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Home My WebLink About96-6078 EquityGIANT FOOD STORES, INC., Plaintiff DAVID MICHAEL LEONHARD, Administrator of the Estate of BARRY L. LEONARD, Defendant · IN THE COURT OF COMMON PLEAS OF · CUMBERLAND COUNTY, PENNSYLVANIA · CIVIL ACTION--EQUITY · No. 96-6078 EQUITY TERM IN RE: ADJUDICATION BEFORE OLER, J. DECREE NISI AND NOW, this 23rd day of December, 1998, upon consideration of Plaintiff's amended complaint in the above-captioned matter, following an equity trial held on December 16, 1998, and for the reasons stated in the accompanying opinion, the court finds in favor of Plaintiff and against Defendant in the amount of $279,717.40, with interest sec. leg. from July 28, 1995, and it is further ordered, adjudged and decreed as follows: 1. A constructive trust in favor of Plaintiff is imposed upon the following property formerly possessed by Defendant's decedent and presently in the possession of the Cumberland County Clerk of Courts, the Cumberland County District Attorney, and/or the Pennsylvania State Police: $112,514.17, and the proceeds of the sale of a certain ring, in cash or on deposit, plus any interest accrued and less any poundage charged by the Clerk of Courts as of the time of release of the funds to Plaintiff; a 1995 Chevrolet Blazer truck (VIN 2GCEK 19H5 S 1198466); a 1993 Harley-Davidson motorcycle (VIN 1HD1BKL10PY035095); and a computer. This property shall be distributed to Plaintiff. 2. Plaintiff is authorized to execute the certificate of title to the aforesaid Chevrolet Blazer as seller, subject to any liens of record. 3. Plaintiff is authorized to secure issuance from the Pennsylvania Department of Transportation of a certificate of title to the aforesaid Harley-Davidson motorcycle in its name, subject to any liens of record, and to execute the certificate of title thereafter as seller. 4. Plaintiff is authorized to execute a bill of sale for the aforesaid computer, subject to any liens of record. This decree nisi shall automatically become a final decree in the event that no motion for post-trial relief is filed pursuant to Pennsylvania Rule of Civil Procedure 227.1 within the 10-day time period provided for therein. BY THE COURT, Wayne F. Shade, Esq. 53 West Pomfret Street Carlisle, PA 17013 David Michael Leonhard Administrator of the Estate of Barry L. Leonhard Apartment 1 542 Spruce Street Lebanon, PA 17046 John G. DiLeonardo, Esq. 4650 Fritchey Street Harrisburg, PA 17109 27 South Arlene Street Harrisburg, PA 17112 GIANT FOOD STORES, INC., Plaintiff Vo DAVID MICHAEL LEONHARD, Administrator of the Estate of BARRY L. LEONHARD, Defendant · IN THE COURT OF COMMON PLEAS OF · CUMBERLAND COUNTY, PENNSYLVANIA · CIVIL ACTION--EQUITY . · No. 96-6078 EQUITY TERM IN RE: ADJUDICATION BEFORE OLER, J. OPINION and DECREE NISI Oler, J., December 23, 1998. In this equity case, Plaintiff Giant Food Stores, Inc., has brought suit against the personal representative of a former employee as the result of an alleged fraudulent scheme perpetrated by the employee. Relief requested includes a constructive trust upon proceeds of the scheme and an award of other assets in the estate to the extent of the fraud. Trial in the matter was held on Wednesday, December 16, 1998. For the reasons stated in this opinion, the court will find in favor of Plaintiff in the amount of $279,727.40, plus interest sec leg., and will impose a constructive trust upon those funds and items shown to have been proceeds of the tort. FINDINGS OF FACTS 1. Plaintiff is Giant Food Stores, Inc., a corporation operating a number of stores throughout the country. 2. At all times pertinent to this case, Defendant's decedent was an employee of Plaintiff, with responsibilities in the area of certain computer operations. 3. Defendant's decedent defrauded Plaintiff of $279,717.40 by means of a scheme whereby Plaintiff was billed by a nonexistent company for computer work not performed by that company; the scheme ended on or about July 28, 1995. 4. Defendant's decedent was arrested and charged with theft as a result of the scheme, but died on March 23, 1996, before the case came to trial. 5. Proceeds directly traceable to the theft were placed in the possession of the Cumberland County Clerk of Courts, the Cumberland County District Attorney's Office and/or the Pennsylvania State Police in the form of cash in the amount of $112,514.17 and proceeds of the sale of a certain ring, a 1995 Chevrolet Blazer track (VIN 2GCEK19H5 S 1198466), a 1993 Harley-Davidson Motorcycle (VIN 1HD 1BKL 10PY035095), and a computer. DISCUSSION Fraud must be proven by clear and convincing evidence. Sewak v. Lockhart, 699 A.2d 755 (Pa. Super. Ct. 1997). A constructive trust is an appropriate remedy where traceable unjust enrichment has resulted fi.om the perpetration ora fraud. Robbins v. Kristofic, 434 Pa. Super. 392, 643 A.2d 1079 (1994). Preverdict interest in a fraud case involving unjust enrichment may be awarded. Sackv. Fein, 489 Pa. 152, 413 A.2d 1059 (1980). In the present case, Plaintiff has proven by clear and convincing evidence that Defendant's decedent defrauded Plaintiffof$279,717.40 in a scheme which ended about July 28, 1995. Plaintiff has also shown that the items of personalty enumerated in the Findings of Fact above were direct proceeds of the fraudulent conduct. CONCLUSIONS OF LAW 1. The court has jurisdiction over the parties and subject matter of this litigation. 2. Plaintiff is entitled to relief in the form of an award of damages and the imposition of a constructive trust on proceeds of the fraudulent conduct of Defendant's decedent. ORDER OF COURT AND NOW, this 23rd day of December, 1998, upon consideration of Plaintiff's amended complaint in the above-captioned matter, following an equity trial held on December 16, 1998, and for the reasons stated in the accompanying opinion, the court finds in favor of Plaintiff and against Defendant in the amount of $279,717.40, with interest sec. 2 leg. from July 28, 1995, and it is further ordered, adjudged and decreed as follows: 1. A constructive trust in favor of Plaintiff is imposed upon the following property formerly possessed by Defendant's decedent and presently in the possession of the Cumberland County Clerk of Courts, the Cumberland County District Attorney, and/or the Pennsylvania State Police: $112,514.17, and the proceeds of the sale of a certain ring, in cash or on deposit, plus any interest accrued and less any poundage charged by the Clerk of Courts as of the time of release of the funds to Plaintiff; a 1995 Chevrolet Blazer truck (VIN 2GCEK19H5S 1198466); a 1993 Harley-Davidson motorcycle (VIN 1HD1BKL10PY035095); and a computer. 2. Plaintiff is authorized to execute the certificate of title to the aforesaid Chevrolet Blazer as seller, subject to any liens of record. 3. Plaintiff is authorized to secure issuance from the Pennsylvania Department of Transportation of a certificate of title to the aforesaid Harley-Davids°n motorcycle in its name, sucject to any liens of record, and to execute the certificate of title thereafter as seller. Plaintiff is authorized to execute a bill of sale for the aforesaid computer, subject to any liens of record. This decree nisi shall automatically become a final decree in the event that no motion for post-trial relief is filed pursuant to Pennsylvania Rule of Civil Procedure 227.1 within the 1 O-day time period provided for therein. BY THE COURT, Wayne F. Shade, Esq. 53 West Pomfret Street Carlisle, PA 17013 /s/J. Wesley Oler, Jr. J David Michael Leonhard Administrator of the Estsate of Barry L. Leonhard Apartment 1 542 Spruce Street Lebanon, PA 17046 John G. DiLeonardo, Esq. 4650 Fritchey Street Harrisburg, PA 17109 27 South Arlene Street Harrisburg, PA 17112