HomeMy WebLinkAbout2012-5473
SANDRA L. McCORKEL : IN THE COURT OF COMMON
PLAINTIFF : PLEAS OF CUMBERLAND
: COUNTY, PENNSYLVANIA
V. :
:
PENN PRODUCTS CORPORATION, :
DEFENDANT : 12-5473 CIVIL TERM
IN RE: DEFENDANT’S PRELIMINARY OBJECTIONS TO PLAINTIFF’S
SECOND AMENDED COMPLAINT
BEFORE HESS, P.J., MASLAND, J. AND PLACEY, J.
OPINION AND ORDER OF COURT
Masland, J., April 5, 2013:--
Before the court are the Preliminary Objections filed by Defendant Penn
Products Corporation to the Second Amended Complaint filed by Plaintiff Sandra
L. McCorkel. Following briefing by the parties and argument en banc, we
overrule the objections in all respects.
I. Background
This matter arises from a dispute between the Defendant Corporation and
the Plaintiff, a former officer and director of the corporation. The Plaintiff seeks
the recovery of salary and sales commissions she claims are due and owing from
the Defendant. She also seeks repayment of a loan she made to the Defendant.
Defendant presents the following arguments in support of its objections to
Plaintiff’s Second Amended Complaint:
1. The Court should dismiss Plaintiffs claim for
liquidated damages in Count I because it is not ripe
and is statutorily barred by Defendant’s good faith
defense;
12-5473 CIVIL TERM
2. The Court should dismiss Count III (Quantum
Meruit) because it fails to state a cause of action
under Pennsylvania law; and
3. The Court should dismiss Count I due to Plaintiff’s
failure to exercise a statutory remedy.
II. Discussion
A. Liquidated Damages
Plaintiff is seeking liquidated damages from the Defendant for failure to
pay her wages, pursuant to Pennsylvania’s Wage Payment and Collection Law
(Law), 43 P.S. §260.1 et seq. The Law provides, in relevant part:
Where wages remain unpaid for … sixty days
beyond the filing by the employe of a proper claim …
and no good faith contest or dispute of any wage
claim including the good faith assertion of a right of
set-off or counter-claim exists accounting for such
non-payment, the employe shall be entitled to claim,
in addition, as liquidated damages an amount equal
to twenty-five percent (25%) of the total amount of
wages due, or five hundred dollars ($500), whichever
is greater.
43 P.S. § 260.10 (emphasis added).
1. Proper Claim
Defendant first claims Plaintiff’s demand for liquidated damages is
premature as she did not allow sixty days to pass after filing a statutorily required
“proper claim” for her unpaid wages before seeking special damages. According
to Defendant, the date of Plaintiff’s proper claim is the date she filed the instant
civil Complaint. For her part, Plaintiff contends the date her counsel sent a
demand letter to Defendant demanding the payment of salaries and commissions
allegedly owed constitutes the date of her proper claim.
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First, because the term “claim” is not defined within the Law, the parties
have grappled over the meaning of “filing by the employe of a proper claim.”
Defendant would have us focus on the word “filing” and interpret it to require the
filing of a civil complaint. We decline to do so. Had the General Assembly
intended to require the filing of a proper complaint it would have said so explicitly.
Though we must “listen attentively to what a statute says[;][we] must also
listen attentively to what it does not say.” Kmonk-Sullivan v. State Farm Mut.
Auto. Ins. Co., 788 A.2d 955, 962 (Pa. 2001) (citation omitted). “[I]t is a canon of
statutory construction that a court has no power to insert a word into a statute if
the legislature has failed to supply it.” Vlasic Farms, Inc. v. Pa. Labor Rels. Bd.,
734 A.2d 487, 490 (Pa. Cmwlth. 1999), aff’d, 777 A.2d 80 (Pa. 2001); see also
Girgis v. Bd. of Physical Therapy, 859 A.2d 852 (Pa. Cmwlth. 2004) (we may not
insert a word the legislature failed to supply into a statute). As such, we will not
insert the requirement of filing a civil complaint into the Law where no such
requirement exists. We conclude the demand letter constituted the filing of a
proper claim sufficient to trigger the sixty day waiting period under the Law.
2. Good Faith Dispute
Defendant next disputes Plaintiff’s right to seek special damages on the
basis that there exists a good faith contest or dispute of Plaintiff’s wage claim.
Specifically, Defendant points to the action for injunctive relief it filed against
Plaintiff and other former officers of the corporation that is currently pending
before the Superior Court. In that action, the parties participated in a lengthy and
hotly contested hearing on injunctive relief relating to the control of the Defendant
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1
Corporation. Following the hearing, the undersigned ruled in favor of Corporate
plaintiff and granted injunctive relief. That decision is currently on appeal to our
Superior Court. No doubt, the ultimate resolution of that case will be relevant to
the ultimate determination of good faith in this case, but given the procedural
posture of both matters, we conclude, for the purposes of the instant preliminary
objections, that the injunctive relief case is not relevant to the question of good
faith currently before the court.
In ruling on preliminary objections all well-pleaded facts and all reasonable
inferences that may be drawn from them are accepted as true. Lutz v.
Springettsbury Twp., 667 A.2d 251, 253 (Pa. Cmwlth. 1995). Here, Plaintiff has
pled that her wages were withheld in bad faith. Further, the question of bad faith
is normally a fact question reserved for the jury. Thomas Jefferson University v.
Wapner, 903 A.2d 565, 575 (Pa. Super. 2006). Accordingly, at this early stage
in the litigation, it is premature for the court to determine whether Defendant’s
contest of Plaintiff’s wage claim was in good faith.
B. Quantum Meruit
Defendant next seeks dismissal of Count III of Plaintiff’s Complaint on the
basis that she cannot seek recovery in quantum meruit where she has already
affirmatively pled the existence of a written contract.
We agree that, ultimately, Plaintiff may not recover damages for both
breach of contract and in quantum meruit; however, at this initial stage of
1
See Penn Products Corporation, David J. Horick, Douglas C. Horick, Marilyn Snyder Budzynski,
Executrix-DBN of the Estate of Maybelle Asper, Deceased, Daniel A. Kuhn, Donna Lee Goff,
Lewis G. Kuhn, Carolyn Wagner, Doris I. Ernst, and Jean M. Horick v. Sandra McCorkel, Gregory
R. Swope, Megan Swope, and John Swope, 12-2838 Civil Term, Cumberland County. Hearing
held, May 14, 2012.
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litigation, Plaintiff has the right to plead an equitable remedy in the alternative to
her contract claim. Further, if Plaintiff had failed to plead an alternative count of
unjust enrichment, that remedy would be unavailable to her if she failed to prove
the existence of a contract at trial. Birchwood Lakes Community Ass’n Inc. v.
Comis, 442 A.2d 304, 308 (Pa. Super. 1982). Accordingly, this preliminary
objection is overruled.
C. Failure to Exercise Statutory Remedy
Finally, Defendant argues Plaintiff cannot state a claim under the Law as
she has failed to exercise the statutory remedy available to her. Specifically,
Defendant contends an aggrieved employee seeking to recover special damages
under the Law must first pursue a remedy from the Secretary of Labor and
Industry.
Defendant argues, “Section 260.9a of the [Law], which addresses
remedies and penalties, sets forth a detailed procedure for an aggrieved
employee or former employee to obtain a remedy through the Secretary of Labor
and Industry.” Def. Br. at 9. Defendant is correct, but ignores that seeking a
remedy through the Secretary is clearly an alternative to a private cause of
action. The relevant statute reads:
(b) Actions by an employe, labor organization, or
party to whom any type of wages is payable to
recover unpaid wages and liquidated damages may
be maintained in any court of competent jurisdiction,
by such labor organization, party to whom any type of
wages is payable or any one or more employes for
and in behalf of himself or themselves ….
(c) The employe or group of employes, labor
organization or party to whom any type of wages is
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payable may, in the alternative, inform the secretary
of the wage claim against an employer or former
employer, and the secretary shall, unless the claim
appears to be frivolous, immediately notify the
employer or former employer of such claim by
certified mail.
43 P.S. § 260.9a.
The clear language of the statute does not require Plaintiff to exhaust her
statutory remedy before commencing a civil action in her own right. Accordingly,
this preliminary objection is overruled.
III. Conclusion
For all these reasons, Defendant’s Preliminary Objections are overruled in
all respects. Defendant shall file an Answer within 20 days.
ORDER OF COURT
AND NOW, this day of April, 2013, Defendant’s Preliminary
OVERRULED
Objections are in all respects. Defendant shall file an Answer
within twenty (20) days.
By the Court,
Albert H. Masland, J.
William Andring, Esquire
248 Creek Road
Camp Hill, PA 17011
For Plaintiff
Marvin Beshore, Esquire
130 State Street, P.O. Box 946
Harrisburg, PA 17108-0946
For Defendant
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SANDRA L. McCORKEL : IN THE COURT OF COMMON
PLAINTIFF : PLEAS OF CUMBERLAND
: COUNTY, PENNSYLVANIA
V. :
:
PENN PRODUCTS CORPORATION, :
DEFENDANT : 12-5473 CIVIL TERM
IN RE: DEFENDANT’S PRELIMINARY OBJECTIONS TO PLAINTIFF’S
SECOND AMENDED COMPLAINT
BEFORE HESS, P.J., MASLAND, J. AND PLACEY, J.
ORDER OF COURT
AND NOW, this day of April, 2013, Defendant’s Preliminary
OVERRULED
Objections are in all respects. Defendant shall file an Answer
within twenty (20) days.
By the Court,
Albert H. Masland, J.
William Andring, Esquire
248 Creek Road
Camp Hill, PA 17011
For Plaintiff
Marvin Beshore, Esquire
130 State Street, P.O. Box 946
Harrisburg, PA 17108-0946
For Defendant