HomeMy WebLinkAbout95-00437
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SHELBY C. DUNMIRE
t/d/b/a BLOOMINGNAILS,
, PLAINTIFF
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
vs.
NO. qr, 'Ij 7 1:.P7
CIVIL ACTION
EQUITY
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NICOLE S. PROBST,
DEFENDANT
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 is
served, by entering a written appearance personally or by
attorney and filing in writing with the Court your defenses or
obj ections to the claims set forth against you. You are
warned that if you fail to do so, the case may proceed without
you and a judgment may be entered against you by the court
without further notice for any money claimed in the Complaint
or for any other claim or relief requested by the Plaintiff.
You may lose money or property or other rights important to
you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF
YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR
TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN
GET LEGAL HELP.
COURT ADMINISTRATOR
CUMBERLAND COUNTY COURTHOUSE
1 COURTHOUSE SQUARE
CARLISLE, PA 17013
(717) 240-6200
mANt: G. RABel.lFt'
ATrORNf,\'.AT.I,AW
5H" TIUNUU. ROAn
('.AMI'IIII.1.,I'A 17011
1
SHELBY C. DUNMIRE
t/d/b/a BLOOMINGNAILS,
PLAINTIFF
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
vs.
NO. i ~'. '13 '/ q...:t:/ --r;~,.-
CIVIL ACTION
EQUITY
NICOLE s. PROBST,
DEFENDANT
COMPLAINT
AND NOW, this :-]1 day ofndfL((,~, 1995, comes
Plaintiff, Shelby C. Dunmire, ~b/a/ JLiomingnails, by
the
her
attorney, DIANE G. RADCLIFF, ESQUIRE, and files this Complaint
of which the following is a statement:
1. The Plaintiff, Shelby C. Dunmire, is an adult
individual and the sole owner and proprietor of a nail and
skin care business known as Bloomingnails, having a principal
place of business located at 4401 Carlisle Pike, Camp Hill,
Cumberland County, Pennsylvania.
2. The Defendant, Nicole S. Probst, is an adult
individual residing at 14 McNaughton Drive, Duncannon, Perry
County, Pennsylvania.
3. At all times herein relevant the Plaintiff has been
in the nail and skin care service business, which business
includes, but is not limited to nail and skin care services
and sales of related products for men and women, which
business services the Camp Hill, Mechanicsburg and surrounding
areas.
4. On or about March 1, 1994, the Plaintiff and
mANE G. ItAIlCLlH'
ATTORNI:V.AT.J.AW
SHI TItINI1U: RO"U
r.AMI'IIIU., PA nOli
2
IlIAN.: G. RAIlCl,lH
ArrnRNI:\'.AT.I.AW
!HII TMINIH.[ IWAU
CAP-n'llll..., I'A 171111
Defendant became associated wherein the Defendant became a
trainee for the position of manicurist on a temporary basis to
last until completion of the training program, at which time
the parties would decide whether or not the Defendant would be
employed as a full-time regular manicurist.
5. At the time the Defendant became a trainee of the
Plaintiff's business, the Plaintiff advised the Defendant that
if she were hired as a full-time regular employee she would be
required to sign an employment contract containing certain
restrictive agreements and on said date a copy of the
employment contract was provided to the llefendant by the
plaintiff for review.
6. On April 1, 1994, at the completion of the training
program the Plaintiff agreed to hire the Defendant and the
Defendant agreed to accept the Plaintiff's employment as a
full-time regular employee as a manicurist, as the result of
which the Defendant's responsibilities and duties and rate of
P3Y were changed.
7. In consideration for the Plaintiff to hire the
Defendant as aforesaid and in accordance with the
understanding of the parties set forth in Paragraph 6 above,
the parties entered into an Employment Agreement signed on and
dated April 1, 1994, which agreement was in the same form as
that provided to the Defendant on or about March 1, 1994. A
true and correct copy of the Employment Agreement is attached
3
hereto, marked Exhibit "A" and made a part hereof.
8.
The Defendant,
in the aforesaid Employment
Agreement, agreed that for a period of one (1) year after the
termination of her employment with the Plaintiff that the
Defendant would not disclose any information of the plaintiff,
including, but not limited to, customer information, acquired
by her during the period of her employment
9. The Defendant, in the aforesaid Employment contract,
further agreed that for a period of one (1) year following the
termination of her employment she would not call nor solicit
nor disclose, either directly or indirectly, any of the
customers of the Plaintiff.
10. The Defendant,
in the aforesaid Employment
Agreement, further agreed that for a period of one (1) year
following the termination of her employment with the Plaintiff
that she would not engage in the business of nail services or
any other business competitive with the Plaintiff's business
within a twenty-five (25) mile radius of the Plaintiff's place
of business.
11. The Defendant,
in the aforesaid Employment
Agreement, further agreed that she would pay the employer
liquidated damages of $10,000.00 for any breach of the
aforesaid contractual agreements and $1,000.00 as liquidated
damages in the event she terminated without good cause after
having received training from the Plaintiff.
DIANE G. RADCLIff
ATTORNf,\,.^T.I.AW
'H" TRINIIU. A(}AU
(:.\MI'IIII.I..I''\ 171111
4
12. On or about November 23, 1994, the Defendant
terminated her employment with the Plaintiff.
13. On or about November 30, 1994, the Defendant began
work as a nail technician with Chippen Nails, a nail salon
located at 6500A Carlisle pike, Mechanicsburg, Pennsylvania,
a location less than twenty..five (25) miles from the
Plaintiff's place of business.
14. It is believed that the Defendant has solicited the
customers of the Plaintiff in violation of the terms of the
Employment Agreement.
15. The Defendant has further violated the terms of the
Employment Agreement by engaging in nail care services at a
location within twenty-five (25) miles of the Plaintiff's
place of business within one (1) year of the date of
termination of her employment with the Plaintiff.
16. The Plaintiff has no adequate remedy at law.
17. The plaintiff will be irreparably harmed if the
JIIANE G, RAIlCl.IH
ATroRNf:Y,AT.I.AW
SH8 TRINH"': }lUAU
(:A"II'IIIJ,J., I'A 17011
Defendant is not enjoined from contacting her customers and
from participating in a nail service business within the
twenty-five (25) mile radius agreed upon in the Employment
Agreement
lB. The Plaintiff is entitled to $10,000.00 in
liquidated damages for the violations aforesaid as agreed upon
in the Employment Agreement.
WHEREFORE, Plaintiff respectfully requests your Honorable
5
Court to enter an Order:
(a) enjoining the Defendant from contacting
the Plaintiff's customers or otherwise disclosing
any confidential information of the Plaintiff.
(b) enjoining the Defendant from engaging in
any business offering nail care services in an area
within a twenty-five (25) mile radius of the
Plaintiff's place of business as a principal,
partner or employee.
(c) requiring the Defendant to terminate her
employment with Chippen Nails.
(d) awarding the Plaintiff $10,000.00 in
liquidated damages.
(e) awarding the plaintiff attorney's fees
and costs of suit.
DIANE G. RAIlCLln'
ATJ'llRNI:\'.AT.I.AW
3HI TRINIII.t: ROAn
GAMI'UII.I"I'A 171111
6
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EMPLOYMENT AGREEMENT n
THIS AGREEMENT made between _~ \~O\e.. l-Iro'oJ
herein referred to as "Employee" and SHELBY C. DUNMIRE d/b/a
BLOOMINGNAILS, whose principal place of business is located
at 4401 Carlisle Pike, Camp Hill, Pennsylvania 17011, herein
referred to as "Employer".
Employer is engaged in the business of providing nail
and skin care services and sales of related products for men
and women, and maintains a salon located at 4401 Carlisle
Pike, Camp Hill, Pennsylvania 17011.
Employer has developed procedures, techniques, methods,
products, and customer lists which are confidential and
vital to the business.
AGREEMENT 1 . EMPLOYMENT
Employer hires Employee as a manicurist to perform nail
services for Employer's customers. Employee accepts and
agrees to such duties, subject to the supervision and
d~rection of Employer. Further, Employee shall perform
other duties including, but not limited to, attending salon
meetings and educational workshops, shows, and daily salon
cleaning, as may be assigned to Employee from time to time
by Employer.
AGREEMENT 2 - EMPLOYEE WORK
Employee agrees to faithfully, l.ndustriously, and to
the best of Employee' s ability, experience, and talents,
perform all of the duties that may be required of and from
Employee, pursuant to the express and implicit terms hereof,
to the reasonable satisfaction of Employer. Such duties
1
EXHIBIT
I~
shall be rendered at 4401 Carlisle Pike, Camp Hill,
pennsylvania and at such other place or places as Employee
shall in good faith require or as the interest, needs,
business of opportunity or Employer shall require.
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The em~oyment shall
and end -I.j1l-l \ I
following:
AGREEMENT 3 - TERM OF EMPLOYMENT
commence _~()I- i \ J
, 19 9'5" 'but subject
19f1,
to the
A. If the Employee is absent from his/her
employment without Employer's consent for more than
four weeks in the aggregate during any fifty-two week
period, the Employer may terminate the employment of
the Employee.
"
B. The employment of the Employee may be
terminated by the Employer at any time for good cause
in the performance of the Employee's work, or in the
event that business conditions dictate the reduction of
the work force by Employer.
C. The employment of the Employee may be
terminated at any time during or at the end of the
employment term, with or without cause, by either party
upon giving thirty (30) days advance written notice of
said termination. If the employment of the Employee is
not terminated at the end of the term of this
agreement, it shall continue in effect for a new term
of the same duration and shall continue to renew
automatically thereafter under the same terms and
conditions herein set forth.
2
AGREEMENT 4 - COMPENSATION OF EMPLOYEE
Employer shall pay Employee, and Employee shall accept
from Employer, in full payment for Employee's services
hereunder, a compensation program as described in Addendum
A, which is attached hereto.
AGREEMENT 5 - OTHER EMPLOYMENT
During the term of employment of the Employee by the
Employer, the Employee shall not directly or indirectly
engage in or be engaged by or be in the employment of any
other person, firm or corporation engaged in a business
similar to Employer's business without express written
consent of Employer.
.
AGREEMENT 6 - CONFIDENTIAL INFORMATION
Employee agrees that during Employee's employment, and
for a period of one year thereafter, Employee will not
disclose any information or data concerning the practices,
procedures, and methods of operation of Employer or
customers of Employer, disclosed to or acquired by her in
confidence at any time during the period of Employee's
employment.
Further, Employee agrees that for and during the entire
term of Employee's employment that any and all files,
materials and information regarding the practices,
procedures and policies of Employer and any and all customer
lists and records shall be considered and kept as the
private and privileged records of the Employer and will not
be divulged to any firm, individual or institution.
3
Further, Employee agrees that on termination of her
employment for any cause whatsoever, she will surrender to
Employer in good condition any record or records kept by her
containing the names, address and other information with
regard to customers or potential customers of Employer
served by Employee.
Further, for a period of one year immediately following
the termination of the employment, Employee shall neither
call, nor solicit either for Employee or any other,person or
firm, any customers of Employer on whom Employee learned
during her employment hereunder, nor shall Employee make
known to any person or firm, either directly or indirectly,
the names or addresses of any such customers or any
information relating in any manner to Employer's trade or
business relationship with such customers.
,
AGREEMENT 7 - NON-COMPETITION
Employee agrees that for a period of one year after
termination of employment with Employer in any manner,
whether with or without cause, Employee will not, within a
twenty-five mile radius of any salon owned by Employer, its
successors or assigns, directly or indirectly, engage in the
business of nail services or in any business competitive
with Employer for a period of one years.
Directly or indirectly engaging in the business of nail
services or in any competitive business shall include
engaging in business as owner, partner, or agent, or as
Employee of any person, firm or corporation engaged in such
business.
If, however, any of the foregoing provisions should be
held to bo illegal, invalid or unonforceable because of time
4
limitations and geographical area such provisions shall
nonetheless be effective and enforceable for the period of
time and ill such geographical area as may be held to be
reasonable by any court of competent jurisdiction.
AGREEMENT 8 - LIQUIDATED DAMAGES
On the breach of Employee of any of the terms and
conditions of agreements 5, 6 or 7 of this employment
agreement, Employee shall pay to Employer the sum of ten
thousand dollars ($10,000.00) to compensate Employer for
injury by reason of such breach, it being impossible to
ascertain or estimate the entire exact cost, damage or
injury which Employer may sustain by reason of the breach,
and such sum is agreed on as compensation for injury
,
suffered by Employer, and not as a penalty.
In the event the Employee shall terminate her
employment within one year of her receiving training from
Employer, and such termination is without good cause arising
out of Employer's actions, then Employee shall pay to
Employer the sum of one thousand dollars ($1,000.00) to
compensate Employer for injury by reason of having provided
such training and not having received the benefit of the
training of the Employee, which sum is agreed to be paid as
liquidated damages and not as a penalty, it being impossible
to ascertain or estimate the entire exact cost, damage or
injury which the Employer may sustain by reason of said
termination.
5
\
AGREEMENT 9 - INJUNCTIVE RELIEF
Employee acknowledges that the remedies at la~r for any
breach by Employee of the provisions of agreements 5, 6 and
7 will be inadequate relief against Employee and that in the
event of breach of said agreements 5, 6 and 7, Employer
shall further be entitled to injunctive relief against
Employee and in which event Employee aCKnowledges and
warrants that Employee will be fully able to earn and
adequate livelihood for Employee's self and dependents if
the terms of these agreement are specifically enforced by
way of injunction entered against Employee.
ARTICLE 10 - CUMULATIVE REMEDIES
.
The remedies of Employer set forth in agreements 5, 6
7, 8 and 9, as well as those remedies provided for by law or
in equity are understood and agreed to be cumulative in
nature and may be exercised jointly and concurrently and
shall not be deemed to be in the alternative.
ARTICLE 11 - SURVIVAL
The agreements set forth in agreements 5, 6, 7, 8, 9
and 10 are given by Employee to Employer in consideration of
the employment of Employee or in consideration of the
training of Employee or giving of other job-related
promotion or benefit. The promises and covenants set forth
in said agreement shall survive and remain enforceable
against Employee even though: the employment of Employee
shall hereafter be terminated; and/or the parties shall
cltecute a ncw employment agreement unless said agreement
6
specifically negates agreements 5, 6, 7, 8 and 9; and/or
upon any renewal of this agreement.
AGREEMENT 12 - SUCCESSORS AND ASSIGNS
This agreement shall extend to and bind the successors
and assigns of the Employer, but shall not be assignable by
the Employee due to the nature of Employee's obligations
hereunder as personal services.
AGREEMENT 13 - SEVERABILITY
Each agreement set forth herein is separate and
distinct from every other agreement set forth herein and in
the event of invalidity of ,any agreement, the rema~n~ng
agreement shall be deemed to be independent and divisible
and in full force and effect.
AGREEMENT 14 - MODIFICATION AND WAIVER
This agreement or any provision hereof may be amended,
supplemented or modified only by a writing signed by both
parties and may be waived only by a writing signed by the
party to be bound thereby. A written waiver of any
provision shall be valid only in the instance for which it
is given and shall not be deemed to be a continuing waiver
or construed as a waiver of any other provision.
AGREEMENT 15 - ENTIRE AGREEMENT
Employee has read this agreement and fully understands
the terms and conditions set forth herein. This agreement
7
sets forth the entire understanding and agreement between
the parties and supersedes all previous agreements, oral or
written, and all other communication between the parties
relating to the subject matter hereof.
IN WITNESS WHEREOF, the parties
a~ment at Camp H~~l( Pennsylvania
....: \ , 19~.
WITNESS: BLOOM GNAILS
have executed this
on the .J.i, day of
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EMPLO E
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VERIFICATIOP
SHELBY C. DUNMIRE t/d/b/a BLOOMINGNAILS verifies that the
statements made in this COMPLAINT are true and correct.
SHELBY C. DUNMIRE t/d/b/a BLOOMINGNAILS understands that false
statements herein are made subject to the penalties of 18 Pa.
C.S. Section 4904, relating to unsworn falsification to
authorities.
DIANE G. RADCLIff
ATTORNEY-AT-LAW
'UII TRINUl..E ROAn
CAMP IIIU,. PA 17011
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IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
SHELBY C. DUNMIRE t/d/b/a
BLOOMINGNAIL'S .
.
Plaintiff . NO. 95-437 EQUITY TERM
.
V.
.
.
NICOLE PROBST
Defendant . CIVIL ACTION - EQUITY
.
ORDER
AND NOW, this day of , 1995, upon hearing
the arguments of respective counsel, it is hereby ORDERED that
Plaintiff's complaint is dismissed with prejudice in its entirety.
J.
'_,/aks/probst.po,
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
SHELBY C. DUNMIRE t/d/b/a
BLOOMINGNAIL'S
Plaintiff
NO. 95-437 EQUITY TERM
v.
NICOLE PROBST
Defendant
CIVIL ACTION - EQUITY
DEFENDANT'S PRELIMINARY OBJECTIONS TO PLAINTIFF'S COMPLAINT
AND NOW, comes Defendant, Nicole S. Probst, by and through her
counsel, Hepford, Swartz & Morgan, and files these Preliminary
Objections to Plaintiff's Complaint and in support thereof avers
as follows I
1. Plaintiff. commenced this action by filing a complaint in
the Court of Common Pleas of Cumberland county on January 27, 1995.
2. plaintiff avers that Defendant is employed as a "nail
technician" contrary to the terms of an employment agreement and
is seeking, among other things, an equitable order enjoining
Defendant "from engaging in any business of fering nail care
services in an area within a 25 mile radius of the Plaintiff'S
place of business in (Camp Ilill, Pennsylvania], as a principal,
partner or employee," an equitable order requiring Defendant to
terminate her employment with her current employer, an equitable
order awarding $10,000.00 in damages, and an equitable order
awnrrllng atLornoys' fees.
-
I.s/aks/probst .pOS
A.
Motion
strike
for
leqal
Plaintiff's
Complaint
to
insufficiently of a pleadinq (demurrer).
3. Plaintiff bases her entire claim on a purported contract
containing insufficient consideration which completely lacks
mutuality and is illusory in that it nowhere provides for a
specific wage or sets forth a compensation program for Defendant.
4. Plaintiff bases her entire claim on a purported contract
containing insufficient consideration which completely lacks
mutuality and is illusory in that it permits Plaintiff to fire
Defendant "at any time" for either good cause or "in the event that
business conditions dictate the reduction of the work force by the
employer." Plaintiff's Exhibit A at 2.
5. Plaintiff bases her entire claim on a purported contact
which is clearly unreasonable in its scope as it would preclude
Defendant from working as a simple nail technician or a manicurist,
or even working in a nail salon, within a 25 mile radius of
Plaintiff's place of business in Camp Hill, Pennsylvania, and which
is the equivalent of an area of 1,963.5 square miles.
6. plaintiff bases her entire claim on a purported contract
whlch is clearly unconscionable as it would, if upheld, effectively
/.
I.s/nks/probst,pos
preclude Defendant from any employment of any kind as a simple nail
technician or manicurist in the entire Harrisburg area.
7. Piaintiff bases her entire claim on a purported contract
which, if upheld, would clearly cause an impermissible and
excessive restraint of trade by effectively precluding Defendant
from any elllployment as a simple nail technician in the entire
Harrisburg area, and is therefore directly violative of public
pol icy.
B. Plaintiff in her business of nail care services
unquestionably has no protectable or legitimate business interest
in preventing Defendant from being employed as a simple nail
technician or manicurist.
9. Plaintiff unquestionably has no legitimate interest which
must be protected by a court from any alleged unfair appropriatlon
by Defendant.
WHEREFORE, Defendant requests this Honorable Court enter an
Order dismissing Plaintiff's Complaint in its entirety with
prejudice due to its legal insufficiency.
B. Motion to strike Plaintiff's Complaint for leqal insufficiency
of a pleadinq (demurrerl.
3
.,
l_s/nk,/Drobst,PGs
10. Ptaintiff basis her entire claim on a purported contract.
11. 'J'here would thus exist a full, complete and adequate non-
statutory remedy of law precluding this action ill equity.
WHEREFORE, Defendant requests this I~norable Court enter an
Order dismlssing Plaintiff's complaint in its entirety with
prejudice due to the existence of an adequate non-statutory remedy
at law.
C. Motion to strike for leqal insufficiency of a pleading.
12. In paragraph 14 of Plaintiff's Complaint, Plaintif f avers
that Defendant has "solicited" her customers.
13. Nowhere does Plaintiff aver any facts in support of this
statement, such as how and when such customers were "solicited" or
the number and identity of such customers.
14. Defendant is prejudiced by this gross lack of specificity
in Plaintiff's complaint.
WIIEREFORE, Defendant requests this l~norabJe Court to enter
an Order striking Paragraphs 9 and 14 and subparilgraph (a) of the
ilrI dilmnum clause of Plaintiff's Complaint, or alternatively,
roquiro Plaint! ff to file a more specific pleadiug with regard to
4
.
1.l/ak~/prob't.PO'
Defendant's alleged "solicitation" of Plaintiff':; customers.
D. Motion to strike for leqal insufficiency of a pleading.
15. Plaintiff seeks an equitable order awal:ding "$10,000.00
in liquidated damages."
16. plaintiff avers that Defendant worked for her for a total
of approximately nine months.
17. Plaintiff has nowhere made any attempt to ascertain or
explain her damages, if any.
18. The aforesaid "$10,000.00 in liqUidated damages" is
clearly nothing more then a penalty attempted to be imposed upon
Defendant and is clearly unconscionable.
WHEREFORE,' Defendant requests this Honorable Court to enter
an Order striking subparagraph (d) of the ad damnum clause of
Plaintiff's complaint.
E. Motion to strike for leqal insufficiency at a pleadinq.
19. plaintiff seeks an order awarding attorneys' fees in this
matter.
5
J_I/akl/problt,DOI
20. Plaintif f can point to no legal or f actual authority
supporting her claim for attorneys' fees.
21. There is clearly no support for an award of attorneys'
fees in this case.
WHEREFORE, Defendant requests this Honorable Court to enter
an Order striking subparagraph (e) of the ad damnum clause of
Plaintiff's Complaint.
Respectfully submitted,
HEPFORD, SWARTZ & MORGAN
Date:
2.-f(.... l)~,
.M
Andrew K. Stutzman
Supreme Court I.D. 2922
111 North Front Street
P.O. Box 889
Harrisburg, Pennsylvania 17108-0889
(717) 234-4121
ATTORNEYS FOR DEFENDANT
6
SHELBY C. DUNMIRE
t/d/b/a BLOOMINGNAILS,
PLAINTIFF
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
VS.
NO. 95-437 EQUITY TERM
CIVIL ACTION
EQUITY
NICOLE S. PROBST,
DEFENDANT
PLAINTIFF'S PRELIMIIlARY OBJECTIONS TO DEFENDANT'S
PRELIMINARY OBJECTIONS TO PLAINTIFF'S COMPLAINT
AND NOW, comes the Plaintiff, Shelby C. Dunmire,
t/d/b/a/ Bloomingnails, by and through her attorney, Diane
G. Radcliff, Esquire, and files these Preliminary Objections
to Defendant's Preliminary Objections to Plaintiff's
Complaint as follows:
A. MOTION TO STRIltE DEFENDANT'S PRELIMINARY OBJECTION
A FOR FAILURE TO CONFORM TO LAW OR RULE OF COURT.
1. The Defendant's Preliminary Objection A is an
impermissible demurrer because it raises matters outside of
the scope of Rule 1028 in that:
(a) The objection incorrectly alleges that
under the law the giving of employment constitutes
consideration for the non-competition agreements,
all of which appears on the face of the agreement
and is alleged in the complaint. Use of a
demurrer is limited to those cases where the lack
of consideration is apparent on the face of the
IlIAN.: G. RADCI.IFF
ATTORNF.\,.AT.I.AW
SU8 TRINIII.t: RnAU
(:AMr 1111.1.. I'A 17011
1
pleading. A demurrer may not be used to contest
consideration appearing on the face of the
pleading.
(b) The objection incorrectly raises
affirmative defenses including lack of
consideration not apparent on the face of the
pleading, mutuality, unreasonableness as to scope,
unconscionability, excessive restraint of trade
and lack of legitimate protectable business
interests all of which may not be raised by way of
a preliminary objection, but rather must be plead
as affirmative defenses in a new matter pursuant
to Rule 1030.
WHEREFORE, plaintiff requests this Honorable Court to
strike off and deny Defendant's Preliminary Objection A in
the form of a demurrer.
B. MOTION TO STRIKE DEFENDANT'S PRELIMINARY OBJECTION
B FOR FAILURE TO CONFORM TO LAW OR RULE OF COURT.
2. The Defendant's preliminary Objection B is an
impermissible demurrer because it raises matters outside of
the scope of Rule 1028 in that:
(a) The demurrer is based on the alleged
existence of an adequate remedy at law and,
therefore, is a challenge to the jurisdiction of
IlIANE G. RAIlCJ.lFt'
ATfORNF.\',AT,LAW
SUlI TRINIII,t: ROAn
C;,\"IIII11I.1., IIA 17011
2
the equity side of the court or to the theory or
measure of relief. Such claims are not permitted
to be raised by way of preliminary objection.
WHEREFORE, Pl~intiff requests this Honorable Court to
strike off and deny Defendant's Preliminary Objection B.
C. MOTION TO STRIKE DEFENDANT'S PRELIMINARY OBJECTION
C FOR FAILURE TO CONFORM TO LAW OR RULE OF COURT.
3. The Defendant's Preliminary Objection C is an
impermissible objection in the nature of a motion to strike
or a motion for a more specific pleading because it raises
matters outside of the scope of Rule 1028 in that:
(a) Preliminary objections may not be used
to obtain facts or information from the Plaintiff
of which the Defendant has as much knowledge as
the Plaintiff, which is true in this case since
the offending conduct was solicitation of the
Plaintiff's customers by the Defendant, about
which the Defendant would be as, if not more,
knowledgeable than the Plaintiff.
(b) preliminary objections may not be used
to obtain evidentiary matters, but rather are
limited to advising the Defendant of the issues
the Defendant will meet at trial. A delineation
of the names and telephone numbers of the
IlIANE G. RAIlCLlff
A"-WIINI:\'-AT.I,AW
~H' TM.INUU: IUlAn
(:AMP 11I1.1.. I'A 171111
3
IlIANE G. RAIlCLIFF
ATTORNI:V.AT.I.AII'
'44ft TRINIIU. RfJAU
CA~II' 1111.".1''\ 171111
Plaintiff's customers solicited by the Defendant
is evidentiary in nature and, therefore, properly
obtainable through discovery, not through
preliminary objections.
WHEREFORE, the Plaintiff requests this Honorable Court
to strike off or deny Defendant's Preliminary Objection C.
D. MOTION TO STRIKE DEFENDANT'S PRELIMINARY OBJECTION
D FOR FAILURE TO CONFORM TO LAW OR RULE OF COURT.
4. The Defendant's Preliminary Objection D is an
impermissible objection because it raises matters outside of
the scope of Rule 1028 in that:
'(a) A preliminary objection may not be used
to contest the wrong theory or measure of damages
since the Defendant's objection is based on an
objection to the inclusion of liquidated damages.
That objection is impermissible since it is a
contest as to the theory or measure of damages.
(b) The preliminary objection may not be
used to raise affirmative defenses to a complaint
properly raised in an answer or new matter. A
claim that the liquidated damages claimed are a
penalty would be an affirmative defense which can
only be determined by exploring the merits of this
case and, therefore, it is impermissible to raise
4
mAN.: G. "AIlCI.IH'
ATrORNF.\'.AT.I.AW
'HA TRINUU. "(lAU
(:AMI'IIII.1" I'A 171111
them in a preliminary objection.
(c) A preliminary objection in the nature of
a demurrer may not be used to strike off a portion
of the claims, but rather is limited to testing
the legal sufficiency of the pleading as a whole.
since requesting a striking of the liquidated
damages claims pertains to only a portion of the
claim, not the claim as a whole, the Defendant may
not seek that this claim be stricken by way of
preliminary objection.
(d) A preliminary objection in the nature of
a motion to strike may not be used to strike off a
measure or theory of damages, the applicability of
that rule being limited in scope to matters of
form not substance. Since the objection pertains
to the measure of damages it goes to substance not
form and, therefore, is impermissible as a motion
to strike.
WHEREFORE, the Plaintiff requests this Court to strike
off and deny Defendant's Preliminary Objection D.
E, MOTION TO STRIKE DEFENDANT'S PRELIMINARY OBJECTION
E FOR FAILURE TO CONFORM TO LAN OR RULE OF COURT.
5. The Defendant's preliminary Objection E to strike
the Plaintiff's claims for attorney's fees is an
5
impermissible preliminary objection in that:
(a) A preliminary objection may not be used
to contest the nature or theory of relief or
damages claimed. Since the Defendant's objection
is as to whether or not Plaintiff's damages can
include attorney's fees, that objection goes to
the nature or measure of the damages and that
objection is impermissible.
(b) The preliminary objection may not be
used to raise affirmative defenses to a complaint
properly raised in an answer or new matter. A
claim that the plaintiff has no right to
attorney's fees would be an affirmative defense
and it is impermissible to raise this defense in a
preliminary objection.
(C) A preliminary objection in the nature of
a demurrer may not be used to strike off a portion
of the claims, but rather is limited to testing
the legal sufficiency as a whole. Since the
Defendant's objection only contests the right to
attorney's fees and not whether the pleading as a
whole states a cause of action upon which rel\ef
can be granted the objection is impermissible as
it seeks to strike off a portion of the claim
rather than the claim as a whole.
DIANE G. RAIICI,IU'
A,.ORNt:\'.AT.I.AW
!H81'RINIII.l: MilAn
('.AMP 11I1.1..1',\ 17011
6
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(d) A preliminary objection in the nature of
a motion to strike may not be used to strike off a
measure or theory of damages, the applicability of
that rule being limited in scope to matters of
form, not substance. Since the right to
attorney's fees goes to substance (merits) not
form and is impermissible as a motion to strike.
WHEREFORE, the Plaintiff requests this Honorable Court
to strike off and deny Defendant's preliminary Objection E.
Respectfully submitted,
G. RADC F, ESQUIR
Trin le Road
Camp . , PA 17011
(717) 737-0100
I.D. No. 32112
Attorney for Plaintiff
DIANE G. RAIlCl.IH
ATTlIRNf.V.AT.I,AW
UUI TMINUI.I: ROAn
(:A~II' 11I1.1., I'A 17UII
7
DIANE C. RADCLIff
ATTORNEY.AT.LAW
JHI TRINhU. ROAn
CAMP IIII.L. PA 17011
CERTIFICATE OF SERVICE
I hereby certify that I am this day serving a copy of the
foregoing document upon the persons and in the manner
indicated below, which service satisfies the requirements of
the Pennsylvania Rules of Civil procedure, by depositing a
copy of the same in the United states mail, Shiremanstown,
Pennsylvania, with first-class postage, prepaid, as follows:
Andrew K. stutzman, Esquire
HEPFORD, SWARTZ'& MORGAN
III North Front Street
P.O. Box 889
Harrisburg, PA 17108-0889
~
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DI CLIFF, ESQUIRE
34 8 Road
Cam 11 A 17011
(717) 737-0100
I.D. No. 32112
Dated: 3/ftJ/QS
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PRAECIPE FOR LISTING CASE FOR ARGU~IENT
l~lust be tYpewritten :ll1d 5ubmitted In duplic:ltc I
TO TIlE PROTHONOTARY,'OF Ct:MBERL..\.1'1D COU:-ITY:
Ple:ue !Ist the within matter for :he next:
o P:e.Tri:1i Argument C~Urt
[[j Argument Ccurt
-------------------------------------
CAPTION OF CASE ,
(entire c::\pdon must be stated In full)
SHELBY c. DUNMIRE, t/d/b/a
BLOOMINGN'lIILS'
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(Det"endllllt)
vs.
CfS
:-Ie. *-437 Equity Term
1. Sute matter to be 3f3Ued (L e.. pl:1lntlffs modon (or new tri:l1.
defendant's dernumr to ,om!'Wnt. ttc.):
Defendant's Preliminary Objections to Plaintiff'S Complaint and
'Plaintiff's Preliminary Objections to Defendant's Preliminary
., Identlfycowue! who wUl ugue "ue: Objections to plaintiff's Complaint
(.) for pla.lntU"i: Diane G. Radcl i if, Esquire
Address: 3446 -Trindle Road, Camp Hill, PA 17011
(b) fordefentbnt: Andrew K. Stutzman, Esqui're'
Address: 111 N. Front Street, Harrisburg, PA 17106-0669
3. I will notify :ill p.rties in writing wi:llin two days Ill.t WS '::LIe has beer:
listed for ugument._
4. Argument Court 03tel May 31, 1995
C3ll of Argument List D3t
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I,A W OFFlCr.~
HEPFORD. SWARTZ & MORGAN
III NORTIl FIIONT STRnT
r:o. BOlCll'89
IIARRISBURG, rENNsVI.VANIA 17101,0119
TEI.EPIIONE 717 ZJ4-4m
/"' 1AY 19 1995
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IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
SHELBY C. DUNMIRE tibia
BLOOMINGNAIL'S
No. 95-437 EQUITY TERM
Plaintiff
v.
CIVIL ACTION - EQUITY
N~COLE PROBST
Defendant
DEFENDANT'S BRIEF IN SUPPORT OF ITS PRELIMINARY
OBJECTIONS AND OPPOSING THOSE OF PLAINTIFF
I. STATEMENT OF FACTS AND PROCEDURAL HISTORY
This action in equity arises out of an "employment agreement"
constituting a restrictive covenant and containing a liquidated
damages clause for $10,000.
Said agreement is attached to
Plaintiff's Complaint as Exhibit A.
The agreement provided
employment for one year as a full-time manicurist in a nail salon.
plaintiff contends that Defendant has now violated said agreement
by work'ing as a "nail technician" for another nail salon. See,
!!..&., Plaintiff's Complaint, 113. Plaintiff seeks, among other
things, an equitable order enjoining Defendant from working in any
capacity for any business offering "nail services" within a "25
mile radius of any salon owned by [Plaintiff], . . . directly or
indirectly," an equitable order requiring Defendant to terminate
all employment with her current employer, an equitable order
awarding $10,000 in "liquidated damages", and an equitable order
awarding attorneys' fees.
.
Defendant accordingly filed timely preliminary objections
whereupon plaintiff responded with preliminary objections to
Defendant's preliminary objections.
I,
,
(
i
I
,
f
II. QUESTIONS PRESENTED
A. Is Plaintiff's pleading legally insufficient where it
seeks to preclude Defendant from working in any capacity for "any
business offering nail care services in an area within a 25 mile
radius of any salon owned by [Plaintiff], directly or
indirectly" ?
Suggested answer in the affirmative.
B. Should Plaintiff's request, for an equitable order awarding
$10,000 in "liquidated damages" be struck where said claim is based
solely on a contractual and adequate non-statutory remedy at law,
notwithstanding that plaintiff is proceeding exclusively in equity,
or should Plaintiff's claims for equitable relief be struck as
there therefore exists an adequate remedy at law?
suggested answer in the affirmative.
c. Should Plaintiff's averment that Defendant has "solicited"
Plaintiff's customers be either struck or' be given greater
specificity where said allegation is totally unsupported by any
facts in support thereof and Defendant is prejudiced thereby?
~ Suggested answer in the affirmative.
D. Should Plaintiff's request for an award of attorney's fees
be struck where no legal or factual authority exists to support
said claim?
suggested answer in the affirmative.
I II . ARGUMENT
A. Plaintiff's pleading is legally insufficient as it seeks
to preclude Defendant from working in any capacity for "any
business offering nail care services in an area within a 25 mile
radius of any salon owned by [Plaintiff], directly or
indirectly.
2
,-
..
The standard for considering Defendant's demurrer is well-
settled: "[Tlhe question presented by the demurrer is whether, on
the facts averr.ed, the law says with certainty that no r.ecovery is
possible."
Cumberland Valley School Dist. v. Hall-Kimbrell
Environmental Services, Inc., 433 Pa. Super. Ct. 38, 40, 639 A.2d
1199 (1994) (quoting Fof!yqen v. R. Zemel, M.D., 420 Pa. Super. Ct.
18, 32, 615 A.2d 1345 (1992), alloc. den., 535 Pa. 634 (1993)).
In addition,
A demurrer admits the truth of the relevant and material facts
averred in the pleading demurred to. It does not admit their
sufficiency, nor does it admit irrelevant and immaterial
matter pleaded, nor the legal conclusions ., sought to be
drawn from the facts.
Henzel v. Patterson Buildinq & Loan Ass'n. No.2, 128 Pa. Super.
Ct. 531, 532, 194 A. 683 (1937) (emphasis in original). See also
Whitmer v. Bell Telephone Co. of pa., 361 Pa. Super. Ct. 282, 286
n.3, 522 A.2d 584 (1987) (a demurrer does not admit legal
conclusions). Only "reasonable inferences" from the facts may be
accepted as true. Id. Thus, legal allegations are not admitted,
and a demurrer will be sustained if the facts pleaded and their
reasonable inferences cannot support Plaintiff's action.
As stated, Plaintiff's claim is entirely based on a
restrictive covenant which attempts to preclude Defendant from
being employed in any capacity by any business providing "nail
services" within a "25 mile radius of any salon owned by
[Plaintiff I, . . .. directly or indirectly." Plaintiff's Exhibit
A at 4.
As Plaintiff's current store is located in Camp Hill,
Pennsylvania, Plaintiff's covenant precludes Plaintiff from work
:.
3
",,'-----
in the entire Harrisburg area, including Carlisle and Hershey, or
an area of 1,963.5 square roilea, based on the area of the 25 mile
radius. In addition, as stated, Plaintiff concedes Defendant now
works merely as a "nail technician" which she contends violates the
agreement, notwithstanding that Plaintiff also concedes Defendant
previously worked for her as a full-time manicurist, as was
provided in the agreement. Clearly this is an absurd restriction
and Plaintiff's cause of action is ridiculous.
It is well-settled that "[b]ecause of the inherently unequal
bargaining positions of the parties, [PennsylvanIa courts] have
consistently subjected covenants of non-competition between
employees and their employers to close scrutiny." ReadinQ Aviation
Service, Inc. v. Bertolet, 454 Pa. 488, 492, 311 A.2d 628 (1973).
See also Davis v. Buckham, 80 Pa. Super. Ct. 106, 114, 421 A.2d 427
(1980) ("[C]ovenants not to compete must be strictly construed.)
This is so "because restrictive covenants are a partial restraint
upon the free exercise of trade, [thus courts] have frequently
stated that they should be strictly construed, particularly when
such contracts are ancillary'to an employment agreement. .
"
. .
Hayes v. Altman, 438 Pa. 451, 454, 266 A.2d 269 (1970). In
addition,
A general covenant not to compete . . . imposes a greater
hardship upon an employee than upon a seller of a business.
An employee is prevented from practicing his trade or skill,
or from utilizing his experience in the particular type of
work with which he is familiar. lie may encounter difficulty
in tranaferring his particular experience and training in
another line of work, and hence his ability to earn a
livelihood is seriously impaired. Further, the employee will
usually have few resources in reserve to fall back upon, and
he may find it difficult to uproot himself and his family in
4
.'
order to move to a location beyond the area of potential
competition with his former employer. Contrariwise, the
mobility of capital permits the businessman to utilize his
funds in other localities and in other industries.
Id. at 454-55, 266 A.2d 269 (quoting Morgan's 1I0me Equipment Corp.
v. Martucci, 390 Pa. 6lB, 631-32,136 A.2d B3B (1957)). Clearly a
restriction which expressly precludes Plaintiff from any work
whatsoever for any business providing any nail services within
essentially this entire metropolitan area is ridiculously
unreasonable and unconscionable on its face. plaintiff concedes
Defendant is only presently working as a simple "nail technician"
and not even as a full-time manicurist as she did when working for
plaintiff and as stated in the agreement.
No inference from
Plaintiff's facts could reasonably justify her cause of action
seeking Plaintiff to be barred from any work in this area. Any
ruling to the contrary suggests a significant injustice as it would
essentially force Plaintiff to move out of the area if she wanted
to continue in her chosen field as even a simple nail technician,
as Plaintiff avers she currently does.
,Y
Indeed, plaintiff avers that Defendant currently works only
as a "nail technician", and not even as a full-time manicurist as
she was when employed by Plaintiff and as set forth in the
agreement. Accordingly,
In most employments, restrictions on working in any capacity
for a competitor will be viewed as imposing a restraint more
extensive than any legitimate protectible interest of the
employer.
20 P.D.F. 3d at 729. Accord, 54 Am. Jur. 2d, Monopolies, Etc.
554B. Thus, the fact that Plaintiff seeks to preclude Defendant
5
.
,v
from now working as n simple nail technician when Defendant worked
for Plaintiff as a (ull-time manicurist compellingly demonstrat,es
that this "agreement" cannot be enforced in any way under any
reasonable inference of the Plaintiff's well-pleaded facts.
This sor.t of gratuitous overbreadth militates against
enforcement because it indicates an intent to oppress the
employee and/or to foster a monopoly, either of which is an
illegitimate purpose. An employer who extracts a covenant in
furtherance of such a purpose comes to the Court of Equity
with unclean hands and is, therefore, not entitled to
equitable enforcemont of tho covonant.
Peripheral Dynamica, 254 I'a. Supor. Ct. at 322, 385 A.2d 1354
(Sidco Paper Company v. Aaron, 465 Pa. 586, 599, 351 A.2d 250, 257
(1976)). Likowiao, "ovorly broad covonants not to compete deprive
a man of hia opportunity to make a living, and are thus
unreaaonablo Iwd all a rooult unenforceable in equity." Krauss, 434
Pa. at 407, 254 A.2d 1. Cf. Davis, 280 Pa. Super. Ct. at 114, 421
A.2d 427 ("[C)ovonanto not to compete must be strictly
construod."). In this rogard, it is also important to note that
tho agroomont only provides for reformation of its time and
goographical llml.tatlonll and makes no provision for reformation of
tho cllpllc.\.ty of omploymont. 'rhus, in light of the foregoing, an
agroomont which on its faco attempts to impose such a ridiculous
rootrIlltion Ilnd procludo Dofendant from even ~Iorking as a nail
techn Lc Illn whon ahe formorly worked as a full-time manicurist,
cllnnot nuntllin Plaintiff's attempted cause of action. Similarly,
it in hard to 1100 how, undor any reasonable inference and in light
of thl! aforolll1l,d rulon of low, that Defendant could even be
violating tho 11l]t:'oomont when plaintiff concedes Defendant only
.
6
presently works as a nail technician, yet was previously employed
as and, as set forth in the agreement, as a full-time manicurist.
Moreover,
"there
is
additional
requirement
for
an
enforceability of such [restrictive'] covenants
. That is,
. . .
such covenants must serve to protect a legitimate, i.e. a legally
protectible, interest of the employer."
Thermo-Guard, I nc . v.
Cochran, 408 Pa. Super. Ct. 54,64, 596 A.2d 188 (1991). See also
Krauss v. M.L. Claster & Sons, Inc., 434 Pa. 403, 407, 254 A.2d 1
(1969); Peripheral Dynamics v. Holdsworth, 254 Pa. Super. Ct. 310,
316, 385 A.2d 1354 (1978) (citing cases). Thus,
If an employer does not have a legitimate business interest
in preventing a former employee from competing honestly, an
employee anti-competition covenant may not be enforced.
Rather, to obtain enforcement of an anti-competitive covenant
in an employment agreement, the employer must demonstrate that
he or she has an interest which must be protected from unfair
appropriation by ,former employees.
20 P.O.F. 3d 705, 717 (emphasis in original). In this regard,
That an employee has no special skill tends to show the
unreasonableness of his post-employment anti-competitive
covenant. Moreover, an employer cannot secure enforcement of
an anti-competitive covenant to prevent the employee from
using the skill or knowledge acquired or improved during the
employment, even through a course of instruction in the
employment.
54 Am. Jur. 2d, Monopolies, Etc. S548. In addition,
To establish that the employee's services are special, unique,
or extraordinary within the meaning of this rule, it will not
suffice to show merely that the employee excels at his or her
work or that the employee's performance is of high value to
the employer. At the very least, it must appear that the
employee's services are of such a character as to make
replacement of the employee virtually impossible. Moreover,
an employer cannot secure enforcement of an anti-competitive
covenant to prevent the employee from using the skill and
knowledge acquired or improved during the employment, even if
the employee was trained or instructed by the employer. As
stated by one court, "[i]t is permissible for one to use the
7
~
.,
oxpodonco nnd knowlodge gained during a period of employment.
Jo:xporlorwo nnd knowledgo thus acquired as an employee does not
hocomo thl! pl:oporty of the employer."
. . . I"or oxample, it has been held that there is no
protoctlhlo employer interest in the specialized skills of
omployooll l.n common occupations such as auto mechanic, machine
tool oporntor, or paralegal, regardless of the employee's
lovol o[ proflcloncy. Other employees whose services have
hooll hold 1I0t to be unique, special, or extraordinary include
nn 0119 Lnoer specializing In applications for industrial mixing
oqul.pmont, n prill tor of fabric designs, a theatrJ.cal booking
ngollt, nnd n okilled watch artisan.
20 P.O.I'. 3d at 7?6-727 (footnotes omitted).
Accordingly, with
nil due reopoct to the parties, there should be little question,
under OilY [actual inference, that simple nail care work is not so
"opecinl, unique, or extraordinary" as to be legally protectible
by this 1I0norable Court.
In ndditioll, "[t]he absence of trade secrets [also] tends to
Dhow the unreasonableness of the covenant."
54 Am. Jur. 2d,
Monopolles, Etc. S547. In this regard, "[ t]o deserve protection,
, . . the secrets must be more than the general secrets of the
trado not known to the general publiCI they must be the employer's
oxe;lusivo secrets." rd. 'fhe Restatement of 'l'orts defines a "trade
secret" as "allY formula, pattern, device or compilation of
information that is used in one's business," from which the owner
derives a competitive advantage over those without the information
and which is maintained by the owner as a secret. See Restatement
of Torts S757, comment b (not superseded by Restatement (Second)
of 'l'orts).
'l'hus, a mere general knowledge of the employer's business, or
training of an employee in the employer's methods, does not
ohow accoss to any protectible trade secretsl and the desire
of an employer to prevent an employee from using common
o
p
information gained during employment is not sufficient to
justify enforcement of an employee's covenant not to compete.
20 P.O.F. 3d at 719. Again, under any reasonable inference of
Plaintiff's well-pleaded facts, Plaintiff surely has no such
legally protectible interest as to justify her cause of action.
Furthermore, Plaintiff avers that Defendant only worked full-
time for her from April 1, 1994 until November 23, 1994, or a
period of under eight months, and previously worked on only a
temporary basis. In this regard, note:
In some cases, depending on the legitimate business interests
of the former employer sought to be protected, the duration
of employment may be a factor to be considered, with a brief
term of employment tending to show the unreasonableness of a
non-competition covenant in appropriate circumstances.
20 P.O.F. 3d at 737. Thus, again, under any reasonable inference
of Plaintiff's well-pleaded facts, Plaintiff's restrictions sought
are unquestionably unreasonable.
Furthermore, it is noteworthy that said employment agreement
does not include any "c..Jmpensation program" as, although such a
"compensation program" is referenced in said agreement, it is
nowhere attached to the agreement or Plaintiff's Complaint and,
indeed, does not even exist. 'Similarly, the contract permits
Plaintiff to fire Defend!1llt "at any time" for either good cause or
"in the event that business conditions dictate the reduction of the
work force by the employer." Thus, the agreen'ent also fails on its
face for want of consideration and is illusory.
,"
B. Plaintiff's request for an equitable order awarding
$10,000 in "liquidated damages" must be struck as said claim is
based solely on a contractual and adequate non-statutory remedy at
law, notwithstanding that Plaintiff is proceeding exclusively in
9
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equity, or alternatively, Plaintiff's claims for equitable relief
must be struck as there therefore exists an adequate remedy at law.
As stated, Plaintiff, in its action in equity, seeks
"liquidated damages" in the amount of Ten Thousand Dollars
($10,000) based on an express clause of the agreement. See Exhibit
A at 5. Thus, there surely exists an adequate remedy at law or
Plaintiff's application of the "liquidated damages" clause is
nothing more than a specious attempt to somehow expand this Court's
equitable powers by contract. In other words, Plaintiff wrongfully
and disingenuously seeks to obtain damages at law by bootstrapping
and masking them into a claim purportedly for "equitable" relief.
Indeed, this exact issue was pointed out, although not decided, by
the Court in Worldwide Auditinq Services, Inc. v. Richter, 402 Pa.
Super. Ct. 584, 587 A.2d 772 (1991) wherein the Court stated:
It is well settled that, as an equitable remedy, an injunction
is only available if the party seeking relief has no adequate
remedy at law. The (restrictive] covenant contains a clause
providing a formula for the computation of damages if
(Defendant] breached, as well as a clause providing that such
damages are in addition to any other remedy (Plaintiff] is
entitled to, including injunctive relief. If parties
specifically agree to a measure of damages in instances where
exact computation of damages will be difficult, it is arguable
that they have expressly provided an adequate remedy rendering
injunctive relief inappropriate. Further, we note that it
would be anomalous to allow private parties to expand the.
application of a court's equitable powers by contract. As
neither party has addressed the issue, (however], we deem it
waived . . .
lu. at 586 n. 1, 587 A.2d 772. Thus, plaintiff's demand for an
equitable award of $10,000 concededly based solely on the
contract's liquidated damages clause must either be struck or there
surely exists a full, complete and adequate non-statutory remedy
10
.
at law requiring that Plaintiff's requests for equitable relief be
struck by this Honorable Court. Cf, Pa. R.C.P. No. 1509 ("('rlhe
existence of a full, complete and adequate non-statutory remedy at
law shall be raised by preliminary objection.").
In addition,
Defendant also points out that a $10,000 damages provision for one
year's employment in a nail salon is clearly nothing more than an
in terrorem clause designed to frighten Defendant into abiding by
these ridiculous restrictions and should not be upheld.
c. Should plaintiff's averment that Defendant has "solicited"
plaintiff's customers be either struck or be given greater
specificity as said allegation is totally unsupported by any facts
in support thereof and Defendant is prejudiced thereby.
In paragraph 14 of plaintiff's Complaint, plaintiff avers that
Defendant has "solicited" her "customers" and further seeks
eguitable relief on this allegation. However, Plaintiff offers no
facts in support of this statement, such as how and when such
"customers" were "solicited", the. number or the identity of such
"customers" or even facts indicating whether Defendant had ever
even previously had contact with such "customers." Such a bald and
conclusory allegation does not in any way make this statement a
fact and Defendant is prejudiced thereby. In this regard,
A complaint must not only give notice to the Defendant of the
claim being asserted but it must summarize the facts essential
to support the claim. A Plaintiff cannot escape this duty by
a general averment that the facts are in the possession of the
Defendant.
Burnside v. Abbott Laboratories, 351 Par Super. Ct. 264, 277, 505
A.2d 973 (1985) (citations omitted).
11
.
.D. Plaintiff's requcst for
be struck as no legal or factual
claim.
an award of attorney's feos must
authority cxists to support said
Plaintif f seeks an order awarding attorney's fees in this
matter, notwithstanding that there exists no legal or factual
authority supporting such claim.
It is well settled that
"Plaintiff cannot recover attorney's fees from the opposing party
unless a statute or an agreement between the parties provides for
attorney's fees." Roycroft v. Nationwide Mutual Fire Ins., 20 D.
& C. 4th 224, 232 (York 1993). Thus, the court in Roycroft struck
Plaintiff's demands for attorney's fees. Id. Indeed, the court
in AMP, Inc. v. McCauqhey, 38 D & C 2d l09 (Luz. 1966) considered
Defendant's motion to strike Plaintiff's claim for attorney's fees
where Plaintiff was seeking to enforce a restrictive invention
agreement essentially like the restrictive employment agreement at
issue herein. The court concluded:
We will. grant Defendant's motion to strike insofar as
it relates to the claim for attorney's fees set out in
subparagraph (h) of the complaint. We know of no rule of law
which permits the recovery of attorney's fees in the factual
situation before us and Plaintiff has cited none.
Id. at 116.
Accordingly, Plaintiff's claim for attorney's fees
clearly must be struck.
lV. CONCLUSION
For the foregoing reasons, Defendant's Preliminary Objections
to Plaintiff's Complaint must be sustained.
.Y
12
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Respectfully submitted,
HEPFORD, SWA
By
y
Andrew St tzman
Attorney I.D. #72922
111 North Front street
P.O. Box 889
Harrisburg, PA 17108-0889
(717) 234-4121
A'l"l'OHNEY FOR DEFENDAN'l'
Dated: May 19, 1995
13
CERTIFICATE OF SERVICE
I, Maureen Brann, for the firm of lIepford, Swartz & Morgan,
attorneys for Defendant, hereby certify that I have this 19th day
of May, 1995 served the within document, by depositing a copy of
the same in the United States mail, postage prepaid, at Ilarrisburg,
Pennsylvania, addressed as follows:
Diane G. Radcliff, Esq.
3448 Trindlo Road
Camp Hill, PA 17011
,.Il~..A-....f\-l .tAl/VI\.
Maureen Brann, Secretary for
Andrew K. Stutzman
.Y
14
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DIANE G.' RADCLIFF
,ATI'ORNEii AT LAw
5448 Trlndlo Road
Camp HlII. PAJ701l
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-
DIANE G. IlADCLlFF
ATTORNEY.AT.J.AW
SHI TRINIlI.E ROAn
CAMP 1111.1.. PA 11011
SHELBY C. DUNMIRE
t/d/b/a BLOOMINGNAILS,
PLAINTIFF
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
vs.
NO. 95-437 EQUITY TERM
CIVIL ACTION
EQUITY
NICOLE S. PROBST,
DEFENDANT
PLAINTIFF'S BRIEF IN OPPOSITION TO DEFENDANT'S
PRELIMINARY OBJECTIONS TO PLAINTIFF'S COMPLAINT AND
IN SUPPORT OF PLAINTIFF'S PRELIMINARY OBJECTIONS TO
DEFENDANT'S PRELIMINARY OBJECTIONS
/'
I.
FACTUAL AND PROCEDURAL HISTORY.
The Plaintiff, Shelby C. Dunmire, is the owner of a nail
and skin care business trading as Bloomingnails, which she
operates at 4401 Carlisle Pike, Camp Hill, Pennsylvania. On
March 1, 1994, the Plaintiff employed the Defendant, Nicole S.
probst, in a temporary capacity as a trainee manicurist. On
April 1, 1994, the Plaintiff employed the Defendant as a full
time manicurist. Concurrently with that full time employment
the parties entered into an employment contract which included
a provisions prohibiting the Defendant from soliciting the
Plaintiff's customers or engaging in competition with the
Plaintiff within a twenty-five mile radius for a period of one
year following termination of employment.
The employment
agreement also included a liquidated damages clause requiring
the Defendant to pay the Plaintiff $IO,OOO.OO if ehe quit her
employment without cause after having received training from
the Plaintiff.
1
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On November 23, 1994, the Defendant terminated her
employment with the Plaintiff.
Thereafter, commencing on
November 30, 1994, the Defendant began competing with the
Plaintiff within the restricted twenty-five mile radius. The
Defendant also began soliciting the plaintiff's customers.
On January 27, 1995, the Plaintiff initiated the within
lawsuit against the Defendant seeking injunctive relief and
monetary damages.
On or about February is, 1995, the
Defendant filed five preliminary objections to the Plaintiff's
Complaint.
On March 6, 1995, the Plaintiff filed five
Preliminary Objections to the Defendant's preliminary
objections.
Both sets of preliminary objections have been listed for
argument. Since the issues in the Plaintiff's and Defendant's
preliminary objections are intertwined, both factually and
legally, the Plaintiff has combined her position as to both
sets of objections into a single brief. The Plaintiff is,
therefore, submitting this brief in opposition to the
Defendant's preliminary Obj ections and in support of the
Plaintiff's preliminary Objections.
DIANE C. RADCLlFt'
ATTORNEY.AT.LAW
sus TRINnLt ROAn
CAMP IIIt.L. PA 17011
2
II. ISSUES PRESENTED.
(A) CAN A DEMURRER BE SUSTAINED WHERE IT IS BASED
ON CONTRACTUAL LACK OF CONSIDERATION,
UNCONSCIONABILITY OR OTHER MATTERS PROPERLY
RAISED AS AFFIRMATIVE DEFENSES?
SUGGESTED ANSWER: NO
(B) CAN A PRELIMINARY OBJECTION BE USED TO CONTEST
THE JURISDICTION OF THE EQUITY SIDE OF THE
COURT?
SUGGESTED ANSWER: NO
(C) CAN A PRELIMINARY OBJECTION BE USED TO CONTEST
EVIDENTIARY MATTERS OVER WHICH THE DEFENDANT
HAS AS MUCH KNOWLEDGE AS THE PLAINTIFF?
SUGGESTED ANSWER: NO
(D) CAN A PRELIMINARY OBJECTION BE USED TO CONTEST
THE PLAINTIFF'S RIGHT TO LIQUIDATED DAMAGES?
SUGGESTED ANSWER: NO
(E) CAN A PRELIMINARY OBJECTION BE USED TO CONTEST
THE PLAINTIFF'S RIGHT TO ATTORNEY FEES?
SUGGESTED ANSWER: NO
DIANE C. RADCLIFF
ATTORNEY.AT.LAW
!UlI TRINIlI.E ROAn
CAMP 1111.1., PA 17011
3
I II. ARGUMENT.
(A) A DEMURRER CANNOT BE USED TO CONTEST A
CONTRACT'S LACK OF CONSIDERATION,
UNCONSCIONABILITY OR OTHER MATTERS PROPERLY
RAISED AS AFFIRMATIVE DEFENSES.
It is well settled law that the preliminary objections
available to a party are limited to those specified in Rule
l028 of the Pennsylvania Rules of Civil Procedure. Matters
which do not fall within the purview of that Rule are
impermissible. Lehioh Vallev Transit Co. v. Yatch, 75 D & C
381 (1950). Where a party has improperly raised a preliminary
objection the proper method of challenging that impropriety is
by way of a preliminary objection. Farlacci v. Beaver Countv
Industrial Develooment Authoritv, 510 Pa, 589, 511 A.2d 757
(1986). If sustained, then the original preliminary objection
should be stricken due to its failure to conform with this
rule of court.
Intertwined with the right to contest the legal propriety
of a preliminary objection is the right to contest the merits
of a preliminary objection itself.
In that contest if a
preliminary objection lacks merit it likewise must be denied.
Therefore, in reviewing the Defendant's first preliminary
objection and each of the remaining four preliminary
objections, this court must decide whether or not each
objection is both permissible under Rule 1028 and meritorious.
DIANE G. RADCI.IFF
ATIORNf.V.AT.I.AW
SU8 TRINh..r. RUAh
CAMr 111I.1'1 rA 17011
4
The Defendant's first Preliminary Objection is in the
nature of a demurrer. A demurrer is an assertion that the
complaint does not set forth a cause of action upon which
relief can be granted. Binswanaer v. Levv, 311 Pa. Super. 41,
457 A.2d 103 (1983). In order to sustain a demurrer it is
essential that the pleading indicate on its face that the
claim cannot be sustained.
County of 'Al1eahenv v.
Commonwealth, 507 Pa, 360, 490 A.2d 402 (1985); later
proceeding 517 Pa, 483, 538 A.2d 873; later appeal 518 Pa.
556, 544 A.2d 1305. A demurrer should be granted only where
there is no doubt or uncertainty that the Plaintiff cannot win
on the merits. rg.
In determining the merits of a demurrer, the objecting
party admits all well pleaded facts and all inferences fairly
deducible therefrom. Matters outside of the pleadings cannot
be considered by the court. Linda Coal and Suoolv Co. v. Tasa
Coal Co., 416 Pa. 97, 204 A.2d 451 (1964).
In paragraphs 3 and 4 of the Defendant's first
Preliminary Objection the Defendant claims that the
Plaintiff's Complaint should be dismissed because the contract
upon which the Plaintiff's claim rests lacks consideration in
that no specific wage or compensation program was set forth in
that contract and because the Defendant's employment could be
terminated due to good cause or change in business conditions.
In raising these matters the Defendant has misinterpreted the
DIANE C. RADCLIFF
ATTORNEV.AT.LAW
SUlI TRINnu: ROAn
CAMP 1111.1.. FA. 17011
5
meaning "consideration" as it applies to restrictive covenants
in employment contracts. As held in Modern Laundrv and Drv
Cleanino v. Farner, 370 Pa, Super. 288, 536 A.2d 409 (1988)
and Beneficial Finance Comoanv V. Becker, 422 Pa. 531, 222
A.2d 873 (1966), a restrictive covenant contained in a
contract for employment is supported by valid consideration
and orima facia enforceable if it is an auxiliary to the
taking of employment. Therefore, it is the giving and taking
of employment that constitutes the consideration for the
restrictive covenant, and not toe amount of wages paid or the
duration of that employment. Since the complaint on its face
clearly alleges the giving of employment a demurrer based on
a lack of consideration cannot be sustained.
Furthermore, this portion of the demurrer must be
stricken because it is an impermissible demurrer under Rule
1028. Under that Rule a demurrer may not be used to attack
the want or failure of consideration not apparent on the face
of the complaint.
Intearated Financial . svstems Ltd. V.
Grissinoer, 96 Dauphin Co. Rep. 245 (1974).
Thus, since
consideration appears on the face of the complaint from the
giving of employment and in the payment of wages (paragraph 6
of Plaintiff's Complaint) and since mutuality of rights as to
termination also appear in this pleading (Exhibit ""A" page 2
subparagraph c) there is no lack of consideration apparent on
the face of the pleading and the demurrer is, therefore,
DIANE G. RADCLIFF
ATIORNEY.AT.LAW
SHe TRINtJU: RoAn
CA~tll 11I1.1., IIA 17011
6
impermissible under Rule 1028 and must be denied.
In paragraphs 5 and 6 of the Defendant's first
preliminary Objection the Defendant has claimed that the
Complaint should be dismissed because the geographic scope of
the underlying restrictive covenant (twenty-five miles) is
clearly unreasonable and unconscionable. This again is an
impermissible use of a demurrer. The determination of whether
or not the geographic scope of a restrictive covenant is
unreasonable or unconscionable can only be made after
reviewing all of the facts in a case.
To determine
reasonableness as to scope the court must look at the area in
which the Plaintiff operates her business to see if the
geographic scope of the restriction is reasonably necessary
for her protection.
Jacobson & Companv v. International
Environmental Corp., 427 Pa. 439, 235 A.2d 612 (1967). Even
if the geographic territory is overly broad, the court is
empowered to limit its effectiveness to that which is
necessary to protect the employer. Bark-Lee Mobile Frame Co.
v. Hoot, 416 Pa, 222, 206 A.2d 59 (1965); Sidco Paper Company
v. Aaron, 465 Pa, 586, 351 A.2d 250 (l976).
Therefore, a
determination as to reasonableness cannot be made at this time
by way of preliminary injunction, but rather must wait until
the facts of this case are further developed at trial. This
would include, but not be limited to, a determination of the
area in which the Plaintiff draws her customers and,
DIANE G. RADCLIFF
ATTORNEY.AT.LAW
SHa TRINllI.E ROAn
c.Ulrllll.l..rA 17011
7
therefore, the area in which she requires protection from
competition. Thus since the Defendant's first Preliminary
Objection goes to the merits of the case which can only be
determined by further development of the facts, it is outside
of the scope of permissible objections and must be raised in
some other manner. Dirienzo v. Verna, 13 80m. Leg. J. 283
(1947); McHale v. Antonio, 71 Luz. Leg. Reg. Rep. 54 (198l).
Furthermore, the Defendant's demurrer is contrary to the
facts admitted by the demurrer in the Complaint. In paragraph
3 of the Complaint the Plaintiff alleges she operates within
the Camp Hill, Mechanicsburg and surrounding areas. In
paragraph 13 she alleges that the Defendant is wrongfully
competing with her in Mechanicsburg, Pennsylvania.
Thus,
since the court is empowered to limit the effective geographic
scope of a restrictive covenant to that which is necessary to
protect the Plaintiff's business interest, it is clear that
the Complaint sets forth a good cause of action as the
Defendant is admittedly competing within the very area where
the Plaintiff is doing business and, therefore, at the very
least the Plaintiff has alleged a protectable interest in that
area.
Moreover, this portion of the Defendant's demurrer is
impermissible under Rule 1028 being outside of the scope of
that rule.
A demurrer may not be utilized to contest the
unreasonableness or unconscionability of a contract.
DIANE G. RADCLIff
ATTORNEY.AT.LAW
SHS TRINIJI.F. ROAU
CAMP 1111.1.. P^ 11011
8
Fredericks v. Hamm, 45 D & C 2d 687 (1968). A claim as to
unreasonableness and unconscionability as set forth in these
two paragraphs clearly is not allowed to be raised as a
demurrer.
DIANE G. RADCLIFF
ATIORNEV.AT.!.AW
Jua TRINnl.t ROAII
CAMr 111\.1,. PA nOli
In paragraph 7 of the Defendant's first Preliminary
Objection, the Defendant has demurred to the Plaintiff's
Complaint on the basis of excessive restraint ,of trade. In
her brief the Defendant has argued that the agreement is an
unconscionable restraint of trade because it would preclude
the Defendant from working as even a mere nail technician when
she was employed by the Plaintiff as a manicurist. A
reasonable interpretation of and the inferences from the use
of these terms indicate that these two positions, nail
technician and manicurist, are basically interchangeable. To
argue to the court that they are somehow different is
incredulous. Furthermore, since there is doubt as to whether
or not these two positions are similar or dissimilar, this
court cannot say with certainty that the Plaintiff cannot
establish her need for protection. Since all doubts must be
resolved in favor of the Plaintiff, this court is not in a
position to grant the Defendant's demurrer.
Additionally, it cannot be said by reading the Complaint
that on its face it clearly indicates any restraint of trade
exists or that the Defendant is precluded from other unrelated
employment or precluded from this type of employment outside
9
of the twenty-five mile radius, an obviously commutable
distance. Since the Complaint does not show on its face that
the claim is devoid of any merit and it cannot be said with
certainty that recovery cannot be granted, the demurrer is not
to be sustained.
Commonwealth Department of Environment
Resources v. peoos Run Coal Company, 55 Cmwlth. 312, 423 A.2d
765 (1980).
Lastly on this issue the Defendant has argued that since
the agreement does not specifically call for reformation as to
capacity of employment that the Complaint must be dismissed in
its entirety. In this position the Defendant is incorrect.
While it is true that the agreement precludes all employment
in the nail care business and the Plaintiff has sought such
prohibition, that is not to say that the court is not entitled
to reform the contract as to the Defendant's working capacity
in a nail care business to an extent necessary for the
Plaintiff's business interests.
On the contrary the law
clearly provides that the court is empowered to restrict the
effectiveness of restrictive covenants as to capacity
regardless of the terms of any agreement. For example, in Air
Products and Chemicals. Inc. v. Johnson, 442 A.2d 1114 (1982),
the former employer sought an injunction prohibiting his
former employee from working for his competitor because of hiB
knowledge and potential use of the former employer's trade
secrets. The court, while refusing to grant the employer'B
DIANE G. IlADCLlFF
ATTORNEY.AT.LAW 10
SHII TRtNOt.F. ROAn
CA~IP 1111.1.. rA 17011
requested to terminate that new employment, nonetheless
entered an injunction prohibiting the former employee from
doing any work for that new employer which would require him,
consciously or unconsciously, from utilizing those trade
secrets.
It is, therefore, clear that enforcement as to
capacity is not an all or nothing proposition and that the
court is free to reform the capacity portion of the agreement
as the equities of the case may dictate the same as it can
reform or limit it as to geography and duration.
In paragraphs 8 and 9 of Defendant's first Preliminary
Objection, the Defendant has claimed the Complaint should be
dismissed as the Plaintiff has no legitimate business interest
protectable by the court. As held in sidco Paper Companv v.
Aaron, 465 Pa, 586, 351 A.2d 250 (1976), an employer has a
right to protection of customer good will which often is
acquired through the efforts of the business's employees.
That clientele is an asset of the business which is a
protectable property right. To protect that right when an
employee leaves a business, that employee can be prohibited
from diverting those customers. See also John C. Brvant Co.
v. Slina Testina, 369 A.2d 1164 (pa. 1977); Jacobson &
Companv. Inc. V. International Environment Corp., 427 Pa. 439,
235 A.2d 612 (1967). Under the holdings of these cases it is
clear that a business may well have a protectable interest in
its customer relations and in preventing a disturbance of
DIANE G. RADCLIFF
AnORNEY.AT.I.AW
SH8 TRINhl.r. ROAn
CA~lf 1IIL1.. fA 17011
11
those relations. Therefore, whether or not the Plaintiff has
a protectable business interest in her clientele, which as
alleged in the complaint the Defendant is now soliciting, is
a matter to be determined by a trial on the merits and is
properly raised as an affirmative defense and not as a
preliminary objection.
In the law governing enforceability of restrictive
covenants' associated with employment contracts it is clear
that those covenants are prima facia enforceable as long as
they are supported by consideration (the taking of or change
in employment) and are reasonably limited as to time and
geographic area (subject to the ability of the court to limit
capacity, time and geography) and are necessary so as to
protect the interest of the employment. Piercino Paooda. Inc.
v. Hoffner, 465 Pa, 500, 351 A.2d 207 (1976). In essence, all
of the various sub-parts of the Defendant's first preliminary
Objection raise matters dealing with the merits of the case
and should properly be dealt with as an affirmative defense
and not as a preliminary objection. To be legally sufficient
the Plaintiff need only allege the taking of employment, the
entry into a contract with Q restrictive covenant concurrently
with that employment, the termination of employment and the
violation of the restrictive covenant. All other issues such
as have been raised by the Defendant go not to whether or not
the Plaintiff has stated a good cause of action, but rather to
DIANE G. RADCLIFF
ATIORNtY.AT-LAW
SHI TRINnU. ROAU
C.UII' 1111.1.. I'A 171)11
12
whether the court should enforce this agreement or to what
extent enforcement should be ordered on the based on the
circumstances as may be developed at the trial of this case.
As such the Defendant's first Preliminary Objection is
premature and impermissible.
The Plaintiff submits,
therefore, that this demurrer should be dismissed.
(B) A DEMURRER MAY NOT BE USED TO CONTEST
JURISDICTION OF THE EQUITY SIDE OF THE COURT.
In the Defendant's second Preliminary Objection the
Defendant claims that since the Plaintiff's claim is based on
a contract, the Plaintiff has an adequate remedy at law
thereby precluding an action in equity.
unfounded.
This claim is
In the first place a demurrer may not be utilized to
challenge the jurisdiction of the equity side of the court.
March v. Banus, 8 Chest. Co. L.R. 235 (1958). Since a claim
that the Plaintiff has an adequate remedy at law is a contest
as to equity's jurisdiction it is impermissible under Rule
1028 and must be stricken.
Furthermore, the fact that a cause of action is based on
a contract does not preclude equitable enforcement. On the
contrary in cases involving restrictive covenants in
employment agreements injunctive relief is permissible to
prevent unbridled competition since the measure of damages in
DIANE C. RADCLIFF
ATIORNEY.AT.LAW
SU8 TRINIlI.r. ROAII
CAMP 1111.1., PA 11011
13
such cases is often incapable of determination. Furthermore,
the cases of this nature also permit employers to obtain not
only injunctive relief but also damages as well. Jacobson &
Comoanv. Inc. v. International Environmental Coro., 427 Pa.
439, 235 A.2d 612 (1967); Fidelitv Fund v. Disanto, 500 A.2d
431 (Pa.Super 1985). Therefore, since tho law is clear that
equity does have jurisdiction to both enforce agreements and
award damages, the Defendant's second preliminary Objection
must be denied.
(C) A DEMURRER OR A MOTION FOR A MORE SPECIFIC
PLEADING CANNOT BE USED TO CONTEST OR SEEK
ELABORATION ON MATTERS OVER WHICH THE
DEFENDANT HAS AS MUCH KNOWLEDGE AS THE
PLAINTIFF.
In the Defendant's third Preliminary Objection the
Defendant has claimed that the Complaint is insufficient
because the Plaintiff has failed to allege the number and
identity of the Plaintiff's customers solicited by the
Defendant or when and how that solicitation occurred.
A preliminary objection to a complaint will be denied
where the complaint provides the Defendant with enough facts
to frame a proper answer and prepare a defense. Commonwealth
ex reI Milk Marketinq Board v. Sunnvbrook Dairies. Inc., 29
Cmwlth. ct. 210, 370 A.2d 765 (1977).
Moreover, such an
objection should be denied where the objecting party may be
presumed to have as much knowledge of the information sought
DIANE G. RADCLIFF
ATTORNEy..\T.LAW
SUI TRINm.E ROAn
CA~IP 1111.1., rA 17011
14
as does the pleader.
Porta v. American Bank and Trust
Company, 48 D & C 2d 523 (1970); Bio Bovs Auto Parts Co v. Bon
Ton Store, 15 D & C 551 (1958); International Union U.B..
F.e.. S.D. & D.W. v. Watkins, 417 Pa, 120, 207 A.2d 776
(1965) .
Thus, since in this case the Defendant would have as much
if not more knowledge of the customers solicited by the
Defendant, the Defendant cannot be heard to object as to any
lack of specificity on this matter in the Complaint. The
Defendant's third Preliminary Objection should, therefore, be
denied.
(D) A PRELIMINARY OBJECTION CANNOT BE USED TO
CONTEST THE PLAINTIFF'S RIGHT TO LIQUIDATED
DAMAGES.
In the Defendant's fourth Preliminary Objection the
Defendant has sought to strike the Plaintiff's claim for
liquidated damages asserting this claim is a penalty and is
unconscionable. This claim is, therefore, in the form of a
motion to strike instead of a demurrer since it seeks to
DIANE G. RADCLIFf
ATTORNEY.AT.LAW
SHI TRINUI.f. ROAn
C"~II' 1111.1.. rA 17011
strike only part of a pleading rather than testing the legal
sufficiency of a pleading as a whole.
A motion to strike is generally applicable to errors as
to form and the failure to follow procedural rules such as the
failure to endorse a pleading properly, the failure to state
facts succinctly or the failure to timely file a pleading.
15
Such a motion may not be utilized to attack the propriety of
the request for relief or the measure of damages. Sidelina
Hill Christian Cemeterv Assoc. v. McFarland, 9 Adams L.J. 186
(1968); Porter v. Drexel Motors. Inc., 55 Del. Co. Rep. 191
(l9 67). Nor may it be used to attack the relief sought by the
plaintiff on the basis that it is improper. Societv Hill
Towers Tenants Assoc. v. Societv Hill Development. Inc., 75 D
& C 2s 101 (1976). [See also the following cases pertaining
to the impermissibility of utilizing a demurrer to contest
the theory or measure of damages: Klemow v. Time. Inc. 466
Pa, 189, 352 A.2d 12 (1976) cert. den. 429 U.S. 828, 50 L.
Ed. 2d. 91, 97 S. ct. 86; Hudock V. Doneaal Mutual Insurance
Co., 438 Pa. 272, 264 A.2d 668 (1970).
An objection to the theory or measure of damages cannot
be raised by way of preliminary objections. Rather such an
issue must be raised as an affirmative defense in the
responsive pleading, and therefore determined in later
proceedings in the case Societv Hill Towers Tenants Assoc. V.
Societv Hill Development. Inc., Supra.
Thus since the
Defendant's fourth Preliminary Objection contests the right to
damages it is an impermissible objection under Rule 1028 and
must be denied. (See also the argument in Section B as to the
right to damages.)
DIANE G. RADCLIff
ATTORNEY.AT.LAW
JHI TRINnu: ROAn
CAMP 11I1.1" PA nOli
16
(E) A PRELIMINARY OBJECTION MAY NOT BE UTILIZED TO
CONTEST THE RIGHT TO ATTORNEY'S FEES.
The Defendant's fifth preliminary Objection seeks to
strike from the Plaintiff's request for relief the Plaintiff's
claim for attorney fees.
This objection is seeking the
contest the Plaintiff's theory or measure of damages. As in
the preceding section, the arguments for which are
incorporated by reference, this is an impermissible
preliminary objection and must be denied.
IV. CONCLUSION.
Since the Defendant's five Preliminary Objections all
lack merit and raise matters outside of the scope of Rule
1028, those objections must be denied by this court.
DIANE G. RADCLIFF
ATTORNEY.AT.LAW
SHIITRINm.f. ROAIJ
CAMP IIIt.1.. PA 17011
17
CERTIFICATE OF SERVICE
I hereby certify that I am this day serving a copy
of the foregoing document upon the persons and in the manner
indicated below, which service satisfies the requirements
of the Pennsylvania Rules of civil Procedure, by depositing
a copy of the same in the United States Mail, Shiremanstown,
Pennsylvania, with first-class postage, prepaid, as follows:
ANDREW K. STUTZMAN, ESQUIRE
HEPFORD, SWARTZ & MORGAN
P.O. BOX 889
HARRISBURG, PA 17108-0889
"';
Dated: '
rLC' J G \
DCLIFF, ESQUIRE
TrJ.n "e Road
Hill, PA l7011
-0100
32112
DIANE C. RADCLIFF
ATIORNEY.AT.LAW
SUI TRIND1.E ROAU
CAMP 1111.1.. PA 11011
SHELBY C. DUNMIRE
t/d/b/a BLOOMINGNAILS,
PLAINTIFF
V.
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION-LAW
NICOLE S. PROBST,
DEFENDANT
95-0437 EQUITY TERM
BEFORE HOFFER. J. AND BAYLEY. J.
ORDER OF COURT
AND NOW, this ~'- day of June, 1995, the preliminary objections of
defendant to plaintiffs complaint, ARE DISMISSED.
t\fu:lI~
Edgar B. Bayley, J. I
Diane G. Radcliff, Esquire
For Plaintiff
C....t:W ""' ()W'~<_.Q, ,l ~ 19 (ti s-.
II ..! f .
Andrew K. Stutzman, Esquire
For Defendant
:saa
JUN 9 II 37 AH 195
tiLeD OffiCE
Of THI :"', rHOllrTl.f."
CUf.\~["L~~ll C01hTY
I'UIIi;'H'.,\'iI!.
AUG 10 19nt:;
-bY'
SHELBY C. DUNMIRE
t/d/b/a BLOOMINGNAILS,
PLAINTIFF
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNlY, PENNSYLVANIA
v.
NO. 95-437 EQUllY TERM
CIVIL ACTION
EQUllY
NICOLE S. PROBST,
DEFENDANT
ORDER OF COURT
AND NOW, !hI. --/.l'.. d., of ~5' In 'o",'d.ration of tho
attached Settlement Stipulation of the parties, IT IS HEREBY ORDERED AND
DECREED as follows:
1. For a period of one year following two weeks from the date of the
attached Settlement Stipulation dated July 21, 1995, the Defendant, Nicole S.
Probst, shall be enjoined and prohibited from being employed as a nail technician,
manicurist, or other similar type capacity providing nail services or retail sales of
nail care products within a radius of ten miles of the Plaintiff's place of business
located at 4401 Carlisle Pike, Mechanlcsburg, Pennsylvania.
2. For a period of one year following two weeks from the date of the
attached Settlement Stipulation dated July 21, 1995, the Defendant, Nicole S.
Probst, shall not knowingly cail or solicit, directly or Indirectly, any business
customers of the Plaintiff nor participate or assist In the diversion of said
customers away from the Plaintiff to any other person or business.
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3. There shall be no damages, liquidated or otherwise, or other relief
awarded or granted to the Plaintiff as the result of the Defendant's prior alleged
violations of the parties' Employment Agreement. Each party shall bear their
respective attorney fees and costs Incurred as the result of this litigation. The
foregoing notwithstanding, the Defendant, Nicole S. Probst, may be held liable for
damages Incurred by Plaintiff resulting from Defendant's failure hereafter to
comply with the terms of the attached Settlement Stipulation, and such other relief
as may be equitable under the circumstances. / /
BY THE COURT! .' /
/ ,
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Distributed to:
Diane G. Radcliff, Esquire
for Plaintiff
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Andrew K. Stutzman, Esquire
for Defendant
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, IN 'l'HE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
SHELBY C. DUNMIRE tIbIa
B~OOMINGNAIL'S
No. 95-437 EQUITY TERM
Plaintif f
Defendant
:
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CIVIL ACTION - EQUITY
v.
NICOLE PROBST
SETTLEMENT STIPULATION
AND NOW, this gt:! day of July, 1995, come the parties,
together with their respective legal counsel, and stipulate and
agree as follows:
1. For a period of one year following two weeks from the date
of this Stipulation, the Defendant, Nicole S. Probst, shall be
enjoined and prohibited from being employed as a nail technician,
manicurist, or other similar type capacity providing nail services
or retail sales of nail care products within a radius of ten miles
of the Plaintiff's place of business located at 4401 Carlisle Pike,
Mechanicsburg, Pennsylvania.
2. For a period of one year following two weeks from the date
of this Stipulatio~ the Defendant, Nicole S. Probst, shall not
knowingly call or solicit, directly or indirectly, any business
customers of the Plaintiff nor participate or assist in the
diversion of said customers away from the Plaintiff to any other
person or business.
3. There shall be no damages, liquidated or otherwise, or
other relief awarded or granted to the Plaintiff, as the result of
.
I
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the Defendant's prior alleged violations of the parties' Employment
Agreement. Each party shall bear their respective attorney fees
and costs incurred as the result of this litigation. 'l'he foregoing
notwithstanding, the Defendant, Nicole S. Probst, may be held
liable for damages incurred by Plaintiff resulting from Defendant's
failure hereafter to comply with the terms of this Stipulated
Agreement, and such other relief as may be equitable under the
circumstances.
4. The parties acknowledge and agree that this Stipulated
Agreement is intended to fully and completely settle the issues and
claims arising in the within action.
The parties, therefore,
authorize the Court to enter an order incorporating the terms of
this stipulation as a final Order of Court.
, IN WITNESS WHEREOF, and intending to be legally bound hereby,
the parties her.~to have executed this Stipulated Agreement the day
and year first 3bove written.
WITNESS:
~
e1.y
t/d/b/a B
i Ift,"- -1 tit/if
Nicole S. Pro st
Andrew K. Stutzma
for Defendant
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