Bensalem Twp. v. S. Karley

CourtCommonwealth Court of Pennsylvania
DecidedJanuary 3, 2023
Docket1053 C.D. 2021
StatusUnpublished

This text of Bensalem Twp. v. S. Karley (Bensalem Twp. v. S. Karley) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bensalem Twp. v. S. Karley, (Pa. Ct. App. 2023).

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

Bensalem Township, John M. : Chaykowski, Administrator William : Cmorey, Trustee : : v. : No. 1053 C.D. 2021 : Argued: November 15, 2022 Samuel Karley, : Appellant :

BEFORE: HONORABLE PATRICIA A. McCULLOUGH, Judge HONORABLE LORI A. DUMAS, Judge HONORABLE MARY HANNAH LEAVITT, Senior Judge

OPINION NOT REPORTED

MEMORANDUM OPINION BY SENIOR JUDGE LEAVITT FILED: January 3, 2023 Samuel Karley (Karley) has appealed the May 27, 2021, order of the Court of Common Pleas of Bucks County (trial court) that denied his post-trial motion for judgment notwithstanding the verdict (judgment NOV) or for a new trial.1 The underlying matter was a breach of contract action brought by Bensalem Township, John M. Chaykowski, and Administrator William Cmorey, Trustee (collectively, Township), against Karley. The trial court held that Karley breached his contractual obligation to remit his workers’ compensation payments to the Township’s pension plan, as required in Karley’s severance agreement with the Township. Karley asserts that the trial court erred, inter alia, because the severance

1 Because our analysis of the underlying issues leads to the same ultimate conclusion, we address Karley’s post-trial motion, herein, simply as a “post-trial motion” or a “motion for judgment NOV,” rather than as a “motion for judgment NOV or for a new trial.” In this regard, “when analyzing a decision by a trial court to grant or deny a new trial, the proper standard of review, ultimately, is whether the trial court abused its discretion.” Harman ex rel. Harman v. Borah, 756 A.2d 1116, 1122 (Pa. 2000). agreement violated the statute governing municipal pensions. For the reasons that follow, we affirm the trial court’s order. On January 3, 2006, Karley began full-time employment as a Township police officer. The terms of his employment were governed by the collective bargaining agreement (CBA) between the Township and the Police Benevolent Association (Union). The CBA provided, inter alia, for a disability pension. On September 17, 2010, while on duty, Karley sustained a back and neck injury, resulting in cervical radiculopathy. Despite his injury, he was able to return to work. However, approximately four years later, in November 2014, Karley exacerbated his 2010 injury while trying to restrain a suspect. As a result, he became permanently unable to perform his duties. On August 13, 2015, Karley entered into a severance and general release agreement (severance agreement) with the Township. The severance agreement provided that Karley would receive a disability pension at the rate of 50% of his final average compensation, or $4,897.15 per month, effective October 16, 2015. The severance agreement also provided as follows: The amount of Karley’s monthly disability pension may be reduced by any amount of workers’ compensation benefit received by Karley or which may in the future be received by him. Karley has an affirmative duty to continue his workers’ compensation claim, cooperate in the requirements of that claim, and inform the Township of the status of the claim and any changes. If workers’ compensation benefits end or are changed in amount or otherwise, and Karley has complied in good faith with his obligations, the offset to Karley’s disability pension will be eliminated or adjusted accordingly.

Reproduced Record at 251a (R.R. __) (emphasis added). Thereafter, on November 1, 2017, the workers’ compensation judge (WCJ) issued a decision, based on the stipulation of the parties, that Karley was 2 entitled to total disability compensation in the amount of $845 per week based on his average weekly wage of $2,318.39, as of the date of his injury. The disability compensation was awarded as of July 18, 2015. However, the weekly disability compensation amount of $845 was adjusted to account for Karley’s disability pension. As explained by the Township’s solicitor: The Plan Actuary has calculated that 37.1% of [Karley’s] monthly pension represents employer contribution to the plan. Under the [Workers’ Compensation] Act,[2] employer/insurer gets an offset in an amount equal to 37.1% of the pension. In this case, that comes out to $419.27/wk, reducing Karley’s weekly WC payment to [$]425.73 (his TTD rate is $845/wk). WC is paying Karley $425.73 per week.

R.R. 322a (emphasis in original). Under the severance agreement, Karley was required to remit the $425.73 weekly compensation benefit to the Plan. By letter of September 23, 2016, the Township’s pension administrator advised Karley that he had improperly retained these workers’ compensation payments instead of remitting them to the Township, as required by the severance agreement. The pension administrator instructed Karley that he “must immediately deliver [] a certified bank check, payable to the ‘Bensalem Township Police Pension Fund,’ in the amount of $26,292.59, by no later than Friday, September 30, 2016” and that if he did not, the Township would start “reducing [his] monthly pension benefit” to account for the workers’ compensation payments owed to the Township. R.R. 256a. On October 19, 2016, the Township initiated a civil action against Karley asserting claims of conversion, breach of contract, promissory estoppel, and unjust enrichment arising from his refusal to remit his workers’ compensation

2 Act of June 2, 1915, P.L. 736, as amended, 77 P.S. §§1-1041.4, 2501-2510. 3 payments to the Township. In response, Karley asserted counterclaims of conversion, unjust enrichment, mandamus, declaratory judgment, and a violation of the Pennsylvania Wage Payment and Collection Law,3 as a result of the Township’s demand for his workers’ compensation payments. See Trial Court Opinion, 5/27/2021, at 2. The matter proceeded to trial on August 10 and August 11, 2020, and at its conclusion, the parties requested a declaratory judgment on the legality of the Plan’s offset for workers’ compensation. On December 23, 2020, the trial court entered a judgment in favor of the Township on breach of contract and conversion. However, because the Township had already recovered what was owed under the severance agreement by adjusting Karley’s disability pension payments, the trial court did not order an award of damages. Karley filed a motion for judgment NOV, which the trial court denied. The trial court observed that Karley’s post-trial motion was untimely filed because it was not transmitted to the prothonotary within 10 days of the decision as required by the Pennsylvania Rules of Civil Procedure.4 Nevertheless, the trial court addressed the merits of Karley’s motion for judgment NOV as follows:

3 Act of July 14, 1961, P.L. 637, as amended, 43 P.S. §§260.1-260.45. 4 The rules provide, in pertinent part: (c) Post-trial motions shall be filed within ten days after (1) verdict, discharge of the jury because of inability to agree, or nonsuit in the case of a jury trial; or (2) notice of nonsuit or the filing of the decision in the case of a trial without jury. PA.R.CIV.P. 227.1(c). The trial court stated “the [m]otion was never filed with the [trial c]ourt. Rather, [Karley] emailed, and sent by mail, the [m]otion on January 4, 2021. On January 5, 2021, [Karley] filed the [c]ertificate of [s]ervice to which the [m]otion was attached, but the actual [m]otion itself was never filed as a separate entry on the [d]ocket.” Trial Court Opinion, 5/27/2021, at 2-3. 4 [Karley] has set forth thirty-one separate alleged errors, which individually nit-pick the [d]ecision, but which ignore overriding legal principles which control this fact situation and this dispute. [Karley] was a police officer, who received the benefits of a contract negotiated by the [Union] in accordance with the specific law which controls collective bargaining agreements.

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Bluebook (online)
Bensalem Twp. v. S. Karley, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bensalem-twp-v-s-karley-pacommwct-2023.