HomeMy WebLinkAbout01-5009CARL D. EHRLER,
Plaintiff
V.
LAWRENCE CHEVROLET, INC,
Defendant
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY,
: PENNSYLVANIA
;
:NO.:
:
: CIVIL ACTION - LAW
NOTICE
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FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP.
Cumberland County Bar Association
2 Liberty Avenue
Cumberland County Courthouse
Carlisle, PA 17013
NOTICIA
USTED LE HAS SIDO DEMANDADO EN EL TRIBUNAL. Si desea alegar defensa
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Cumberland County Bar Association
2 Liberty Avenue
Cumberland County Courthouse
Carlisle, PA 17013
CARL D. EHRLER,
Plaintiff
LAWRENCE CHEVROLET, INC,
Defendant
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY,
: PENNSYLVANIA
;
;
: CIVIL ACTION - LAW
COMPLAINT
AND NOW comes Plaintiff, CARL D. EHRLER, by his attorney, John D. Sheridan,
Esquire, and the law firm of SERRATELLI, SCHIFFMAN, BROWN & CALHOON, P.C., who
files this Complaint and avers as follows:
1. Plaintiff, CARL D. EHRLER, is an adult individual currently residing in the State
of Texas and formerly residing at 423 Walnut Street, Harrisburg, Dauphin County, Pennsylvania
17018.
2. Defendant LAWRENCE CHEVROLET, INC., T/D/B/A LAWRENCE
CHEVROLET-OLDSMOBILE, is a Pennsylvania corporation, with a current business address
of 644 S. Carlisle Pike, Mechanicsburg, Cumberland County, Pennsylvania, 17055.
3. On or about November 30, 2000, Carl D. Ehrler and Lawrence Chevrolet, Inc.
entered into an Employment Agreement as set forth as Exhibit "A" attached hereto.
4. Said agreement provided for a term of employment from November 30, 2000
until December 31, 2001.
5. Said agreement provided for an extension of employment by mutual consent or
early termination in accordance with various causes and without cause alternatives.
6. Plaintiff was terminated without cause on June 11, 2000 and was paid
compensation through July 8, 2000.
7. Paragraph 3(e) provides that if Employee is terminated prior to December 31,
2001, without cause, the Employee shall be entitled to compensation in an amount equal to a
prorated portion of the Employee's current base salary calculated at 1/12th of his current base
salary multiplied by the number of months remaining from the effective date of such termination
to December 31, 2001, plus a prorated portion of any Additional Compensation which would
have been earned had such termination not occurred.
8. Plaintiff was entitled to Additional Compensation calculated by dividing 8.0% of
the net income of the company for the twelve-month period ending on December 31, 2001 by 12,
and multiplying that 1/12th of the 8.0% of the net income by the number of months which
expired from January 1, 2001 to the date such termination became effective.
9. Demand for payment was made by letter dated June 26, 2001 and sent certified
mail to Gary L. Lawrence, President of Defendant corporation. (Exhibit "B")
10. Refusal of demand for payment was communicated to counsel for the Plaintiff by
counsel for the Defendant dated July 2, 2001. (Exhibit "C")
11. Defendant is liable to Plaintiff for unpaid base salary of $30,000.00 for the period
July 8 through December 31, 2001.
12. Defendant is also liable to Plaintiff for Additional Compensation under paragraph
3(e) of said Employment Agreement, which amount is incapable of being determined at the
present time.
WHEREFORE, Plaintiff demands judgment against Defendant in the amount of
$30,000.00 plus 8.0% of net income of the Defendant for the period January 1, 2001 through
December 31, 2001 plus interest and costs.
Dated: August 24, 2001
Respectfully submitted,
SERRATELLI, SCHIFFMAN,
BROWN & CALHOON, P.C.
~7'Jo]~n D. Sheridan,
Esquire
/,/ / 2080I'D'#82275
/ Linglestown Road, Suite 201
c/ Harrisburg, PA 17101
(717) 540-9170
Attorneys for Plaintiff
3
CARL D. EHRLER,
Plaintiff
Vw
LAWRENCE CHEVROLET, INC,
Defendant
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY,
: PENNSYLVANIA
;
: NO.:
:
: CIVIL ACTION - LAW
VERIFICATION
The statements contained in this pleading are those of my attorney; however, I have
reviewed the Complaint and verify that the averments contained therein are tree and correct to
the best of my personal knowledge, information and belief. The undersigned understands that
false statements herein are made subject to the penalties of 18 Pa. C. S. Sec. 4904, relating to
unswom falsification.
Dated: ~> -~?0 - C3 \
Carl D. Ehrler, PT~aintiff
Exhibit A
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT ("Agreement"5 is made th:- =r~*_.e ~ .,
Novembfr, ,000, by and between LAWRENCE CHEVROLET, INC., a Pennsylvania business
corporation, V'cb'b/a Lawrence Chevrolet-Oldsmobile, with offices located at 6445 Carlisle Pike,
Mechanicsburg, PA 17055 ("Company"), and CARL D. EHRLER, an adult individual currently
residing at 5000 Whitestone Lane, #914, Plano, TX 75024 ("EmplOvee").
RECITALS
A. The Company desires to engage the services and employment of Employee, and
Employee is willing to accept employment by the Company on a fall time basis for such period.
upon the terms and conditions hereinafter set forth.
B. It is a condition of Employee's employment hereunder that Employee agrees to be
bound by the non-competition, non-solicitation and confidentiality, provisions hereot2
NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants herein contained, and intending to be legally bound hereby, the parties hereto agree as
tbllows: '
1. Employment. The Company, will employ Employee. and Employee accepts such
employment, for the period stated in section 3, upon the terms and conditions set forth in this
Agreement.
2. Duties Durino_ Emplovment Period. During the Employment Period i as
hereinafter defined¢. Employee agrees to perlbrm and discharge the duties and responsibilities
ordinarily performed by the general manager of an automobile dealership and such duties and
responsibilities as directed by the President of the Company. If is anticipated that the current
General Manager of the Company will remain in such capacity until December 31. 2001. and that
Employee will gain experience and knowledge through working with him. Employee shall devote
his best efforts and skill, attention and energies to the business and affairs of the Company on a
tull time basis in order to discharge the duties and responsibilities of Employee hereunder.
3. Term of Employment. The employment under this A~reement shall be for a
period commencing on the date hereof and ending on December 31.5001 (the "Employment
Period"), unless this Agreement is extended by mutual agreement of the Company and Employee
or terminated earlier in accordance with one of the following alternatives:
-- (a) Employee's employment may be terminated at any time during the Employment
Period lbr Cause (as hereinafter defined) by action of the President of the Company upon giving
Employee w'dtten notice of such termination for Cause (a Not, ce oI Termination for Cause")
and the reason or reasons therefore. The term "Cause" shall mean any of the following events:
EM[PLOYMENT AGREEMENT - Page I of 6 ~ /
(i) Employee's conviction of or piea of guilty or nolo contenders to a crime involving
moral turpitude or a crime Providing for a term of imprisonment;
(ii) Employee's willful misconduct; or
(iii) Employee's (A) breach of his fiduciary, duty to the Company or (B) neglect of
duties or failure to act with respect to duties or actions previously communicated in v~-riting to
Employee by the President of the Company, xvhich in either of the foregoing cases, in the sole
discretion of the Company, shall have adversely affected the Company or is reasonably likely in
the future to adversely affect the Company.
If Employee's employment is terminated under the provisions of this subsection 3 (a), ali rights of
Employee pursuant to subsections 4(a) and 4(c) (other than any rights which a retired or
terminated employee may have under any employee pension, health, welfare, disability- or other
benefit plan of the Company (collectively, "Benefit Plan")) will cease as of the effective date of
such termination.
(b) If Employee dies, his employment will be deemed to cease as of the date of death.
and his rights pursuant to subsections 4(a) and 4(c) (other than any rights which the sur~'iving
spouse, estate or personal representative of a deceased employee may have under any Benefit
Plan) will cease as of the last day of the month in which death occurs.
(c) If Employee is incapacitated by accident, sickness or otherwise so as to render the
Employee mentally or physically incapable of performing the services required hereunder lbr an
aggregate of 60 business days during any twelve-month period, upon such event and if the
condition rendering him unable to perform such services is continuing at the time of termination.
by action of the President of the Company. Employee's employment ma?' be terminated
immediately upon giving Employee notice to that effect. If Empioyce's employment is
terminated pursuant to the provisions of this subsection 3(c), Employee's rights pursuant to
subsections 4(a) and 4(c) (except rights which a disabled, retired or terminated employee ma?-
have under any Benefit Plan) will cease as of the last day of the month in xvhich such termination
occurs.
rd) By' 30 day's' x~q:itten notice to the other party., either party may terminate
Employee's employment with the Company Without cause. In which event, all rights of
Employee pursuant to subsections 4(a) and 4(c) (other than an.,,' rights which a terminated
employee may have under any Benefit Plan) will cease as of the effective date of such
termination.
(e) The Company acknowledges and agrees that the Employee has relied upon the
Company's promise to hire the Employee as general manager in training of its automobile
dealership and to provide the support and assets ordinarily made available to permit the
Employee to perform the duties and responsibilities of this position. The Company acknowledges
and agrees that in reliance upon the Company's promise of employment as a general manager.
EMPLOYMENT AGREEMENT - Page 2 of 6
the Employee has resigned from his current employment, declined to renew the lease on his
apartment in Plano, Texas, and incurred the expense of moving his household fi.om Piano, Texas
to the State of Pennsylvania. The Company acknowledges that the Employee's reliance upon the
promise of employment has a value which exceeds the moving costs and other expenses provided
by and/or reimbursed to the Employee by the Company; therefore, in the event the Company
were to terminate the Employee without cause prior to December 31,2001, the Employee shall
be entitled to compensation in an amount equal to a prorated portion of the Employee's current
Base Salary, calculated at 1/12 of his current Base Salary multiplied by the number of months
remaining t¥om the ef£ective date of such termination to December 31,2001, plus a prorated
portion of any Additional Compensation which would have been earned had such termination not
occurred. Said prorated Additional Compensation to be calculated by dividing 8.0% of the Net
Income of the Company' tbr the twelve month period ending on December 31,2001 by 12, and
multiplying that 1/12 of the 8.0% of the Net Income by the number of months which expired
t?om January I, 2001 to the date such termination became effective. Payment of the prorated
Base SalaD' is due and payable on the 30th day following the effective date of such termination.
Payment of the Additional Compensation is due within 90 days after December 3 I, 2001.
(t) In the event the Employee'is terminated without cause, the Employee is released
from and need not comply with the competitive restrictions imposed by subsections 5(a) (d)
& (fk herein, in other words, in the event the Company terminates the Employee without cause.
the Company waives of the competitive restrictions imposed by subsections 5(a) (d) (e) &
herein, and any remedies provided by subsection 7. herein.
(g) In the event the Company were to declare bankrnptcy, lose its franchise and, or
otherwise cease to operate as an automobile dealership, the Employee the Employee is released
/'rom and need not comply with the competitive restrictions imposed by subsections 5(a) (d) (e)
& tf), herein. In other words, in the event the Company terminates the Employee without cause.
the Company waives of~e competitive restrictions imposed by subsections 5ia) (d) (e) &
herein, and any remedies provided by subsection 7. herein.
4. Compensation.
(a) Base Salary. For services rendered by Employee. the Company ~vill pay him a
salau during the Employment Period at the rate of $60,000 per year. payable at such intervals as
salaries are paid generally to salaried employees of the Company and subject to withholding
required by law.
ih) Additional Compensation. On or before December 31. 200 i, and yearly thereafter
during all renewals or extensions hereof, Employee shall become entitled to additioiial
compensation ("Additional Compensation"), in addition to the salary provided pursuant to
subsection 4(a), calculated as 8.0% of the Net Income of the Company ~br the twelve-month
fiscal period ending on December 31,2001. and each respective fiscal year thereafter, during
Employee's employment.
EMPLOYMENT AGREEMENT - Page 3 of 6 /
For purposes of these calculations, "Net Income" means the net income of the Company
tbr the period indicated computed in accordance with generally accepted accounting principles
consistently applied, after deduction for officer and employee salaries and bonuses, retirement
plan expenses, interest expense and income taxes.
Within 90 days after December 31,2001, and each December 31 st thereafter during
Employee's employment, the Company shall determine the Net Income of the Company and the
amount of Additional Compensation payable to Employee pursuant to this subsection 4(b). A
copy of the Company's internally-prepared income statement shall be delivered to Employee as
soon as available, showing Net Income, accompanied by the Additional Compensation which is
payable at such time. Such statements shall be final, conclusive and binding on Employee unless
Employee gives notice to the Company within 5 days after receipt of such statements, stating in
reasonable detail the Employee's specific objections to the computation of Net Income or
Additional Compensation. the adjustments Employee believes are required to satisf?' such
objections and the amotmt of Net Income or Additional Compensation Employee believes to be
correct, taking into account such adjustments. If the parties cannot agree upon the amount of the
adjustment, if any. of any disputed item. it shall be conclusively determined by Boyer & Ritter or
such other accounting firm as is regularly retained by the Company.
ct Other Benefits. The Company will provide Employee during the Employment
Period with fringe benefits in the aggregate not less favorable than those provided to other
employees by the Company prior to the date hereof.
5. Noncompetition. During the time this Agreement is in effect and for a period of
,one (1) ?'ear therealier, the Employee shall not. directly or indirectly, acting alone or in
conjunction with others:
la Engage as a director, officer, employee, partner, shareholder, or in any'
other capacib', in any business in competition ~vith any' business then eem. conduc,ea by'
the Company within a rift?.- (50) mile radius of any otUce location or dealership site where
the Company is then conducting business;
!b) Request any customers of any business then being conducted by the
Company to curtail or cancel their business with the Company';
(c5 Disclose to any person, firm or corporation any trade, tec~hnicai or
technological secrets, any details of organization or business affairs, a.ny names of past or
present customers of the Company or any other information relating to the business of the
Company:
EMPLOYMENT AGREEMENT - Page 4 of 6
{d') Solicit. canvass or accept any business or transaction for any other person.
firm or corporation or business similar to any business of the Company within a rift5.' 150)
mile radius of any, office location or dealership site where the Company is conducting
business:
(e) Induce, or attempt to influence, any employee of the Company to terminate
employment with the Company or to enter into any employment or other business
relationship with any other person (including the Employee), firm or corporation; or
(f) Act or conduct himself in any manner which he shall have reason to
believe is inimical or contrary, to the l~est interests of the Company.
6. interpretation. It is expressly understood and agreed that although Employee and
the Company consider the restrictions contained in section 5 above reasonable for the purpose of
preserving tbr the Company its proprietary, rights, business value as a going concern and
goodwill, if a final judicial determination is made by a court having jurisdiction that the time or
any other restriction contained in section 5 is an unenforceable restriction against Employee. the
provision containing such restriction shall not be rendered void but shall be deemed amended to
apply as to such maximum time and territow and to such other extent as such court may
judicially determine or indicate to be reasonable. Alternatively. if the court referred to above
finds that any restriction contained in section 5 is unenforceable, and such restriction cannot be
amended so as to make ir enlbrceable, such finding shall not affect the entbrceabiliD- of any of
the other restrictions contained therein. The provisions of section 5 will in no respect limit or
otherwise affect the obligations of Employee under other agreements with the Company.
7. Remedies. Employee acknowledges and agrees that the Company's remedy at law
lbr a breach or threatened breach of any of the provisions of section 5 hereof would be
inadequate and. in recognition of this fact, in the event of a breach or threatened breach by
Employee of any of the provisions of section 5 hereof it is agreed that. in addition to its remedy
at law. the Company shall be entitled to equitable relief in the ~brm of specific performance.
tempor~ restraining order, temporm?~ or permanent injunction or any other equitable remedy
which may then be available, tn the event of any such breach, at the election nfthe Company. ail
rights of Employee under subsections 4(a) and 4(c) hereof (other than any rights which a retired
or terminated employee may have under any Benefit Plan') shall thereupon terminate. Employee
acknowledges that the granting of a temporary injunction, temporar?' restraining order or
permanent inj unction merely prohibiting the use of Proprietary Inlbrmation would not be an
adequate remedy upon breach or threatened breach, and consequently agrees, upon an3' such
breach or threatened breach, to the granting of injunctive relief prohibiting Employee's engaging
m business activities other than on behalf of the Company to the extent that Employee is then in
the employ of or consulting rbr the Company. Nothing herein contained shall be construed as
prohibiting the Company from pursuing any other remedies available to it for such breach or
threatened breach.
8. Notices. Any notice required or permitted to be given under this Agreement shall
be deemed properly given if in wxifing and personally delivered or mailed by certified U.S. mail.
postage prepaid with return receipt requested, to the respective party, at the address set forth
above. Either part5,.' may provide notice of another addressee or address as will be set tbrth in a
notice given in the same manner.
EMPLOYMENT AGREEMENT - Page 5 of 6
9. Assignment. This Agreement shall not be assignable by either party except by the
Company to any successor in interest to the Company's business; provided that no such
assignment shall relieve the Company from its obligations under this Agreement.
10. Entire Aereement. This instrument contains the entire agreement of the parties
relating to the subject matter hereof, and may not be waived, changed, modified, extended or
discharged orally but only by an agreement in writing, signed by the party, against whom
enforcement of any such waiver, change, modification, extension or discharge is sought. The
waiver by any party of a breach of any provision of this Agreement by an.',' other will not operate
or be construed as a waiver of any subsequent breach by such other party.
11. Survival. Any termination of this Agreement shall not affect the provisions of
sections 5, 6, or 7, which shall survive such termination in accordance with their terms.
12. Applicable Law. This Agreement shall be governed by' and construed in
accordance with the laws of the Commonwealth of Pennsylvania without regard to its conflict of
laws provisions.
13. Headin~os. The headings of the sections are for convenience of reference only and
shall not control or affect the meaning or construction or limit the scope or intent of any of the
provisions of this Agreement.
t 4. Counterparts. This Agreement may be executed in several counterparts or with
counterpart signature pages, each of which shall be deemed an original, but such counterparts
shall together constitute but one and the same Agreement.
IN WITNESS WHEREOF, the parties have executed this Employment Agreement.
intending to be legally bound hereby, as of the date first above written.
WITNE S S: .
./ ~ CARL D. EHRLER
,' ~ "Employee"
ATTEST:
EMPLOYMENT AGREEMENT - Page 6 of 6
(Initials
LAWRENCE CHEVROLET, INC.. t.'®'b/a
· Lawrence Chevrolet-Oldsmobile
{w tniti [ '
Exhibit B
June 26, 2001
CERTIFIED MAIL~ R.R.R 7604 8305
Mr. Gary L. Lawrence
Lawrence Chevrolet Oldsmobile
6445 Carlisle Pike
Mechanicsburg, PA 17055
Re: Termination of Carl D. Ehrler
Dear Mr. Lawrence:
We have been retained by Mr. Carl D. Ehrler to pursue his rights under
a certain Employment Agreement dated November 30, 2000. I have reviewed
your termination letter of June 11, 2001, Mr. Ehrler's response thereto dated
June 12th, and your clarification letters of June 13th and 14th. Although the
contract clearly provides that Mr. Ehrler could be terminated without cause, the
reasons stated in your June 11, 2001 letter certainly do not rise to the level of
justifiable cause as required by paragraph 3(a)(iii). Furthermore, Mr. E,hrler
takes exception to the allegations in your letter of June 11, 2001, including
those involving the new vehicle ordering system.
Inasmuch as Mr. Ehrler was terminated without cause, paragraph 3(e)
provides the severance for which he is entitled. Specifically, demand is hereby
made for the base salary due for the period from July 8, 2001 through
December 31, 2001. Furthermore, Mr. Ehrler is entitled to a prorated portion
of additional compensation computed under the contract at 8% of net profits.
We have been authorized by Mr. Ehrler to file suit in the event this
matter cannot be resolved amicably. Accordingly, unless full payment of his
base compensation is received in our office no later than August 8, 2001, with
the promise that the additional compensation due him under the contf~/ct will
Mr. Gary L. Lawrence
June 26, 2001
Page Two
be paid no later than March 31, 2002, we will file suit for your breach of the
aforementioned contract. Should you wish to resolve this matter prior to
judicial intervention, you or your attorney should contact our office.
Very truly yours,
Exhibit C
HEATH L ALLEN
N. DAVID RAHAL
CHARLES~RUBENDALL~
ROBERT L. WELDON
KeEfER WOOD ALLEN ~. RAHAL, LLP
:~10 WALNUT STREET
R O. BOX 11963
HARRISBURG, PA 17108-1963
PHONE 1717) 255-8000
July 2, 2001
ESTABLISHED IN 1878
OF COUNSEL:
SAMUEL C. HARRY
415 FALLOWFIELD ROAD
CAMP HILL, PA 17011
(717) 255-8051
epepinsky@keeferwood.com
John D. Sheridan, Esquire
Serratelli, Schiffman, Brown & Calhoon, P.C.
2080 Linglestown Road
Harrisburg, PA 17101
RE: TERMINATION OF CARL D. EHRLER
Dear Mr. Sheridan:
We represent Lawrence Chevrolet-Oldsmobile, and Mr. Gary L. Lawrence, President,
has provided me with a copy of your June 26 letter. We have advised Mr. Ehrler that his
termination was for cause. Therefore, Mr. Ehrler is not entitled to severance under paragraph
3(e) of the Employment Agreement dated November 30, 2000.
If you have any questions, please do not hesitate to contact me atthe address or direct
dial number shown above. Similarly, if you have a proposal for an amicable resolution, please
communicate that to me as well.
Very truly yours,
Eu¢:'-Pepinsky, Jr.
EEPJ:eas .,
cc: Mr. Gary L. Lawrence, President
SHERIFF'S RETURN -
CASE NO: 2001-05009 P
COMMONWEALTH OF PENNSYLVANIA:
COUNTY OF CUMBERLAND
EHRLER CARL D
VS
LAWRENCE CHEVROLET INC
REGULAR
CPL TIMOTHY REITZ , Sheriff or Deputy Sheriff of
Curaberland County, Pennsylvania, who being duly sworn according to law,
says, the within COMPLAINT & NOTICE was served upon
LAWRENCE CHEVROLET INC the
DEFEN-D~uNT , at 0915:00 HOURS, on the 29th day of August
at 6445 CARLISLE PIKE
, 2001
MECHANICSBURG, PA 17055 by handing to
STEVE HARTLE SALES M3LNAGER
a true and attested copy of COMPLAINT & NOTICE together with
and at the same time directing His attention to the contents thereof.
Sheriff's Costs:
Docketing 18.00
Service 5.85
Affidavit .00
Surcharge 10.00
.00
33.85
Sworn and Subscribed to before
me this ~3~5¢ day of
, I~rothonotary
So Answers:
R. Thomas Kline
08/30/2001
SER TELLI SOHIFF ER 5 _
KEEFER WOOO ALLEN & F~AHAL, LLP
CARL D. EHRLER, :
Plaintiff :
LAWRENCE CHEVROLET, INC. :
Defendant :
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION LAW
No. 01-5009 Civil
NOTICE TO PLEAD
TO THE WITHIN NAMED PLAINTIFF:
You are hereby noti fled to file a written response to the enclosed answer with new matter
of defendant Lawrence Chevrolet, Inc. within twenty (20) days from service hereof or a
judgment may be entered against you.
KEEFER WOOD ALLEN & RAHAL, LLP
Donald M. Le~,J4'IIl
CARL D, EHRLER,
Plaintiff
LAWRENCE CHEVROLET, INC.
Defendant
: IN THE COURT OF COMMON PLEAS OF
: CUMBERLAND COUNTY, PENNSYLVANIA
:
CIVIL ACTION -- LAW
:
:
: No. 01-5009 Civil
DEFENDANT'S ANSWER WITH NEW MATTER
TO PLAINTIFF'S COMPLAINT
Defendant Lawrence Chewolet, Inc. (hereinafter "defendant"), through its counsel,
Keefer Wood Allen & Rahal, LLP, submits the following answer with new matter in response to
plaintiff's complaint, avelving as follows:
1. Admitted, upon information and belief.
2. Admitted with clarification. The actual address for defendant is 6445 Carlisle
Pike, Mechanicsburg, Pennsylvania.
3. Admitted.
4. Admitted with clarification. The agreement provided for a term of employment
from November 30, 2000, to December 31, 2001, assuming that plaintiffwas not terminated with
or without cause. By way of further answer, defendant states that as a written document, the
employment agreement in question speaks for itself.
5. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required. To the extent that a response is deemed required,
defendant states that the employment agreement in question as a written document speaks for
itself, and defendant objects to plaintiff's characterization of its contents.
6. Admitted in part and denied in part. Defendant admits that plaintiff was paid
compensation through July 8, 2000. Defendant specifically denies that plaintiff was terminated
without cause; on the contrary, plaintiff's termination was for cause.
7. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required. To the extent that a response is deemed required,
defendant states that the employment agreement in question as a written document speaks for
itself, and defendant objects to plaintiff's characterization of its contents. By way of further
answer, plaintiff's termination was for cause, and plaintiff, therefore, is not entitled to further
salary or additional compensation under the terms of the employment agreement in question.
8. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required. To the extent that a response is deemed required,
defendant states that the employment agreement in question as a written document speaks for
itself, and defendant objects to plaintiff's characterization of its contents. By way of further
answer, plaintiff's termination was for cause, and plaintiff, therefore, is not entitled to further
salary or additional compensation under the terms of the employment agreement in question.
9. Admitted in part and denied in part. Defendant admits receiving the letter
attached to plaintiff's complaint as exhibit "B." The remainder of this paragraph is denied on the
ground that the document speaks for itself and requires no further characterization.
-2-
10. Admitted in part and denied in part. Defendant admits its counsel sent the letter
attached to plaintiff's complaint as exhibit "C." The remainder of this paragraph is denied on the
ground that the document speaks for itself and requires no further characterization.
1 I. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required. To the extent that an answer is deemed required,
defendant specifically denies that it is liable to plaintiff for the base salary for the period of July 8
through December 31,2001, or for any other compensation, since plaintiff's employment was
properly terminated for cause.
12. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required. To the extent that an answer is deemed required,
defendant specifically denies that it is liable to plaintiff for any additional compensation
whatsoever, since plaintiff's employment was properly terminated for cause.
WHEREFORE, defendant respectfully requests this Honorable Court to dismiss
plaintiff's complaint, to enter judgment in its favor, together with costs of suit and such other and
further relief as the Court deems fair and just.
NEW MATTER
13. Defendant incorporates by reference the foregoing paragraphs 1 through 12 of
this answer with new matter as if fully set forth at this place.
14.
defendant.
15.
The complaint fails to state any claim upon which relief can be granted as against
Plaintiff's employment with defendant was properly terminated for cause.
-3-
16. Plaintiff breached the terms of his employment agreement, in that he neglected or
failed to perform the duties and responsibilities for which he had been hired, i.e., those duties and
responsibilities ordinarily performed by the general manager of an automobile dealership.
17. Plaintiffperformed virtually no work for defendant during the entire length of his
employment and took no initiative whatsoever to perform and discharge the duties and
responsibilities ordinarily performed by the general manager of an automobile dealership or such
duties and responsibilities as were directed by defendant's President, as required by the
employment agreement.
18. Plaintiff's conduct reflected a wanton and willful disregard of the employer's
interests, deliberate violation of rules, disregard of standards of behavior that the employer
rightfully expected fi.om the employee, and negligence manifesting an intentional and substantial
disregard for the employer's interests and the employee's duties and obligations.
19. As such, and othenvise, plaintiff engaged in willful misconduct, which thereby
constituted justifiable cause for termination under paragraph 3(a)(ii) of the subject employment
agreement.
20. In the alternative, plaintiff's conduct amounted to a neglect of duties and thereby
constituted justifiable cause for termination under paragraph 3(a)(iii)(B) of the subject
employment agreement.
21. In the alternative, plaintiff's conduct amounted to a failure to act with respect to
duties or actions previously communicated in writing to plaintiffby defendant's President and
-4-
thereby constituted justifiable cause for termination under paragraph 3(a)(iii)(B) of the subject
employment agreement.
22. Under the terms of the employment agreement, even ifplalntiffwas entitled to
additional compensation, which defendant denies, such additional compensation would not be
payable to plaintiff until after December 31, 2001, and would thereafter be payable, if at all,
anytime within the following ninety (90) days.
23. Under the terms of the employment agreement, even if plaintiff was entitled to
additional compensation, which defendant denies, the mount of such additional compensation,
if any, could not be determined until after the end of defendant's fiscal period ending December
31, 2001, to be calculated on the basis of defendant's Net Income, if any, as defined in the
employment agreement.
24. For the reasons set forth in the foregoing paragraphs 23 and 24, incorporated here
by reference, plaintiff's demand for additional compensation is premature, fails to state a claim
upon which relief can be granted, and should be dismissed.
25. Plaintiff, because of his own conduct, including acts and failures to act, is
estopped fi.om recovery.
26. Plaintiff has failed to mitigate his damages, if any.
-5-
WHEREFORE, defendant respectfully requests this Honorable Court to dismiss
plaintiff's complaint, to enter judgment in its favor, together with costs of suit and such other and
further relief as the Court deems fair and just.
Respectfully submitted,
KEEFER WOOD ALLEN & RAHAL, LLP
Dated: September/~, 2001
I.D. # 58510
Eugene E. Pepinsky, Jr.
I.D. # 23702
210 Walnut Street
P. O. Box 11963
Harrisburg, PA 17108-1963
717-255-8038 and-8051
Attorneys for defendants
-6-
Thc undersigned, Fred S. Richsioin, hereby vcrifics and states that:
1. He is General Manager of defendant Lawrence Chcvrolel, lac.:
2. He is authorized to make this verification on its behalf;
3. The facts set forlh in the foregoing answer with new mater are true and correct to
the best of his knowledge, information, and belief; and
4. He is aware that false statements herein are made subject to the penalties of Ill
Pa.C.S. § 4904, relating to unsworn falsificaion~/
Fre5 ~. Ri
Dated: September ~ 2001
stein
CERTIFICATE OF SERVICE
I, Donald M. Lewis III, Esquire, one of the attorneys for defendant, h~reby certify that I
have served the foregoing paper upon counsel of record this date by depositing a true and correct
copy of the same in the United States mail, first-class postage prepaid, addressed as follows:
John D. Sheridan, Esquire
Serratelli, Schiffman, Brown &
& Calhoon, P.C.
2080 Linglestown Road, Suite 201
Harrisburg, PA 17101
KEEFER WOOD ALLEN & RAHAL, LLP
Dated: Septamber ~, 2001
CARL D. EHRLER,
Plaintiff
V.
LAWRENCE CHEVROLET, INC,
Defendant
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY,
: PENNSYLVANIA
;
: NO.: 01-5009
:
: CIVIL ACTION - LAW
PLAINTIFF'S ANSWER TO NEW MATTER
Plaintiff, Carl D. Ehrler (hereinafter "Plaintiff'), through his counsel, Serratclli,
Schiffman, Brown & Calhoon, PC, submits the following answer to new matter in response to
Defendant's Answer to Plaintiff's Complaint, averring as follows:
14. Denied. The claim upon which relief can be granted is breach &contract.
15. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required.
16. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required. To the extent an answer is deemed required,
Plaintiff specifically denies that he neglected or failed to perform the duties and responsibilities
for which he was hired. Specific proof of such neglect or failure is hereby demanded.
17. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required. To the extent a response is required, Plaintiff
specifically denies that he failed to perform duties directed by Defendant President. Specific
proof of such allegation is hereby demanded.
18. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required. To the extent a response is required, Plaintiff
specifically denies this allegation. Specific proof of deliberate violation of rules and disregard of
standards of behavior is hereby demanded.
19. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required. Specific proof of such willful misconduct is
hereby demanded.
20. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required. Specific proof of neglected duties is hereby
demanded.
21. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required. Specific proof of writings from President to
Plaintiff are hereby demanded.
22. Admitted in part; denied in part. In accordance with paragraph 3(e) additional
compensation, defined as 8% of the net income for the year ended December 31,2001 prorated
for the period January 1, 2001 through the date of termination would not be due until some time
between January 1, 2002 and March 31, 2002. However, base pay from the date of termination
through December 31, 2001, based on Sixty Thousand Dollars ($60,000.00) annually was due
within 30 days of the date of termination.
23. Admitted. It is admitted that the computation of Net Income cannot be calculated
until after December 31, 2001.
24. Denied. The demand for payment is not premature in that the right to make a
demand for payment accrued at the time of wrongful termination. Determining the exact mount
of the payment can be delayed until January of 2002 when the calculation can be completed.
2
25. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required. Specific proof of all failures to act or acts which
cause termination are hereby demanded.
26. Denied. This averment is a conclusion of law, or a mixed conclusion of law and
fact, to which no response is deemed required. To the extent that a response is necessary,
Plaintiff avers that the employment contract does not require mitigation because all rights to
regular salary as well as additional compensation matured, but for the precise calculation, at the
time of wrongful termination.
WHEREFORE, Plaintiff demands judgment against Defendant in the mount of
$30,000.00 plus 8% of the net income of the Defendant for the period January 1, 2001 through
December 31, 2001 prorated for the period January 1, 2001 to the date the wrongful termination
became effective, to wit, July 8, 2001, plus interest and costs of suit and such other relief as the
Court deems fair and just.
Dated:
October 17, 2001
Respectfully submitted,
SERRATELLI, SCHIFFMAN,
BROWN & CALHOON, P.C.
By ~////~ ' ¢ r
(, Jo r . Sheri
I.D.#82275
2080 Linglestown Road, Suite 201
Harrisburg, PA 17101
(717) 540-9170
Attorneys for Plaintiff
3
CARL D. EHRLER,
Plaintiff
V.
LAWRENCE CHEVROLET, INC,
Defendant
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY,
: PENNSYLVANIA
;
: NO.: 01-5009
:
: CIVIL ACTION - LAW
VERIFICATION
The statements contained in this pleading are those of my attorney; however, I have
reviewed the Answer to New Matter and verify that the averments contained therein are true and
correct to the best of my personal knowledge, information and belief. The undersigned
understands that false statements herein are made subject to the penalties of 18 Pa. C. S. Sec.
4904, relating to unswom falsification.
CARL D. EHRLER,
Plaintiff
V,
LAWRENCE CHEVROLET, INC,
Defendant
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY,
PENNSYLVANIA
NO.:
CIVIL ACTION - LAW
CERTIFICATION OF SERVICE
I am the attorney for the above-captioned party in this action, and hereby certify that on
this date I served a true and correct copy of the ANSWER TO NEW MATTER through the U.S.
Postal Service, postage pre-paid, to the following address:
Donald M. Lewis,III., Esquire
Keefer Wood Allen & Rahal, LLP
210 Walnut Street
Harrisburg, PA 17101
Dated: October 18, 2001
Respectfully submitted,
SERRATELLI, SCHIFFMAN,
Harrisburg, PA 17110
(717) 540-9170
CARL D. EHRLER,
Plaintiff
LAWRENCE CHEVROLET, INC,
Defendant
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY,
: PENNSYLVANIA
;
: NO.: 01-5009
:
: CIVIL ACTION - LAW
PRAECIPE
TO THEPROTHONOTARY:
Kindly mark the above matter settled, discontinued and ended, with prejudice.
SERRATELLI, SCHIFFMAN,
BROWN & CALHOON, P.C.
John D. S'~i~lan, Esquire
2080 Linglestown Road
Suite 201
Harrisburg, PA 17110
(717) 540-9170
ATTORNEY FOR PLAINTIFF
Dated: October 31 , 2002