the business of the Company.
(g) Technology. Company agrees to pay the costs of technology
connections and equipment required by Employee in order that Employee can
fulfill his responsibilities as President and Chief Executive Officer, including
necessary links and equipment at Employee's office and residence locations. The
Company will be responsible for updating such connections and equipment so that
it is compatible with the Company's equipment. Upon the termination of this
Agreement any equipment installed as of such date shall be deemed the property
of the Employee.
(h) Incidental Benefits. To avoid interference with Employee's
significant responsibilities as President and Chief Executive Officer, Company
agrees that in lieu of paying Employee an additiona 'toward his base
salary, the Company will pay for the incidental expenses of Employee, as agreed
between Employee and the Company, provided however, said amount to be
adjusted as per base salary adjustments pursuant to Section 4(a).
5. Other Benefits.
(a) Health Insurance. Company agrees to provide health insurance
coverage on behalf of Employee at Company cost during the Term. Further,
Company agrees to provide health insurance coverage, on behalf of Employee,
following the end of his employment under this Agreement at Company cost until
the earlier of Employee's death or the date Employee attains age 65.
(b) Vacation. The Employee will be entitled to not less than twelve
(12) weeks of vacation per calendar year or such other amount, not less than
twelve (12) weeks, as may be approved from time to time by the Board of
Directors. Employee may carry over any unused vacation days. Upon
Employee's termination of employment, whether by expiration of this Agreement
or otherwise, Employee shall be entitled to payment for any carried over and
unused vacation days.
6. Confidentiality.
(a) As used in this section, the term "Confidential Information" means
any and all information regarding the organization, business or finances of the
Company or any of its subsidiaries and affiliates, including, but not limited to, any
and all business plans and strategies, financial information, proposals, reports,
marketing plans and information, cost information, customer information,
-4-
customer lists, claims history and experience data, sales volume and other sales
statistics, personnel data, pricing information, and concepts and ideas.
(b) The Employee acknowledges and agrees that his employment by
the Company will afford him an opportunity to acquire Confidential Information
and that the misappropriation or disclosure of any Confidential Information would
cause irreparable harm to the Company and its subsidiaries and affiliates.
(c) During the Term and for a period of three (3) years thereafter, the
Employee will not use for the benefit of anyone other than the Company and its
subsidiaries and affiliates or disclose any of the Confidential Information for any
reason or purpose whatsoever except to authorized representatives of such
business entities or as directed or authorized by the Company.
(d) Upon termination of this Agreement, the Employee will
immediately surrender to the owner thereof all documents (other than documents
created by him) in his possession, custody or control embodying the Confidential
Information or any part thereof and will not thereafter remove the same from the
premises on which it is located.
(e) The provisions of this Section 5 shall survive termination of this
Agreement for any reason.
7. Non-Compete Obligation. Employee agrees that during the Term of this
Agreement and for a period of three (3) years after the end of the Term; or any extension thereof,
Employee shall not, directly or indirectly, engage (as principal, partner, director, officer, agent,
employee, or owner, with or without compensation) in any line of business that the Company is
involved within one hundred (100) miles of the main office of the Company. Notwithstanding
the above, the provisions of this Section 7 shall not apply to Employee's ownership interest in
Infrastructure Technology Contractors, incorporated.
Employee shall not entice or solicit, directly or indirectly, any other executives or key
management personnel of the Company (or any subsidiary) to work with Employee or any entity
with which Employee has affiliated for a period of three (3) years after the end of the Term, or
any extension thereof. Employee shall also not entice or solicit, directly or indirectly, any client
or customer of the Company (or any subsidiary) for any competitor or in any competitive activity
for a period of three (3) years after the end of the initial Term or any extension thereof.
8. Remedies. Employee acknowledges and agrees that the remedy at law of the
Company for a breach or threatened breach of any of the provisions of Sections 5 or 6 would be
inadequate and, in recognition of this fact, in the event of a breach or threatened breach by the
Employee of any of the provisions of Sections 5 or 6, it is agreed that, in addition to the remedy
at law, the Company will be entitled to, without posting any bond, and the Employee agrees not
-5-
to oppose any request of the Company for, equitable relief in the form of specific performance, a
temporary restraining order, a temporary or permanent injunction, or any other equitable
remedy which may then be available. Nothing herein contained will be construed as prohibiting
the Company from pursuing any other remedies available to them for such breach or threatened
breach.
9. Indemnification. The Company will indemnify the Employee, to the fullest extent
permitted under Pennsylvania and federal law, with respect to any threatened, pending or
completed legal or regulatory action, suit or proceeding brought against him by reason of the fact
that he is or was a director, officer, employee or agent of the Company. To the fullest extent
permitted by Pennsylvania and federal law, the Company will, in advance of final disposition,
pay any and all expenses incurred by the Employee in connection with any threatened,
pending or completed legal or regulatory action, suit or proceeding with respect to which he may
be entitled to indemnification hereunder. The Company will use their best efforts to obtain
insurance coverage for the Employee under a policy covering directors and officers thereof
against litigation, arbitrations and other legal and regulatory proceedings.
10. Notices. Any notice required or permitted-to be given under this Agreement will,
to be effective hereunder, be given to the Company, in the case of notices given by the
Employee, and will, to be effective hereunder, be given by the Company, in the case of notices
given to the Employee. Any such notice will be deemed properly given if in writing and if
mailed by registered or certified mail, postage prepaid with return receipt requested, to the
residence of the Employee, in the case of notices to the Employee, and to the main office of the
Company.
11. Waiver. No provision of this Agreement may be modified, waived, or discharged
unless such waiver, modification, or discharge is agreed to in writing and signed by the parties.
No waiver by any party hereto at any time or any breach by the other parry hereto of, or
compliance with, any condition or provision of this Agreement to be performed by such other
party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.
12. Assignm . This Agreement is not assignable by any party hereto, except by the
Company to any successor in interest to the respective businesses of the Company.
13. Entire Agreement. This Agreement contains the entire agreement of the parties
relating to the subject matter of this Agreement and supersedes any prior agreement of the
parties.
14. Validi . The invalidity or unenforceability of any provisions of this Agreement
will not affect the validity or enforceability of any other provision of this Agreement, which will
remain in full force and effect.
-6-
15. Applicable Law. Except to the extent preempted by federal law, this Agreement
will be governed by and construed in accordance with the domestic internal law of the
Commonwealth of Pennsylvania.
16. Headings. The headings of the sections and subsections of this Agreement are for
convenience only and will not control or affect the meaning or construction or limit the scope or
intent of any of the provisions of this Agreement.
17. Effective Date. This Agreement will become effective immediately upon the
execution and delivery of this Agreement by the parties hereto.
18. Withholding for Taxes. All amounts and benefits paid or provided hereunder will
be subject to withholding for taxes as required by law.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
BBEC, INC.
By:
(Vice) Preside
(SEAL)
EMPLOYEE
By:
Bruce K. Barcla
-7-
VERIFICATION
1, BRUCE BARLCAY, have read the foregoing Complaint, and hereby affirm that
it is true and correct to the best of my personal knowledge, or information and belief.
This Verification and statement is made subject to the penalties of 18 Pa. C.S. §4904
relating to unswom falsification to authorities; I verify that all the statements made in the
foregoing are true and correct and that false statements may subject me to the penalties
of 18 Pa. C.S. §4904.
Bruce Barclay
Date:
39MI
,- ,
FILE?-~;~r f~~~
2010 .~Li~~ -8 ~~ I I ~ ~2
cur~,,~~ , ~~ ~:~~3n
Johnson, Duffle, Stewart 8~ Weidner
By: John R. Ninosky
I.D. No. 78000
Elizabeth D. Snover
I.D. No. 200997
301 Market Street ~ P. O. Box 109
Lemoyne, PA 17043-0109
(717) 761-4540
BRUCE K. BARCLAY,
Plaintiff
v.
BBEC, INC.,
Defendant
Attorney for Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 10-2662
CIVIL ACTION -LAW
DECLARATORY JUDGMENT REQUESTED
JURY TRIAL DEMANDED
PLAINTIFF'S REPLY TO DEFENDANT'S NEW MATTER
AND NOW, comes the Plaintiff, Bruce K. Barclay, by and through his counsel, Johnson,
Duffle, Stewart & Weidner, P.C., who files this Reply to New Matter by respectfully stating the
following:
24. Denied. The averments contained in these paragraphs contain conclusions of law
and fact to which no response is required. If a response is deemed required, the averments
contained herein are denied.
25. Admitted. By way of further answer, Mr. Barclay was forced to pay for COBRA
coverage due to BBEC, Inc. wrongfully terminating Mr. Barclays coverage.
WHEREFORE, Plaintiff, Bruce K. Barclay, respectfully requests judgment in his favor
against Defendant, BBEC, Inc.
Respectfully submitted,
JOHNSON, DUFFIE, STEWART & WEIDNER
By:
J n R. Ninosky, Esquire
A orney I.D. No. 78000
301 Market Street
P. O. Box 109
Lemoyne, PA 17043-0109
Telephone (717) 761-4540
Attorneys for Plaintiff
Date: June 7, 2010
Page 2 of 2
I, BRUCE BARLCAY, h~~e read the foregoing P~frttlll"'s Reply tb New AAstler,
--,~~ ~~~
Bruce Barclay
Date: L 7 ~`~"
6/7/2010
CERTIFICATE OF SERVICE
I hereby certify that a copy of the foregoing Plaintiffs Reply to New Matter has
been duly served upon the following counsel of record, by depositing the same in the
United States Mail, postage prepaid, in Lemoyne, Pennsylvania, on June 7, 2010:
George B. Faller, Jr., Esquire
Martson Law Offices
10 East High Street
Carlisle, PA 17013
JOHNSON, DUFFIE, STEWART & WEIDNER
By:
Joh R. Ninosky
~~
FILL" _~
, .r ~ i.. 1,' "'4
~~;' Tre_ _ ~ ~,~ ~ _ I',;~W
~, ~ „, .~. 4 ..
~t .:=
LL'iu ~.`~.~~' L(~J ~ ii L' .1
c~ » - - ~~~~~~ ~~~
~,
,:: ,
. .
JOHNSON, DUFFIE, STEWART 8~ WEIDNER
By: John R. Ninosky
I.D. No. 78000
Elizabeth D. Snover
I.D. No. 200997
301 Market Street ~ P. O. Box 109
Lemoyne, PA 17043-0109
(717) 761-4540
Attorney for Plaintiff
BRUCE K. BARCLAY, IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
Plaintiff
NO. 10-2662
v. :
CIVIL ACTION -LAW
BBEC, INC., DECLARATORY JUDGMENT REQUESTED
Defendants JURY TRIAL DEMANDED
MOTION FOR JUDGMENT ON THE PLEADINGS
AND NOW, comes the Plaintiff, by and through his counsel, Johnson, Duffie, Stewart &
Weidner, P.C., who files this Motion for Judgment on the Pleadings by respectfully stating the
following:
1. The Plaintiff Bruce K. Barclay (hereinafter "Mr. Barclay") has filed a Declaratory
Judgment and Breach of Contract Action against the Defendant BBEC, Inc. relating to a
provision in Mr. Barclays Employment Agreement (attached to the Complaint as Exhibit A)
regarding health insurance benefits.
2. The pleadings in this matter are now closed and the legal dispute over the health
insurance benefits provision at Section 5(a) of the Employment Agreement (hereinafter
"Agreement") is ripe for disposition pursuant to Pennsylvania Rules of Civil Procedure 1034.
3. The undisputed facts are as follows: Mr. Barclay entered into the Agreement with
BBEC, Inc. dated December 15, 2000. (Complaint ¶ 5, Admitted in Answer ¶ 5) A true and
correct copy of the Agreement (with irrelevant portions redacted) was attached to the
Complaint and, for convenience, is attached hereto as Exhibit A.
4. Throughout the Agreement, Mr. Barclay is referred to as "Employee" and BBEC,
Inc. is referred to as "Company." (Complaint ¶ 6, Admitted in Answer ¶ 6)
5. The Agreement, at Section 5(a), states as follows:
5. Other Benefits:
(a) Health Insurance. Company agrees to provide health insurance
coverage on behalf of Employee at Company cost during the Term.
Further, Company agrees to provide health insurance coverage, on
behalf of Employee, following the end of his employment under this
Agreement at Company cost until the earlier of Employee's death or the
date Employee attains age 65.
(Complaint ¶ 7, Admitted in Answer ¶ 7) See, Exhibit A, Subsection 5(a).
6. The "Term" referred to in subsection 5(a) is the "Term of Employment"
enumerated in Section 3 being "a period commencing on the date of this Agreement
(December 15, 2000) and ending on December 31, 2020...unless the Employee's employment
is sooner terminated in accordance with one of the provisions of this Section 3... (Exhibit A,
subsection 3) (Complaint ¶ 8, Admitted in Answer ¶ 8)
2
7. On April 9, 2008, Mr. Barclay voluntarily terminated his employment with BBEC,
Inc. (Complaint ¶ 9, Admitted in Answer ¶ 9)
8. Voluntary Termination is provided for in the Agreement at subsection 3(b):
Voluntary Termination. Retirement or Death. If the Employee voluntarily
terminates employment, retires or dies, the Employee's employment under this
Agreement will be deemed terminated as of the date of the Employee's voluntary
termination, retirement or death and all rights of the Employee hereunder will
cease as of the date of such termination and any benefits payable to the
Employee will be determined in accordance with the pension, welfare, fringe
benefit, expense reimbursement, salary deferral and insurance programs of the
Company then in effect.
(Complaint ¶ 10, Admitted in Answer ¶ 10)
9. As stated in the Complaint, it is the position of Mr. Barclay that Subsection 5(a) of
the Agreement requires BBEC, Inc. to continue to provide health insurance coverage to Mr.
Barclay at cost to BBEC, Inc. following the end of his employment (including voluntary
termination) with BBEC, Inc. and until Mr. Barclay attains the age of 65 or dies.
10. As stated in the Answer with New Matter, it is the position of BBEC, Inc. that Mr.
Barclay is not entitled to the health insurance benefits provided at subsection 5(a) due to the
language at subsection 3(b) which states "all rights of the employee hereunder will cease as of
the date of such [voluntary] termination..." (Answer ¶¶ -20)
11. In deciding upon a motion for judgment on the pleadings under Pennsylvania
Rule of Civil Procedure 1034, a court may consider only the pleadings and any documents
properly attached thereto. Bata v. Central-Penn National Bank of Philadelphia 224 A.2d 174,
179 (Pa. 1966).
3
r ~
12. Where there are material issues of fact in dispute, judgment on the pleadings
cannot be entered. Miami National Bank v. Willens, 190 A.2d 438, 439 (Pa. 1963).
13. As to the text of the Agreement, there is no issue of fact in dispute.
14. Therefore, the interpretation of the Agreement and the obligations of BBEC, Inc.
under the terms of that Agreement are a question of law ripe for disposition by this Honorable
Court.
15. Indeed, the interpretation of an employment agreement, like any other contract,
is a question of law. See, Halpin v. LaSalle University, 639 A.2d 37, 39 (Pa. Super. 1994).
16. When interpreting a contract, the court's paramount goal is to ascertain and give
effect to the intent of the parties as reasonably manifested by the language of their written
agreement. Toombs NJ Inc. v. Aetna Casualty & Surety Co , 591 A.2d 304, 307 (Pa. Super.
1991).
17. When the language of a writing is clear and unequivocal, its meaning must be
determined by its contents alone. Greene v. Oliver Realty, Inc., 526 A.2d 1192, 1196, (Pa.
Super. 1987).
18. A written contract which is deemed unambiguous "must be held to express all of
the negotiations, conversations, and agreements made prior to its execution, and neither oral
4
testimony, nor prior written agreements, or other writings are admissible to explain or vary the
terms of the contract." McGuire v. Schneider. Inc., 534 A.2d 115, 117-118 (Pa. Super. 1987).
19. The fact that parties to a contract disagree upon its proper interpretation does not
necessarily render the writing ambiguous. Halpin v. LaSalle University, 639 A.2d at 39.
20. When determining whether a contract is ambiguous, a court must view the
contract as a whole and not in discrete units. O'Brien Energy Systems. Inc. v. American
Employers' Ins. Co., 629 A.2d 957, 960 (Pa. Super. 1993).
21. The question before this Court is whether the Agreement, read as a whole,
entitles Mr. Barclay to ongoing health insurance coverage after the date of his voluntary
termination.
22. It is submitted that paragraph 5(a), by its plain and unambiguous language,
provides "...Company agrees to provide health insurance coverage, on behalf of Employee,
following the end of his employment under this Agreement at Company cost until the earlier of
Employee's death or the date Employee attains age 65" and that the "discrete unit" cited by
BBEC, Inc. of Section 3(b) is not intended to annul the rights to insurance coverage under
Section 5(a).
23. BBEC, Inc. cites only a portion of Section 3(b) for the proposition that all rights
(including benefits) given in the Agreement to Mr. Barclay terminated with his employment.
5
24. However, Section 3(b) states in full part: "[i]f the Employee voluntarily terminates
employment, retires or dies... all rights of the Employee hereunder will cease as of the date of
such termination and any benefits payable to the Employee will be determined in accordance
with the pension, welfare, fringe benefit, expense reimbursement, salary deferral and insurance
programs of the Company then in effect."
25. When read as a whole, Section 3(b) appears to contemplate that, in the instance
of voluntary termination, Mr. Barclay would still be entitled to post-employment benefits as
determined by the Company's benefit plans and insurance programs.
26. As such, there is no apparent conflict between the Section 3(b) and Section 5(a)
which provides for: "health insurance coverage on behalf of Employee following the end of his
employment under [the] Agreement."
27. Besides the post-employment benefits given by the plain language of Section
5(a) of the Agreement, Section 3(b), when read as a whole, also contemplates payment of
benefits (pension, deferred compensation, fringe benefit) to Mr. Barclay after the term of his
employment despite the language cited by BBEC, Inc..
28. Additionally, Section 3(a) of the Agreement also contemplates the right to some
post-employment benefits in the instance of termination for cause.
29. Section 3(a) of the Agreement states, regarding termination for cause, that: "if the
Employee's employment is terminated under the provisions of this subsection, then all rights of
6
the Employee under Section 4 will cease as of the effective date of such termination." See,
Exhibit A to Complaint, ¶ 3(a).
30. As such, even if Mr. Barclay was terminated for cause (which did not occur here),
Mr. Barclay would still be entitled to the "Other Benefits" contained in Section 5 regarding health
insurance coverage and unused vacation pay after his termination.
31. Importantly, the Agreement is clear that both in instances of voluntary termination
and involuntary termination, Mr. Barclay is still entitled to receive some post-term or post
employment benefits contrary to the truncated quote proffered by BBEC, Inc. for the proposition
that Mr. Barclay is not entitled to the post-employment health insurance coverage provided
under Section 5(a) the Agreement.
32. Post-term or post-employment benefits also appear to be contemplated in the
structuring of the Agreement itself.
33. The Agreement separates the health insurance benefit provision under all "Other
Benefits" in Section 5 from those listed as "Term Compensation" under Section 4.
34. Therefore, the health insurance coverage provision that Mr. Barclay seeks to
enforce after his voluntary termination is not part of the "Term Compensation" but is listed as an
"Other Benefit" implying that these benefits (and the right to payment for unused vacation days)
are not part of the Term Compensation package.
7
35. BBEC, Inc. will ask this Honorable Court to use one small portion of Section 3(b)
to render all of the other provisions in the Agreement that give Mr. Barclay rights to post-term or
post-employment benefits as annulled or void.
36. However, this interpretation not only does not respect the language of Section
3(b) in its entirety, it also fails to respect the language of the whole Agreement which
contemplates rights to post-term benefits at Sections 3 and 5.
37. The Agreement as a whole must be respected since the language of 5(a) would
have little meaning if the provision of health insurance coverage to Mr. Barclay was to end with
his employment.
38. Additionally, it is long standing Pennsylvania law that one portion of an
agreement cannot be interpreted to annul another part of the same agreement. Laudig v.
Laudig, 624 A.2d 651, 654 (Pa. Super. 1993).
39. Rather, a court will endeavor to interpret the parties' contract to effectuate the
result reasonably intended by the parties. Id.
40. Section 5(a) clearly provides: "Other Benefits ... Company agrees to provide
health insurance coverage on behalf of Employee at Company cost during the Term. Further,
Company agrees to provide health insurance coverage, on behalf of Employee, following the
end of his employment... until the earlier of Employee's death or the date Employee attains age
65."
8
41. When read as a whole, it is clear that the intent of the parties in Section 5(a) was
to mandate that BBEC, Inc. provide health insurance benefits to Mr. Barclay during the term of
his employment and after the term until he reached 65 or died.
42. To interpret the Agreement as having one portion of Section 3(b) wiping out the
post-employment right to health coverage at 5(a) as suggested by BBEC, Inc. is contrary to
Pennsylvania law and contrary the Agreement's intent as ascertained from the document as a
whole.
WHEREFORE, Plaintiff respectfully requests this Honorable Court to declare that, under
the terms of the Employment Agreement, BBEC, Inc. is obligated to provide health coverage to
Bruce K. Mr. Barclay until he attains the age of 65 or until his death and was required to do so
after his voluntary termination.
Respectfully submitted,
JOHNSON, DUFFIE, STEWART & WEIDNER
By:
J n R. Ninosky, Esquire
Attorney I.D. No. 78000
Elizabeth D. Snover, Esquire
Attorney I.D. No. 200997
301 Market Street
P. O. Box 109
Lemoyne, PA 17043-0109
Telephone (717) 761-4540
Attorneys for Plaintiff
Date: June 25, 2010
:403155
9
1/l~LDYl~El~Ti AGREEN~1~'I'
THIS AGREEMENT ("Agreement'') made as of the ~~day of December 2000,
between BBEC, INC., a Pennsylvania business corporation (the "Company"), and BRUCE K.
BARCLAY, an individual (the "Employee").
WITNESSETH:
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
WHEREAS,
NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, agree as
follows:
1. Employment. Company hereby agrees to employ the Employee, and the
Employee hereby accepts employment with the Company, on the terms and conditions set forth
in this Agreement.
2. Duties of Employee. The Employee will perform and discharge well and
faithfully such duties and will be employed as President and Chief Executive Officer, and will
hold such other titles as may be given to him from time to time by the Board of Directors.
3. Term of Employment. The Employee's employment under this Agreement will
be for a period commencing upon the date of this Agreement and ending on December 31, 2020,
hereinafter defined as (the "Term"), unless the Employee's employment is sooner terminated in
accordance with one of the provisions of this Section 3; provided, however, the term of this
Agreement will automatically renew for aone-year period commencing on the twe 'e
368483.4
a PLAINTIFF'S
~ EXHIBIT
a J~
!"'~
~
a
anniversary date of the original term, unless either party gives written notice of nonrenewal to the
other party no later than sixty (b0) days prior to the end of the original term. The term of this
Agreement shall automatically renew for additional one-year periods thereafter unless either
party gives written notice of no renewal to the other party no later than sixty (60) days prior to
the end of the one-year renewal term.
(a) Termination for Cause. The Employee's employment under this
Agreement may be terminated at any time during the Tenn for "Cause" (as herein
defined), by action of the Board of Directors of the Company, upon giving written
notice of such termination to the Employee. As used in this Agreement, "Cause"
means any of the following events:
(i) the Employee is convicted of or enters a plea of
guilty or nolo contendere to a felony, a crime of falsehood, or a
crime involving fraud or moral turpitude, or the actual
incarceration of the Employee for a period of ten (10) consecutive
days; or A
(ii) the Employee has, in the reasonable opinion of the
Board of Directors, committed an intentional act of fraud,
. embezzlement or theft in connection with the Employee's duties in
.~ ~ the course of his employment or has caused intentional damage to
property of the Company or has intentionally and wrongfully
disclosed Confidential Information. i
If the Employee's employment is terminated under the provisions of this
subsection, then all rights of the Employee under Section 4 will cease as of the
effective date of such termination.
(b) Voluntary Termination, Retirement or Death. If the Employee
voluntarily terminates employment, retires or dies, the Employee's employment
under this Agreement will be deemed terminated as of the date of the Employee's
voluntary termination, retirement or death, and aII rights of the Employee
hereunder will cease as of the date of such termination and any benefits payable to
the Employee will be determined in accordance with the pension, welfare, fringe
benefit, expense reimbursement, salary deferral and insurance programs of the
Company then in effect.
(c) Disabili If the Employee is incapacitated by accident, sickness,
or otherwise so as to render the Employee mentally or physically incapable of
performing the essential duties required of the Employee under Section 2,
notwithstanding reasonable accommodation, for a continuous period of eighteen
(1S) months, then, upon the expiration of such period or at any time thereafter, by
-2-
action of the Board of Directors of the Company, the Employee's employment
under this Agreement may be terminated immediately upon giving the Employee
notice to that effect. If the Employee's employment is terminated under the
provisions of this subsection 3(b), then all rights of the Employee under Section 4
will cease as of the last business day of the week in which such termination
occurs, and the Employee will thereafter be entitled to the benefits to which he is
entitled under any disability plan of the Company, if any, in which he is then a
participant.
4. Term Compensation and Related Matters.
(a) S ar• For services .performed by the Employee under this
Agreement, the Company will pay the Employee a salary, in the aggregate, during
the Term, at the annualized rate of ~
payable at the same times as salaries are payable to other
employees or the Company. Employee's base compensation shall be adjusted
annually by percent Q %) over the Term.
(b) Bonus. Employee may also be eligible to receive an annual bonus
(c) Pension and Welfare Benefits. The Company will provide the
Employee, during the Term, with pension and welfare benefits (within the
meaning of Section 3 of the Employee Retirement Income Security Act of 1974,
as amended ("FRIBA")) in the aggregate not less favorable than those received by
other employees of the Company.
(d) Supplemental Life Insurance. Company agrees to pay the
premium cost of all life insurance which Employee maintains as of the effective
date of this Agreement.
(e) Automobile. Company agrees to provide for Employee during the
Term the use of an automobile, model and make determined by the Board of
Directors and to reimburse Employee for all costs associated with the vehicle;
including fuel, mileage, and maintenance.
-3-
(f) Expense Reimbursement. The Employee will be entitled to
reimbursement of all expenses incurred by him in the discharge of his duties in
the furtherance of the business of the Company.
(g) Technolo~y. Company agrees to pay the costs of technology
connections and equipment required by Employee in order that Employee can
fulfill his responsibilities as President and Chief Executive Officer, including
necessary links and equipment at Employee's office and residence locations. The
Company will be responsible for updating such connections and equipment so that
it is compatible with the Company's equipment. Upon the termination of this
Agreement any equipment installed as of such date shall be deemed the property
of the Employee.
(h) Incidental Benefits. To avoid interference with Employee's-
significant responsibilities as President and Chief Executive Officer, Company
agrees that in lieu of paying Employee an additions 'toward his base
salary, the Company will pay for the incidental expenses of Employee, as agreed
between Employee and the Company, provided however, said amount to be
adjusted as per base salary adjustments pursuant to Section 4(a).
5. Other Benefits.
(a) Health Insurance. Company agrees to provide health insurance
coverage on behalf of Employee at Company cost during the Term. Further,
Company agrees to provide health insurance coverage, on behalf of Employee,
following the end of his employment under this Agreement at Company cost until
the earlier of Employee's death or the date Employee attains age 65.
(b) Vacation. The Employee will be entitled to not less than twelve
(12) weeks of vacation per calendar year or such other amount, not less than
twelve (12} weeks, as may be approved from time to time by the Board of
Directors. Employee may carry over any unused vacation days. Upon
Employee's termination of employment, whether by expiration of this Agreement
or otherwise, Employee shall be entitled to payment for any carried over and
unused vacation days.
6. Confidentiality.
(a) As used in this section, the term "Confidential Information" means
any and all information regarding the organization, business or fm.ances of the
Company or any of its subsidiaries and affiliates, including, but not limited to, any
and all business plans and strategies, financial information, proposals, reports,
marketing plans and information, cost information, customer information,
-4-
customer lists, claims history and experience data, sales volume and other sales
statistics, personnel data, pricing information, and concepts and ideas.
(b) The Employee acknowledges and agrees that his employment by
the Company will afford him an opportunity to acquire Confidential Information
and that the misappropriation or disclosure of any Confidential Information would
cause irreparable harm to the Company and its subsidiaries and affiliates.
(c) During the Term and for a period of three (3) years thereafter, the
Employee will not use for the benefit of anyone other than the Company and its
subsidiaries and affiliates or disclose any of the Confidential Information for any
reason or purpose whatsoever except to authorized representatives of such
business entities or as directed or authorized by the Company.
(d) Upon ternunation of this Agreement, the Employee will
immediately surrender to the owner thereof all documents (other than documents
created by him) in his possession, custody or control embodying the Confidential
Information or any part thereof and will not thereafter remove the same from the
premises on which it is located.
(e) The provisions of this Section 5 shall survive termination of this
Agreement for any reason.
7. Non-Compete Obligation. Employee agrees that during the Term of this
Agreement and for a period of three (3) years after the end of the Term; or any extension thereof,
Employee shall not, directly or indirectly, engage (as principal, partner, director, officer, agent,
employee, or owner, with or without compensation) i.n any line of business that the Company is
involved within one hundred (100) miles of the main office of the Company. Notwithstanding
the above, the provisions of this Section 7 shall not apply to Employee's ownership interest in
Infrastructure Technology Contractors, incorporated. ~ '
Employee shall not entice or solicit, directly or indirectly, any other executives or key
management personnel of the Company (or any subsidiary) to work with Employee or any entity
with which Employee has affiliated for a period of three (3) years after the end of the Term, or
any extension thereof. Employee shall also not entice or solicit, directly or indirectly, any client
or customer of the Company (or any subsidiary) for any competitor or in any competitive activity
for a period of three (3) years after the end of the initial Term or any extension thereof.
8. Remedies. Employee acknowledges and agrees that the remedy at law of the
Company for a breach or threatened breach of any of the provisions of Sections 5 or 6 would be
inadequate and, in recognition of this fact, in the event of a breach or threatened breach by the
Employee of any of the provisions of Sections 5 or 6, it is agreed that, in addition to the remedy
at law, the Company will be entitled to, without posting any bond, and the Employee agrees not
-5-
to oppose any request of the Company for, equitable relief in the form of specific performance, a
temporary restraining order, a temporary or permanent injunction, or any other equitable
remedy which may then be available. Nothing herein contained will be construed as prohibiting
the Company from pursuing any other remedies available to them for such breach or threatened
breach.
9. Indemnification. The Company will indemnify the Employee, to the fullest extent
permitted under Pennsylvania and federal law, with respect to any threatened, pending or
completed legal or regulatory action, suit or proceeding brought against him by reason of the fact
that he is or was a director, officer, employee or agent of the Company. To the fullest extent
permitted by Pennsylvania and federal law, the Company will, in advance of final disposition,
pay any and all expenses incurred by the Employee in connection with any threatened,
pending or completed Iegal or regulatory action, suit or proceeding with respect to which he may
be entitled to indemnification hereunder. The Company will use their best efforts to obtain
insurance coverage for the Employee under a policy covering directors and officers thereof
against litigation, arbitrations and other Iegal and regulatory proceedings.
10. Notices. Any notice required or permtted to be given under this Agreement will,
to be effective hereunder, be given to the Company, in the case of notices given by the
Employee, and will, to be effective hereunder, be given by the Company, in the case of notices
~~ given to the Employee. Any such notice will be deemed properly given if in writing and if
mailed by registered or certified mail, postage prepaid with return receipt requested, to the
residence of the Employee, in the case of notices to the Employee, and to the main office of the
Company.
11. Waiver. No provision of this Agreement may be modified, waived, or discharged
unless such waiver, modification, or dischazge is agreed to in writing and signed by the parties.
No waiver by any party hereto at any time or any breach by the other party hereto of, or
compliance with, .any condition or provision of this Agreement to be performed by such, other
party will be deemed a waiver..of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.
12. Assignment. This Agreement is not assignable by~any party hereto, except by the
Company to any successor in interest to the respective businesses of the Company.
13. Entire Agreement. This Agreement contains the entire agreement of the parties
relating to the subject matter of this Agreement and supersedes any prior agreement of the
parties.
14. Validi The invalidity or unenforceability of any provisions of this Agreement
will not affect the validity or enforceability of any other provision of this Agreement, which will
remain in full force and effect.
-6-
I5. Applicable Law. Except to the extent preempted by federal law, this Agreement
will be governed by and construed in accordance with the domestic internal law of the
Commonwealth of Pennsylvania.
16. Headings. The headings of the sections and subsections of this Agreement are for
convenience only and will not control or affect the meaning or construction or limit the scope or
intent of any of the provisions of this Agreement.
. 17. Effective Date. This Agreement will become effective immediately upon the
execution and delivery of this Agreement by the parties hereto.
1 R. Withholding for Taxes. All amounts and benefits paid or provided hereunder will
be subject to withholding for taxes as required by law.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
BBEC, INC.
By:
(Vice) Preside
(SEAL)
EMPLOYEE
By:
Bruce K. Barcla
-7-
CERTIFICATE OF SERVICE
I hereby certify that a copy of the foregoing Motion for Judgment on the
Pleadings has been duly served upon the following counsel of record, by depositing the
same in the United States Mail, postage prepaid, in Lemoyne, Pennsylvania, on
June 25, 2010:
George B. Faller, Jr., Esquire
Martson Law Offices
10 East High Street
Carlisle, PA 17013
JOHNSON, DUFFIE, STEWART & WEIDNER
By: ~/v
J n R. Ninosky
CA ~ Al.
PRAECIPE FOR LISTING CASE FOR ARGUMENT
(Must be typewritten and submitted in duplicate)
TO THE PROTHONOTARY OF CUMBERLAND COUNTY:
Court.)
CAPTION OF CASE
(entire caption must be stated in full)
BRUCE K. BARCLAY,
Plaintiff
BBEC, Inc.
vs.
Defendant
~ u~
No. 10-2662, Civil Term
1. State matter to be argued (i.e., plaintiffs motion for new trial, defendant's demurrer to
complaint, etc.):
Plaintiff s Motion for Judgment on the Pleadings
2. Identify counsel who will argue cases:
(a) for plaintiffs:
John R. Ninosky, Esquire, Johnson Duffle, P.O. Box 109, Lemoyne, PA 17403
(Name and Address)
(b) for defendants:
George B. Faller, Jr., Esquire, Martson Law Offices, 10 East High Street
Carlisle, PA 17013
(Name and Address)
3. I will notify all parties in writing within two days that this case has been listed for argument.
4. Argument Court Date:
August 18, 2010
::,
,~
f-i~
-~,~i
-,
:C~
~~
:a
i"~-
Sig ature
John R. Ninoskv
Print your name
Attorney for Plaintiff Bruce K. Barclay
Date: June 25, 2010
INSTRUCTIONS:
1. Two copies of all briefs must be filed with the COURT ADMINISTRATOR
(not the Prothonotary) before argument.
2. The moving party shall file and serve their brief 12 days prior to argument.
3. The responding party shall file their brief 5 days prior to argument.
4. If argument is continued new briefs must be filed with the COURT
ADMINISTRATOR (not the Prothonotary) after the case is relisted.
:404723
(List the within matter for the next Argument
c7 a
C o
._~____~_ _~__ _
v t~~
- ~-
.~..
{- ,
~
r~; : CX3
`~ `~, ~_ ~
~' ~., rU
..
r !~..
r
Johnson, Duffie, Stewart & Weidner
By: John R. Ninosky
I.D. No. 78000
Elizabeth D. Snover
I.D. No. 200997
301 Market Street ~ P. O. Box 109
Lemoyne, PA 17043-0109
(717) 761-4540
BRUCE K. BARCLAY,
Plaintiff
v.
BBEC, INC.,
Defendants
1r far 'r ~;r?+f
2~i~ J~~ 22 i' :~ ~+;
t",-.`l; i;~'~~L,`,~'~~ `I`rk.
Attorney for Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 10-2662
CIVIL ACTION -LAW
DECLARATORY JUDGMENT REQUESTED
JURY TRIAL DEMANDED
PRAECIPE TO REMOVE
TO THE PROTHONOTARY:
Please remove Plaintiffs Motion for Judgment on the Pleadings from the August 18,
2010 Argument Court list. This matter will be re-listed for October 6, 2010 Argument Court list
at the appropriate time.
Respectfully submitted,
JOHNSON FFIE, STEWART & WEIDNER
By:
Jo n R. Nin sky, Esquire
A orney I.D. No. 78000
301 Market Street
P. O. Box 109
Lemoyne, PA 17043-0109
Telephone (717) 761-4540
Date: July 21, 2010 Attorneys for Plaintiff
. .~ ,
CERTIFICATE OF SERVICE
I hereby certify that a copy of the foregoing Praecipe to Remove has been duly
served upon the following counsel of record, by depositing the same in the United
States Mail, postage prepaid, in Lemoyne, Pennsylvania, on July 21, 2010:
George °B. Fa#ler, Jr., Esquire
Martson Law Offices
10 East High Street
Carlisle, PA 17013
JOHNSON, DUFFIE, STEWART & WEIDNER
By:
Jo n R. Nmosky
2
ca f A~
PRAECIPE FOR LISTING CASE FOR ARGUMENT
(Must be typewritten and submitted in duplicate)
TO THE PROTHONOTARY OF CUMBERLAND COUNTY:
Court.)
CAPTION OF CASE
(entire caption must be stated in full)
BRUCE K. BARCLAY,
Plaintiff
VS.
BBEC, Inc.
Defendant
(List the within matter for the next Argument
cn
Q t~,
~ ~:..
~ ~:~
~ --
i _ ~ =y
cy ..
~~ ~ ~_..
~_
No. 10-2662, Civil Term
1. State matter to be argued (i.e., plaintiffs motion for new trial, defendants demurrer to
complaint, etc.):
Plaintiffs Motion for Judgment on the Pleadings
2. Identify counsel who will argue cases:
(a) for plaintiffs:
John R. Ninosky, Esquire, Johnson Duffle, P.O. Box 109, Lemoyne, PA 17403
(Name and Address)
(b) for defendants:
George B. Faller, Jr., Esquire, Manson Law Offices, 10 East High Street
Carlisle, PA 17013
(Name and Address)
3. I will notify all parties in writing within two days that this case has been listed for argument.
4. Argument Court Date: October 6, 2010
Date: August 2, 2010
Si ature
John R. Ninoskv
Print your name
Attorney for Plaintiff Bruce K. Barclay
INSTRUCTIONS:
1. Two copies of all briefs must be filed with the COURT ADMINISTRATOR
(not the Prothonotary) before argument.
2. The moving party shall file and serve their brief 12 days prior to argument.
3. The responding party shall file their brief 5 days prior to argument.
4. N argument is continued new briefs must be filed with the COURT
ADMINISTRATOR (not the Prothonotary) after the case is relisted.
:404723
._
_,.~
_~
~,T'
-~ , ', a ;
,)
F.AFILESVClients\13835 BBEC1,13835.2\13835 2 Motion for Judgment on Pleadings
1&vised 9/20/10 II 12AM
George B. Faller, Jr., Esquire
I.D. No. 49813
R. Christopher VanLandingham
I.D. No. 307424
MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER
MARTSON LAW OFFICES
10 East High Street
Carlisle, PA 17013
(717) 243-3341
Attorneys for Defendant
i vrr
s ,„ p
???\ 1?„'S t?,. cat
BRUCE K. BARCLAY,
Plaintiff,
V.
BBEC, INC..,
Defendant.
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 10-2662
CIVIL ACTION - LAW
: JURY TRIAL DEMANDED
DEFENDANT'S MOTION FOR JUDGMENT ON THE PLEADINGS
AND NOW, comes the Defendant, BBEC, Inc., by and through its attorneys, MARTSON
DEARDORFF WILLIAMS OTTO GILROY & FALLER, and moves as follows:
1. On December 15, 2000, Plaintiff entered into an employment agreement (hereinafter
"Agreement") with Defendant, whereby :Plaintiff agreed to work for Defendant for a term ending on
December 31, 2020 (hereinafter "Term"). A true and correct copy of the Agreement was attached
to Plaintiff's Complaint and hereto as Exhibit "A."
2. Under Subsection 5(a) of the Agreement, Defendant agreed to "provide health insurance
coverage on behalf of Employee at Company cost during the Term. Further, Company agrees to
provide health insurance coverage, on behalf of Employee, following the end of his employment
under this Agreement at Company cost until the earlier of Employee's death or the date Employee
attains age 65."
3. On April 9, 2008 Plaintiff voluntarily terminated his employment with Defendant,
before expiration of the Term.
4. Under Subsection 3(b) of the Agreement, "[i]f the Employee voluntarily terminates
employment-all rights of the Employee hereunder will cease as of the date of such termination..."
5. Defendant ceased providing health insurance coverage to Plaintiff following Plaintiff's
voluntary termination, in conformance with Subsection 3(b) of the Agreement.
6. On April 20, 2010, Plaintiff filed a Complaint seeking a Declaration by this Court that
Defendant is obligated to provide health insurance coverage to Plaintiff and a Judgment for damages
representing the costs Plaintiff has allegedly incurred obtaining and maintaining his own health
insurance coverage.
7. The Plaintiff's argument rests solely on a reading of Subsection 5(a) providing for health
insurance coverage following the termination of his employment.
8. Plaintiff incorrectly claims that Subsection 5(a) of the Agreement requires Defendant
to continue to provide health insurance coverage even following Plaintiff's voluntary termination.
9. It is well settled by the courts that the intention of the parties to an agreement must be
considered by a reading of the entire agreement and not simply by reading individual sections. Alloy
Manufactoring Company Employees Trust v. Minnotte, 411 Pa. 492, 496, 192 A. 2d 394, 396 (Pa.
1963). When clauses to a contract appear to be in conflict they should be construed, "if possible, as
consistent with one another." Flatley by Flatley v. Penman, 429 Pa.Super. 517, 521, 632 A.2d 1342,
1344 (Pa.Super. 1993). "Moreover, where specific or exact terms seem to conflict with broader or
more general terms, the [specific] terms are more likely to express the meaning of the parties with
respect to the situation than the general language." PBS Coal, Inc. v. Hardhat Mining, Inc., 429
Pa.Super. 372, 378, 632 A.2d 903, 906 (Pa.Super 1993).
10. Reading the Agreement as a whole, with the clauses read as consistent with one another
where possible, as the Court must, clearly demonstrates that the intent of the parties was for all
rights under the Agreement, including the right to health insurance coverage, to cease upon
Employee's voluntary termination, and for Defendant to be obligated to continue providing health
insurance coverage to the Plaintiff only if Plaintiff is involuntarily terminated for cause under
Subsection 3(a), involuntarily terminated for a disability under Subsection 3(c), or if Plaintiff
continues employment until the end of the Term.
11. "A Motion for Judgment on the Pleadings will be granted only where, on the facts
averred, the law says with certainty no recovery is possible." Piehl v. City ofPhiladelphia, 987 A.2d
146 (Pa. 2009).
12. On the facts averred in the present case, the law says with certainty that no recovery
by Plaintiff is possible.
WHEREFORE, Defendant requests this Honorable Court enter a Judgment on the Pleadings
in favor of Defendant and dismiss Plaintiff's Complaint with prejudice.
Respectfully Submitted,
MARTSON,L^ OFF
By: -
Geor al r, Esquire q s
I.D. No. 49813 'f
R. Christopher VanLandingham
I.D. No. 307424
10 East High Street
Carlisle, PA 17013
(717) 243-3341
Attorneys for Defendant
Date: September 20, 2010
LA " "'
EMPLOYMENT AGREEMENT
THIS AGREEMENT ("Agreement") made as of the day of December 2000,
between BBEC, INC., a Pennsylvania business corporation (the "Company"), and BRUCE K.
BARCLAY, an individual (the "Employee").
WITNESSETH:
WHEREAS, Employee founded BBEC, Inc. and has served and currently serves as
President and Chief Executive Officer of BBEC and is a key employee of the Company; and
WHEREAS, Employee is willing to sell his entire interest in the Company to ?n
Employee Stock Ownership Plan (the "ESOP") which will inure the benefit of all eligible
employees of the Company; and
WHEREAS, Employee has indicated his willingness to remain employed by the
Company; and
WHEREAS, a condition to the ESOP's third party financing for acquiring Employee's
stock is that Employee remain an employee and continue to serve as President of the Company;
and
WHEREAS, it is important to the continuing success of the Company that Employee's
services be retained and that to protect the interests of the Company, Employee, in consideration
of the benefits to be provided herein, agree to be subject to certain confidentiality and non-
competition provisions.
NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, agree as
follows:
I. Employment. Company hereby agrees to employ the Employee, and the
Employee hereby accepts employment with the Company, on the terms and conditions set forth
in this Agreement.
2. Duties of Employee. The Employee will perform and discharge well and
faithfully such duties and will be employed as President and Chief Executive Officer, and will
hold such other titles as may be given to him from time to time by the Board of Directors.
3. Term of Employment. The Employee's employment under this Agreement will
be for a period commencing upon the date of this Agreement and ending on December 31, 2020,
hereinafter defined as (the "Term', unless the Employee's employment is sooner terminated in
accordance with one of the provisions of this Section 3; provided, however, the term of this
Agreement will automatically renew for a one-year period commencing on the twentieth
368463.4
anniversary date of the original term, unless either party gives written notice of nonrenewal to the
other party no later than sixty (60) days prior to the end of the original term. The term of this
Agreement shall automatically renew for additional one-year periods thereafter unless either
party gives written notice of no renewal to the other party no later than sixty (60) days prior to
the end of the one-year renewal term.
(a) Termination for Cause. The Employee's employment under this
Agreement may be terminated at any time during the Term for "Cause" (as herein
defined), by action of the Board of Directors of the Company, upon giving written
notice of such termination to the Employee. As used in this .Agreement, "Cause"
means any of the following events:
(i) the Employee is convicted of or enters a plea of
guilty or nolo contendere to a felony, a crime of falsehood, or a
crime involving fraud or moral turpitude, or the actual
incarceration of the Employee for a period of ten (10) consecutive
days; or
(ii) the Employee has, in the reasonable opinion of the
Board of Directors, committed an intentional act of fraud,
embezzlement or theft in connection with the Employee's duties in
the course of his employment or has caused intentional damage to
property of the Company or has intentionally and wrongfully
disclosed Confidential Information.
If the Employee's employment is terminated under the provisions of this
subsection, then all rights of the Employee under Section 4 will cease as of the
effective date of such termination.
(b) Voluntary Termination, Retirement or Death. If the Employee
voluntarily terminates employment, retires or dies, the Employee's employment
under this Agreement will be deemed terminated as of the date of the Employee's
voluntary termination, retirement or death, and all rights of the Employee
hereunder will cease as of the date of such termination and any benefits payable to
the Employee will be determined in accordance with the pension, welfare, fringe
benefit, expense reimbursement, salary deferral and insurance programs of the
Company then in effect.
(c) Disability. If the Employee is incapacitated by accident, sickness,
or otherwise so as to render the Employee mentally or physically incapable of
performing the essential duties required of the Employee under Section 2,
notwithstanding reasonable accommodation, for a continuous period of eighteen
(18) months, then, upon the expiration of such period or at any time thereafter, by
-2-
action of the Board of Directors of the Company, the Employee's employment
under this Agreement may be terminated immediately upon giving the Employee
notice to that effect. If the Employee's employment is terminated under the
provisions of this subsection 3(b), then all rights of the Employee under Section 4
will cease as of the last business day of the week in which such termination
occurs, and the Employee will thereafter be entitled to the benefits to which he is
entitled under any disability plan of the Company, if any, in which he is then a
participant.
4. Term Compensation and Related Matters.
(a) Salary. For services , performed by the Employee under this
Agreement, the Company will pay the Employee a salary, in the aggregate, during
the Term, at the annualized rate of Two Hundred Forty Thousand Dollars
($240,000.00), payable at the same times as salaries are payable to other
employees of the Company. Employee's base compensation shall be adjusted
annually by four percent (4%) over the Term.
(b) Bonus. Employee may also be eligible to receive an annual bonus
as a participant under the Company's Incentive Bonus Program which the
Company shall maintain for its key executive employees as selected by the Board
of Directors. The incentive criteria under the Incentive Bonus Program are to be
determined within the sole discretion of the Board of Directors and the Program in
effect as of the effective date of this Agreement is described on Appendix "A"
attached hereto.
(c) Pension and Welfare Benefits. The Company will provide the
Employee, during the Term., with pension and welfare benefits (within the
meaning of Section 3 of the Employee Retirement Income Security Act of 1974,
as amended C ERISA' )) in the aggregate not less favorable than those received by
other employees of the Company.
(d) Supplemental Life Insurance. Company agrees to pay the
premium cost of all life insurance which Employee maintains as of the effective
date of this Agreement.
(e) Automobile. Company agrees to provide for Employee during the
Term the use of an automobile, model and make determined by the Board of
Directors and to reimburse Employee for all costs associated with the vehicle,
including fuel, mileage, and maintenance.
(f) Expense Reimbursement. The Employee will be entitled to
reimbursement of all expenses incurred by him in the discharge of his duties in
the furtherance of the business of the Company.
(g) Technology. Company agrees to pay the costs of technology
connections and equipment required by Employee in order that Employee can
fulfill his responsibilities as President and Chief Executive Officer, including
necessary links and equipment at Employee's office and residence locations. The
Company will be responsible for updating such connections and equipment so that
it is compatible with the Company's equipment. Upon the termination of this
Agreement any equipment installed as of such date shall be deemed the property
of the Employee.
(h) Incidental Benefits. To avoid interference with Employee's
significant responsibilities as President and Chief Executive Officer, Company
agrees that in lieu of paying Employee an additional $10,000 toward his base
salary, the Company will pay for the incidental expenses of Employee, as agreed
between Employee and the Company, provided however, said amount to be
adjusted as per base salary adjustments pursuant to Section 4(a).
5. Other Benefits.
(a) Health Insurance. Company agrees to provide health insurance
coverage on behalf of Employee at Company cost during the Term. Further,
Company agrees to provide health insurance coverage, on behalf of Employee,
following the end of his employment under this Agreement at Company cost until
the earlier of Employee's death or the date Employee attains age 65.
(b) Vacation. The Employee will be entitled to not less than twelve
(12) weeks of vacation per calendar year or such other amount, not less than
twelve (12) weeks, as may be approved from time to time by the Board of
Directors. Employee may carry over any unused vacation days. Upon
Employee's termination of employment, whether by expiration of this Agreement
or otherwise, Employee shall be entitled to payment for any carried over and
unused vacation days.
6. Confidentiality.
(a) As used in this section, the term "Confidential Information" means
any and all information regarding the organization, business or finances of the
Company or any of its subsidiaries and affiliates, including, but not limited to, any
and all business plans and strategies, financial information, proposals, reports,
marketing plans and information, cost information, customer information,
-4-
customer lists, claims history and experience data, sales volume and other sales
statistics, personnel data, pricing information, and concepts and ideas.
(b) The Employee acknowledges and agrees that his employment by
the Company will afford him an opportunity to acquire Confidential Information
and that the misappropriation or disclosure of any Confidential Information would
cause irreparable harm to the Company and its subsidiaries and affiliates.
(c) During the Term and for a period of three (3) years thereafter, the
Employee will not use for the benefit of anyone other than the Company and its
subsidiaries and affiliates or disclose any of the Confidential Information for any
reason or purpose whatsoever except to authorized representatives of such
business entities or as directed or authorized by the Company.
(d) Upon termination of this Agreement, the Employee will.
immediately surrender to the owner thereof all documents (other than documents
created by him) in his possession, custody or control embodying the Confidential
Information or any part thereof and will not thereafter remove the same from the
premises on which it is located.
(e) The provisions of this Section 5 shall survive termination of this
Agreement for any reason.
7. Non-Compete Obligation. Employee agrees that during the Term of this
Agreement and for a period of three (3) years after the end of the Term, or any extension thereof,
Employee shall not, directly or indirectly, engage (as principal, partner, director, officer, agent,
employee, or owner, with or without compensation) in any line of business that the Company is
involved within one hundred (100) miles of the main office of the Company. Notwithstanding
the above, the provisions of this Section 7 shall not apply to Employee's 'ownership interest in
Infrastructure Technology Contractors, Incorporated.
Employee shall not entice or solicit, directly or indirectly, any other executives or key
management personnel of the Company (or any subsidiary) to work with Employee or any entity
with which Employee has affiliated for a period of three (3) years after the end of the Term, or
any extension thereof. Employee shall also not entice or solicit, directly or indirectly, any client
or customer of the Company (or any subsidiary) for any competitor or in any competitive activity
for a period of three (3) years after the end of the initial Term or any extension thereof
8. Remedies. Employee acknowledges and agrees that the remedy at law of the
Company for a breach or threatened breach of any of the provisions of Sections 5 or 6 would be
inadequate and, in recognition of this fact, in the event of a breach or threatened breach by the
Employee of any of the provisions of Sections 5 or 6, it is agreed that, in addition to the remedy
at law, the Company will be entitled to, without posting any bond, and the Employee agrees not
-5-
to oppose any request of the Company for, equitable relief in the form of specific performance, a
temporary restraining order, a temporary or permanent injunction, or any other equitable
remedy which may then be available. Nothing herein contained will be construed as prohibiting
the Company from pursuing any other remedies available to them for such breach or threatened
breach.
9. Indemnification. The Company will indemnify the Employee, to the fullest extent
permitted under Pennsylvania and federal law, with respect to any threatened, pending or
completed legal or regulatory action, suit or proceeding brought against him by reason of the fact
that he is or was a director, officer, employee or agent of the Company. To the fullest extent
permitted by Pennsylvania and federal law, the Company will, in advance of final disposition,
pay any and all expenses incurred by the Employee in connection with any threatened,
pending or completed legal or regulatory action, suit or proceeding with respect to which he may
be entitled to indemnification hereunder. The Company will use their best efforts to obtain
insurance coverage for the Employee under a policy covering directors and officers thereof
against litigation, arbitrations and other legal and regulatory proceedings.
10. Notices. Any notice required or permitted to be given under this Agreement will,-
to be effective hereunder, be given to the Company, in the case of notices given by the
Employee, and will, to be effective hereunder, be given by the Company, in the case of notices
given to the Employee. Any such notice will be deemed properly given if in writing and if
mailed by registered or certified mail, postage prepaid with return receipt requested, to the
residence of the Employee, in the case of notices to the Employee, and to the main office of the
Company.
11. Waiver. No provision of this Agreement may be modified, waived, or discharged
unless such waiver, modification, or discharge is agreed to in writing and signed by the parties.
No waiver by any party hereto at any time or any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by such other
party will be. deemed a waiver of similar or dissimilar provisions or conditions at the same or at
any prior or subsequent time.
12. Assignment. This Agreement is not assignable by any party hereto, except by the
Company to any successor in interest to the respective businesses of the Company.
13. Entire Agreement. This Agreement contains the entire agreement of the parties
relating to the subject matter of this Agreement and supersedes any prior agreement of the
parties.
14. Validi . The invalidity or unenforceability of any provisions of this Agreement
will not affect the validity or enforceability of any other provision of this Agreement, which will
remain in full force and effect.
-6-
1 5. Applicable Law. Except to the extent preempted by federal law, this Agreement
will be governed by and construed in accordance with the domestic internal law of the
Commonwealth of Pennsylvania.
16. Headines. The headings of the sections and subsections of this Agreement are for
convenience only and will not control or affect the meaning or construction or limit the scope or
intent of any of the provisions of this Agreement.
17. Effective Date. This Agreement will become effective immediately upon the
execution and delivery of this Agreement by the parties hereto.
18. Withholding for Taxes. All amounts and benefits paid or provided hereunder will
be subject to withholding for taxes as required by law.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
BBEC, INC.
By:
(Vice) Preside
(SEAL)
EMPLOYEE
By: Bruce K. Barcla
-7-
BBEC, INC.
MANAGEMENT INCENTIVE BONUS PLAN
BBEC, Inc. shall maintain, as an incentive to its key management employees to increase
the profitability of BBEC, Inc. and to enhance shareholder value, a management incentive bonus
plan. Those employees eligible to participate in the plan shall be identified and selected by the
Board of Directors on an annual basis.
Participants will qualify for payment of a bonus if provided the following threshold under
(1) below has been satisfied:
(1) Pre-tax profits of the Corporation must be an amount which is at least
equal to 15% times the ESOP valuation of the Corporation effective as of
the beginning of the plan year.
(2) Provided the minimum threshold has been satisfied, an amount equal to
15% but not greater than 20% of pre-tax profits in excess of the threshold
amount, the exact percentage determined by the Board of Directors
annually, shall be set aside to the bonus pool.
(3) The Board of Directors shall determine the allocable bonus for each
eligible participant out of the bonus pool.
368483.4
Appendix "A"
CERTIFICATE OF SERVICE
I, Nichole L. Myers, an authorized agent of Martson Deardorff Williams Otto Gilroy &
Faller, hereby certify that a copy of the foregoing Motion was served this date by depositing same
in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows:
John R. Ninosky, Esquire
JOHNSON, DUFFIE, STEWART & WEIDNER
301 Market Street
P.O. Box 109
Lemoyne, PA 17043-0103
MARTSON LAW OFFICES
Nichole L. Myers
Ten East High Street
Carlisle, PA 17013
(717) 243-3341
Dated: September 20, 2010
F:\FILPS\Clients\13835 BBEC\13835.2\13835.2.res1
Revised: 9/20/10 10 38AM
FILED-OFFICc
OF THE PTi, J HIONOTAR
George B. Faller, Jr., Esquire ,
I.D. No. 49813 2010 S E P ? 0 All 11: 0
R. Christopher VanLandingham
I.D.307424 ,^ t jX 4_ 1iD CCUT
3, ^
MARTSON DEARDORFF WILLIAMS OTTO GILROY & FALLER k„ 1K `tr 1 ?t `?'
MARTSON LAW OFFICES
10 East High Street
Carlisle, PA 17013
(717) 243-3341
Attorneys for Defendant
BRUCE K. BARCLAY,
Plaintiff,
V.
BBEC, INC.,
Defendant
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 10-2662
CIVIL ACTION - LAW
JURY TRIAL DEMANDED
DEFENDANT'S RESPONSE TO PLAINTIFF'S MOTION FOR JUDGMENT
ON THE PLEADINGS
AND NOW, comes the Defendant BBEC, Inc., and hereby responds to Plaintiff's Motion for
Judgment on the Pleadings as follows:
Admitted.
2. Denied as stated. To the contrary, Plaintiff's entitlement to benefits following his
voluntary termination and retirement is governed by Paragraph 3(b) of the Agreement, not Section
5(a). It is admitted, however, that the matter is ripe for disposition as it is simply a legal
interpretation of the contract.
3-4. Admitted.
5. It is admitted that the Motion has accurately quoted Paragraph 5(a).
6-8. Admitted.
9. It is admitted that this was Mr. Barclay's position. Mr. Barclay's position is incorrect,
however, as it is contrary to Paragraph 3(b).
10-21. Admitted.
22. Denied as stated. To the contrary, Paragraph 3(b) clearly terminates all rights of
employee when he voluntarily terminates or retires from employment.
23. Denied. To the contrary, Paragraph 3(b) clearly terminates all of employee's rights
to health insurance.
24. It is admitted that the Motion has accurately quoted Paragraph 3 (b) of the Agreement.
25. Denied as stated. To the contrary, the Court is not being asked to determine what
Section 3(b) "appears to contemplate" regarding any other type of post employment benefits other
than health insurance.
26. Denied. To the contrary, Plaintiff is not entitled to continued health insurance.
27. Denied as stated. Plaintiff's health insurance benefits were clearly terminated by his
voluntary resignation or retirement.
28. Denied as stated. The present motion has nothing to do with Paragraph 3(a).
29. Admitted that the Motion has accurately quoted Paragraph 3(a).
30. Denied as stated. The present motion has nothing to do with Paragraph 3(a).
31. The averments of this paragraph are denied as irrelevant. The instant motion deals
only with Plaintiffs alleged entitlement to continued health insurance benefits which have been
properly denied.
32. Denied as stated. To the contrary, the Court is simply asked to determine whether
or not the agreement clearly provides for continued health insurance benefits after voluntary
termination or retirement.
33. Denied, the Agreement is a document which speaks for itself.
34. Denied. To the contrary, Paragraph 3(b) clearly indicates that Plaintiffs right to
health insurance benefits ceased upon his voluntary resignation or termination.
35. Admitted that BBEC, Inc., will ask the Court to use Section 3(b) to terminate his
health insurance coverage as of the date of his voluntary termination or retirement. It is denied that
BBEC, Inc., is attempting to deny Mr. Barclay any other rights afforded him under the agreement.
36-39. The averments of these paragraphs are conclusions of law to which no response is
required and the averments are, therefore, deemed denied.
40. The averments of these paragraphs are conclusions of law to which no response is
required and the averments are, therefore, deemed denied. By way of further response, the
Agreement is a document which speaks for itself. Paragraph 3(b) of the Agreement clearly
terminates Plaintiff's right to continued health insurance coverage.
41-42. Denied. To the contrary, the Agreement by its own words ceases Mr. Barclay's rights
to health insurance benefits as of the date he voluntarily terminated or retired from his employment.
WHEREFORE, Defendant BBEC, Inc., requests that this Court deny Plaintiff s Motion for
Judgment on the Pleadings and grant Defendant's Motion for Judgment on the Pleadings.
MARTSON LAW OFFICES
By q,, ? ?,7 / -
Ge e B. Faller, Jr., Esquir
I.D. Number 49813
R. Christopher VanLandingham
I.D. No. 307424
10 East High Street
Carlisle, PA 17013
(717) 243-3341
Attorneys for Defendant BBEC, Inc.
Date: September 20, 2010
CERTIFICATE OF SERVICE
I, Nichole L. Myers, an authorized agent of Martson Deardorff Williams Otto Gilroy &
Faller, hereby certify that a copy of the foregoing Response was served this date by depositing same
in the Post Office at Carlisle, PA, first class mail, postage prepaid, addressed as follows:
John R. Ninosky, Esquire
JOHNSON, DUFFIE, STEWART & WEIDNER
301 Market Street
P.O. Box 109
Lemoyne, PA 17043-0103
MARTSON LAW OFFICES
By Y'016 i-;r?
Nichole L. Myers
Ten East High Street
Carlisle, PA 17013
(717) 243-3341
Dated: September 20, 2010
PRAECIPE FOR LISTING CASE FOR ARGUMENT
(Must be typewritten and submitted in triplicate)
TO THE PROTHONOTARY OF CUMBERLAND COUNTY: (List the within matter for the next
Argument Court.)
----- - - - - - ----- - ---- - - - ------- - ---------- - -------- - -------- - ---------------- - --
-
-
-
-
-
-
----------------
CAPTION OF CASE -
(entire caption must be stated in full)
e '
'rt
BRUCE K. BARCLAY
"
VS. ci?t
? rw
-
BBEC, INC. r C
.)
c')
C--)
' C3
No. 10-2662 Civil Gi C'
M
1. State matter to be argued (i.e., plaintiffs motion for new trial, defendant's demurrer to.-:,. r-O
complaint, etc.):
Defendant's Motion for Judgment on the Pleadings
2. Identify all counsel who will argue cases:
(a) for plaintiffs:
John R. Ninosky, Esquire, Johnson Duffle, P.O. Box 109, Lemoyne, PA 17403
(Name and Address)
(b) for defendants:
George B. Faller, Jr., Esquire, MARTSON LAW OFFICES, 10 East High Street
(Name and Address)
Carlisle, PA 17013
3. 1 will notify all parties in writing within two days that this case has been listed for
argument.
4. Argument Court Date: December 15, 2010
Print your name
Defendant
9120110 Attorney for
Date:
INSTRUCTIONS:
1. Original and two copies of all briefs must be filed with the COURT ADMINISTRATOR
(not the Prothonotary) before argument.
2. The moving party shall file and serve their brief 12 days prior to argument.
3. The responding party shall file their brief 5 days prior to argument.
4. If argument Is continued new briefs must be filed with the COURT
ADMINISTRATOR (not the Prothonotary) after the case is relisted.
Lyeorge ts. ratter, jr., t;squire
~ A,
F'Il.EC1-at: i" iCE
GI~' T'HE PFt0~'t~DPdQT~f;`~
X010 S£P 22 P~! 3~ ~~
"UMBERI.ANC COE1i~li`°
PEN~SYLI~A,~~il~
Johnson, Duffle, Stewart ~ Weidner
By: John R. Ninosky
I.D. No. 78000
Elizabeth D. Snover
I.D. No. 200997
301 Market Street ~ P. O. Box 109
Lemoyne, PA 17043-0109
(717) 761-4540
BRUCE K. BARCLAY,
Plaintiff
v.
BBEC, INC.,
Defendants
TO THE PROTHONOTARY:
Attorney for Plaintiff
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
NO. 10-2662
CIVIL ACTION -LAW
DECLARATORY JUDGMENT REQUESTED
JURY TRIAL DEMANDED
PRAECIPE TO REMOVE
Please remove PlaintifFs Motion for Judgment on the Pleadings from the October 6,
2010 Argument Court list. This matter will be re-listed for the December 15, 2010 Argument
Court list at the appropriate time.
Respectfully submitted,
Date: September 21, 2010
JOHNSON, UFFIE, STEWART 8~ WEIDNER
By:
J n R. Ninosky, Esquire
Attomey I.D. No. 78000
301 Market Street
P. O. Box 109
Lemoyne, PA 17043-0109
Telephone (717) 761-4540
Attorneys for Plaintiff
CERTIFICATE OF SERVICE
I hereby certify that a copy of the foregoing Praecipe to Remove has been duly
served upon the following counsel of record, by depositing the same in the United
States Mail, postage prepaid, in Lemoyne, Pennsylvania, on September 21, 2010:
George B. Faller, Jr., Esquire
Martson Law Offices
10 East High Street
Carlisle, PA 17013
JOHNSON, DUFFIE, STEWART & WEIDNER
By:
John R. Nin sky
ca/aL
PRAECIPE FOR LISTING CASE FOR ARGUMENT
(Must be typewritten and submitted in duplicate)
TO THE PROTHONOTARY OF CUMBERLAND COUNTY: (List the within matter for the next Argument
Court.)
--- C o
CAPTION OF CASE 3 ~
(entire caption must be stated in full) ~~
~ ~~
BRUCE K. BARCLAY, ~
~~ ~
~ ~~
~~
Plaintiff ~~
~' ~ ca
n
c- ~ ~~
~"
BBEC, Inc. vs. ~~ c~ ~~
Defendant -~, ~~,, ~~
No. 10-2662, Civil Term ~
1. State matter to be argued (i.e., plaintiffs motion for new trial , defendant's demurrer to
complaint, etc.):
Plaintiffs Motion for Judgment on the Pleadings
2. Identify counsel who will argue cases:
(a) for plaintiffs:
John R. Ninosky, Esquire, Johnson Duffie, P.O. Box 109, Lemoyne, PA 17403
(Name and Address)
(b) for defendants:
George B. Faller, Jr., Esquire, Martson Law Offices, 10 East High Street
Carlisle, PA 17013
(Name and Address)
3. I will notify all parties in writing within two days that this case has been listed for argument.
4. Argument Court Date: December 15, 2010
Sign ure
Date: September 21, 2010
John R. Ninosky
Print your name
Attorney for Plaintiff Bruce K. Barclay
INSTRUCTIONS:
1. Two copies of all briefs must be filed with the COURT ADMINISTRATOR
(not the Prothonotary) before argument.
2. The moving party shall file and serve their brief 12 days prior to argument.
3. The responding party shall file their brief 5 days prior to argument.
4. ff argument is continued new briefs must be filed with the COURT
ADMINISTRATOR (not the Prothonotary) after the case is relisted.
:404723
h ,
JOHNSON, DUFFIE, STEWART & WEIDNER
By: John R. Ninosky
I.D. No. 78000
Elizabeth D. Snover
I.D. No. 200997
301 Market Street - P. O. Box 109
Lemoyne, PA 17043-0109
(717) 761-4540
_ FILED-OFFICE
C; T14E PPP i h+ti 0TAR',
1 SPEQ 27 PM 2: COP
P E S`fk VAIN! ;
Attorney for Plaintiff
BRUCE K. BARCLAY, IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
Plaintiff
NO. 10-2662
V.
CIVIL ACTION - LAW
BBEC, INC., DECLARATORY JUDGMENT REQUESTED
Defendants JURY TRIAL DEMANDED
RESPONSE TO BBEC INC.'S MOTION FOR JUDGMENT ON THE PLEADINGS
AND NOW, comes the Plaintiff, by and through his counsel, Johnson, Duffie, Stewart &
Weidner, P.C., who files this Response to BBEC, Inc.'s Motion for Judgment on the Pleadings
by respectfully stating the following:
1. Admitted. By way of further response, the Agreement attached to Plaintiff's
Complaint as Exhibit A is a document which speaks for itself.
2. Admitted. By way of further response, the Agreement attached to Plaintiff's
Complaint as Exhibit A is a document which speaks for itself.
3. Admitted. (See, Complaint % 9, Admitted in Answer 19)
4. Admitted. By way of further answer that provision states in full:
Voluntary Termination Retirement, or Death. If the Employee voluntarily
terminates employment, retires or dies, the Employee's employment under this
Agreement will be deemed terminated as of the date of the Employee's voluntary
termination, retirement or death and all rights of the Employee hereunder will
cease as of the date of such termination and any benefits payable to the
Employee will be determined in accordance with the pension, welfare, fringe
benefit, expense reimbursement, salary deferral and insurance programs of the
Company then in effect. (Exhibit A, Plaintiffs Complaint).
5. Admitted in part, denied in part. It is admitted that, after Barclay's voluntary
resignation, BBEC, Inc. ceased providing health insurance coverage. However, it is denied that
this action was in conformance with the Employment Agreement. As stated in his Complaint
and Motion for Judgment on the Pleadings, it is the position of Mr. Barclay that the Employment
Agreement when read as a whole, and particularly Subsection 5(a), requires BBEC, Inc. to
continue to provide health insurance coverage to Mr. Barclay at cost to BBEC, Inc. following the
end of his employment (including voluntary termination) with BBEC, Inc. and until Mr. Barclay
attains the age of 65 or dies. When read as a whole, Section 3(b) directs that, in the instance of
voluntary termination, Mr. Barclay is still entitled to post-employment benefits as determined by
the Company's benefit plans and insurance programs. As such, there is no apparent conflict
between Section 3(b) and Section 5(a) which provides for: "health insurance coverage on
behalf of Employee following the end of his employment under [the] Agreement."
6. Admitted.
2
7. Denied. Plaintiff's argument rests entirely on the Employment Agreement when
read as a whole.
8. Admitted in part, denied in part. It is admitted that Plaintiff claims that health
insurance benefits are due, which is the subject of his Complaint. However, it is denied that the
basis for Plaintiff's claim is incorrect. By way of further answer, see response to paragraph 5
above.
9. The averments in this paragraph are citations to case law to which no response
is required.
10. Denied. The averments in the paragraph are conclusions of law to which no
response is required. If a response is deemed required, the same are denied as stated. By
way of further answer, see response to paragraph 5 above as well as Plaintiff's Motion for
Judgment on the Pleadings.
11. The averments in this paragraph are citations to case law to which no response
is required.
12. Denied. The averments in the paragraph are conclusions of law to which no
response is required. If a response is deemed required, the same are denied as stated. By
way of further answer, see response to paragraph 5 above as well as Plaintiff's Motion for
Judgment on the Pleadings.
3
WHEREFORE, Plaintiff respectfully requests this Honorable Court to declare that, under
the terms of the Employment Agreement, BBEC, Inc. is obligated to provide health coverage to
Bruce K. Barclay until he attains the age of 65 or until his death and was required to do so after
his voluntary termination.
Respectfully submitted,
JOHNSON, DUFFIE, STEWART & WEIDNER
By: 4gz //Ajj
Jon R. mos y, Esquire
Attorney I.D. No. 78000
Elizabeth D. Snover, Esquire
Attorney I.D. No. 200997
301 Market Street
P. O. Box 109
Lemoyne, PA 17043-0109
Telephone (717) 761-4540
Attorneys for Plaintiff
Date: September 24, 2010
:415335
4
CERTIFICATE OF SERVICE
I hereby certify that a copy of the foregoing Response to BBEC, lnc.'s Motion for
Judgment on the Pleadings has been duly served upon the following counsel of record,
by depositing the same in the United States Mail, postage prepaid, in Lemoyne,
Pennsylvania, on September 24, 2010:
George B. Faller, Jr., Esquire
Martson Law Offices
10 East High Street
Carlisle, PA 17013
JOHNSON, DUFFIE, STEWART & WEIDNER
By: 44 GV/11/
Jo R. Ninosky
BRUCE K. BARCLAY,
Plaintiff,
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
V. l1 '"
No. 10-2662
BBEC, INC.,
Defendant JURY TRIAL DEMANDED' " a?
IN RE: PLAINTIFF'S MOTION FOR JUDGMENT ON THE PLEADINGSI&I
DEFENDANT'S MOTION FOR JUDGMENT ON THE PLEADINGS
BEFORE HESS, P.J. AND MASLAND, J.
ORDER OF COURT
AND NOW, this ?o day of January, 2011, upon consideration of the Plaintiff's Motion
for Judgment on the Pleadings, and Defendant's response thereto, and after oral argument by the
parties, the Plaintiffs Motion for Judgment on the Pleadings is GRANTED, and Defendant is
directed to abide by the terms and conditions of the Employment Agreement with regards to the
health insurance coverage of the Plaintiff by providing health insurance coverage in accordance
with the terms of the agreement, at company cost, until Plaintiff either attains the age of 65 or
dies.
It is further ordered, upon consideration of the Defendant's Motion for Judgment on the
Pleadings, and Plaintiffs response thereto, and after oral argument by the parties, the
Defendant's Motion for Judgment on the Pleadings is DENIED.
GeorcJe ?. %.ller,
John R. Ninos4, E"j,
BY THE COURT,
,,<,.. 4
Kevin/A. Hess, P.J.
noies Maw'
?I?o?ll
Da
BRUCE K. BARCLAY,
Plaintiff,
V.
BBEC, INC.,
Defendant
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
No. 10-2662
JURY TRIAL DEMANDED
IN RE: PLAINTIFF'S MOTION FOR JUDGMENT ON THE PLEADINGS and
DEFENDANT'S MOTION FOR JUDGMENT ON THE PLEADINGS
BEFORE HESS, P.J.
OPINION AND ORDER
HESS, P.J., January _, 2011
Before the court at this time are two motions. Plaintiff, Bruce K. Barclay, has filed a
Motion for Judgment on the Pleadings. (Plaintiff's Motion for Judgment on the Pleadings, filed
June 28, 2010). Defendant, BBEC, Inc., has also filed a Motion for Judgment on the Pleadings.
(Defendant's Motion for Judgment on the Pleadings, filed September 20, 2010). Both parties
filed briefs in support of, and in opposition to, the respective motions, and the case has been
argued.
The facts of the matter are not in dispute. On April 21, 2010, Plaintiff filed a Declaratory
Judgment and Breach of Contract action against Defendant regarding health insurance benefits
and coverage. (Complaint, filed April 21, 2010). On June 3, 2010, Defendant filed an Amended
Answer with New Matter to Plaintiff s Complaint. (Amended Answer, filed June 3, 2010). The
complaint arises out of an Employment Agreement signed by the parties, and a true and correct
copy of the agreement was attached to the complaint as Exhibit A. (Complaint, Ex. A, Admitted
in Amended Answer, ¶ 5). On December 15, 2000, the parties entered into an agreement
whereby Plaintiff Barclay was to become an employee of Defendant BBEC. (Complaint, 15;
2
Admitted in Amended Answer, ¶ 5). On April 9, 2008, Plaintiff Barclay voluntarily terminated
his employment with Defendant BBEC. (Complaint, ¶ 9; Admitted in Amended Answer, ¶ 9).
Subsequently, Barclay's health insurance with BBEC was terminated.
Voluntary termination of employment is addressed in Subsection 3(b) of the Employment
Agreement and provides as follows:
Voluntary Termination, Retirement, or Death. If the Employee voluntarily
terminates employment, retires or dies, the Employee's employment under this
Agreement will be deemed terminated as of the date of the Employee's voluntary
termination, retirement or death and all rights of the Employee hereunder will
cease as of the date of such termination and any benefits payable to the Employee
will be determined in accordance with the pension, welfare, fringe benefit,
expense reimbursement, salary deferral and insurance programs of the Company
then in effect.
(Complaint, 110; Admitted in Amended Answer, ¶ 10).
Also contained in the Employment Agreement at Subsection 5(a) is a health insurance
provision which provides as follows:
5. Other Benefits:
(a) Health Insurance. Company agrees to provide health insurance coverage on
behalf of Employee at Company cost during the Term. Further, Company agrees
to provide health insurance coverage, on behalf of Employee, following the end of
his employment under this Agreement at Company cost until the earlier of
Employee's death or the date Employee attains age 65.
(Complaint, ¶ 7; Admitted, but denying any inference or legal conclusion, in Amended Answer,
¶ 7).
Plaintiffs complaint alleges that Subsection 5(a) requires Defendant to continue to
provide health insurance coverage to Plaintiff following the end of his employment and until
Plaintiff attains the age of 65 or dies, with no distinction made for voluntary or involuntary
termination, and, therefore, the Defendant's termination of his health insurance was a violation
of the terms of the Employment Agreement. (Complaint, ¶ 9). Defendant contends that
3
Subsection 3(b), the voluntary termination provision, which provides that "all rights of the
employee hereunder will cease as of the date of such termination....," makes the termination of
Plaintiff's health insurance coverage proper, and Plaintiff is not entitled to health insurance
coverage because of his voluntary retirement. (Amended Answer, ¶ 10).
A Motion for Judgment on the Pleadings under Pennsylvania Rule of Civil Procedure
1034 may properly be granted in cases so free and clear of doubt that a "trial would be a fruitless
exercise." Bata v. Central-Penn Nat. Bank of Philadelphia, 423 Pa. 373, 378, 224 A.2d 174,
178 (1966). In ruling on such motions, a court must consider only the pleadings and any
documents properly attached thereto. Id. at 179. Judgment on the pleadings may not be entered
where material issues of fact are in dispute. Miami National Bank v. Willens, 410 Pa. 505, 507-
08, 190 A.2d 438, 439 (1963). Both parties agree that the Employment Agreement attached to
the complaint is a true and correct copy of the agreement between them, and, as a result, the
material facts are not in dispute. (Complaint, ¶ 5; Admitted in Amended Answer, ¶ 5). All that
remains, therefore, is the interpretation of the agreement and resultant obligations of the parties.
It is well-settled that the interpretation of a contract is a question of law. McMullen v.
Kutz, 603 Pa. 602, 609, 985 A.2d 769, 773 (2009). Indeed, the well-established principles of
contract law also guide a court's interpretation of employment agreements, just as any other
contract. Ferrer v. Trustees of University of Pennsylvania, 573 Pa. 310, 338, 825 A.2d 591,
608 (2002).
In Pennsylvania, certain principles of contract interpretation are well-settled. The
primary task of a court in interpreting a contract is to "ascertain the intent of the parties as
manifested by the language of the written instrument." Standard Venetian Blind Co. v. American
Empire Ins. Co., 503 Pa. 300, 305, 469 A.2d 563, 566 (1983). When ascertaining the intent of
4
the parties, a court should derive that intention from "the entire writing and not from detached
portions, it being necessary to consider every part thereof in order to resolve the meaning of a
particular part as well as that of the whole." In re Alloy Mfg. Co. Emp. Trust, 411 Pa. 492, 496,
192 A.2d 394, 396 (1963). Furthermore, if a contract is clear and unambiguous "neither oral
testimony nor prior written agreements or other writings are admissible to explain or vary the
terms of that contract." Ragnar Benson, Inc. v. Hempfield Tp. Mun. Authority, 2007 Pa. Super.
28, ¶ 16, 916 A.2d 1183, 1190 (citing Lenzi v. Hahnemann Univ.; 445 Pa. Super. 187, 664 A.2d
1375, 1379 (1995)). Where the contract is clear and unambiguous, therefore, its meaning is to be
determined from within the four corners of the document alone. Clairton Slag, Inc. v.
Department of General Services, 2 A.3d 765, 773 (Pa. Cmwlth. 2010) (citing East Crossroads
Ctr., Inc. v. Mellon-Stuart Co., 416 Pa. 229, 230, 205 A.2d 865, 866 (1965)).
The question of whether a contract is ambiguous is a question of law. Id. When a
contract is ambiguous, a court "may examine the surrounding circumstances to ascertain the
intent of the parties." Halpin v. LaSalle University, 432 Pa. Super. 476, 481, 639 A.2d 37,
39 (1994). Simply because parties to a contract disagree on its interpretation does not
unavoidably render the contract ambiguous; rather, when making the determination of whether a
contract is ambiguous or not, a court "must view the contract as a whole and not in discrete
units." Id. (citing O'Brien Energy Systems, Inc. v. American Employers' Ins. Co., 427 Pa. Super.
456, 461, 629 A.2d 957, 960 (1993)).
Finally, as noted above, the general rules of contract interpretation are also fully
applicable to employment agreements, just as any other contracts. Ferrer, 573 Pa. at 338. As a
result, "[t]erms in one section of the contract should not be interpreted in a manner which
nullifies other terms." Flatley by Flatley v. Penman, 429 Pa. Super. 517, 521, 632 A.2d 1342,
5
1344 (1993). Illogical interpretations, therefore, are to be rejected. Id. Furthermore, "specific
provisions ordinarily will be regarded as qualifying the meaning of broad general terms in
relation to a particular subject." In re Alloy Mfg. Co. Emp. Trust, 411 Pa. at 496.
The Employment Agreement in the instant case, when construed as a whole, is clear and
unambiguous. It is unnecessary, therefore, to refer to anything other than the agreement itself,
and, as a result, judgment on the pleadings is proper. The issue is whether the Employment
Agreement requires Defendant BBEC to continue to provide health insurance coverage, at
company cost, to Plaintiff Barclay until he attains the age of 65 or dies, despite his voluntary
termination. We hold that it does.
Subsection 5(a) unambiguously provides for ongoing health insurance for the Plaintiff
"following the end of his employment under this Agreement at Company cost until the earlier of
Employee's death or the date Employee attains age 65." (Complaint, ¶ 7; Admitted, but denying
any inference or legal conclusion, in Amended Answer, ¶ 7). Subsection 3(b) provides that in
the event of a voluntary termination by the employee, "all rights of the Employee hereunder will
cease as of the date of such termination and any benefits payable to the Employee will be
determined in accordance with the. . . insurance programs of the Company then in effect."
(Complaint, ¶ 10; Admitted in Amended Answer, 110) (emphasis added). It is clear, therefore,
that Subsection 3(b), the voluntary termination provision, separates out from all rights under the
contract, those rights related to insurance benefits. Those "benefits payable to the Employee"
which are "determined in accordance with the...insurance programs of the Company then in
effect" are separate and distinct from "all rights of the Employee hereunder," such as the right to
a salary (Subsection 4(a)), or the right to a company automobile (Subsection 4(e)). Viewing the
clauses together, and indeed, viewing the contract as a whole as we must, it is clear that the
6
intent of the parties at the time the Employment Agreement was signed was to provide health
insurance at company cost, to Plaintiff, after his voluntary termination, and until he attains the
age of 65 or dies.
Defendant's interpretation would mean that a voluntary termination of employment by
Plaintiff would result in fewer benefits than would an involuntary termination for cause. Indeed,
Defendant argues throughout its brief that "[w]hile an employee who was involuntarily
terminated either for cause or for disability, would maintain his rights to health insurance
coverage as provided under Section 5 of the Agreement..." an employee who voluntarily leaves
the employ of Defendant, even under good terms, is to lose his health insurance coverage.' We
reject, as we must, this illogical interpretation of the contract. See Flatley by Flatley, 632 A.2d at
1344.
Termination for cause is defined in Subsection 3(a) of the Employment Agreement, and
provides as follows:
(i) the Employee is convicted of or enters a plea of guilty or nolo contendere to a
felony, a crime of falsehood, or a crime involving fraud or moral turpitude, or the
actual incarceration of the Employee for a period of ten (10) consecutive days; or
(ii) the Employee has, in the reasonable opinion of the Board of Directors,
committed an intentional act of fraud, embezzlement or theft in connection with
the Employee's duties in the course of his employment or has caused intentional
damage to property of the Company or has intentionally and wrongfully disclosed
Confidential Information.
(Complaint, Ex. A, Admitted in Amended Answer, ¶ 5). We decline to accept an interpretation
that would provide for the continuing health insurance coverage of an employee discharged for
embezzlement or theft but deny the same benefit to an employee who leaves voluntarily under
good terms.
' Defendant's Brief in Opposition to Plaintiff's Motion for Judgment on the Pleadings, p.4.
7
ORDER
AND NOW, this 16 *day of January, 2011, upon consideration of the Plaintiff's Motion
for Judgment on the Pleadings, and Defendant's response thereto, and after oral argument by the
parties, the Plaintiff's Motion for Judgment on the Pleadings is GRANTED, and Defendant is
directed to abide by the terms and conditions of the Employment Agreement with regards to the
health insurance coverage of the Plaintiff by providing health insurance coverage in accordance
with the terms of the agreement, at company cost, until Plaintiff either attains the age of 65 or
dies.
It is further ordered, upon consideration of the Defendant's Motion for Judgment on the
Pleadings, and Plaintiff's response thereto, and after oral argument by the parties, the
Defendant's Motion for Judgment on the Pleadings is DENIED.
John R. Ninosky, Esquire
For the Plaintiff
George B. Faller, Jr., Esquire
For the Defendant
:rim
8
BY THE COURT,