County of Beaver ex rel. Beaver County Board of Commissioners v. Sainovich

96 A.3d 421, 2014 WL 3437412, 2014 Pa. Commw. LEXIS 361
CourtCommonwealth Court of Pennsylvania
DecidedJuly 16, 2014
StatusPublished
Cited by3 cases

This text of 96 A.3d 421 (County of Beaver ex rel. Beaver County Board of Commissioners v. Sainovich) 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
County of Beaver ex rel. Beaver County Board of Commissioners v. Sainovich, 96 A.3d 421, 2014 WL 3437412, 2014 Pa. Commw. LEXIS 361 (Pa. Ct. App. 2014).

Opinions

[423]*423OPINION BY

Judge COHN JUBELIRER.

The events leading to this monetary dispute between the County of Beaver (County) and Myron R. Sainovich began in 2006 when the Beaver County Board of Commissioners (County Commissioners) appointed Sainovich, pursuant to Section 901 of The County Code,1 as its solicitor for a term beginning January 1, 2006, for which he was paid a fixed annual salary. The County Commissioners also appointed Sai-novich to serve as an interest arbitrator on its behalf commencing January 1, 2006 for additional compensation. When Saino-vieh’s duties as interest arbitrator ended on July 19, 2006, he and his law firm, Sainovich, Santicola & Steele, a Professional Corporation (formerly known as Sai-novich & Santicola, P.C.), billed the County for his services as interest arbitrator at an hourly rate and the County paid him $44,050.00. In 2011, the County determined that the $44,050.00 payment to Sai-novich violated The County Code; the County, by and through the County Commissioners and The Beaver County Controllers Office (County Controller), therefore, filed a civil action against Sainovich seeking to recover the $44,050.00 payment. Once the pleadings closed, Sainovich and the County filed cross-motions for summary judgment.2 By Order entered August 27, 2018, the Court of Common Pleas of Beaver County (trial court) granted the County’s motion for summary judgment and denied Sainovich’s motion. The crux of the issue on appeal here is whether the work Sainovich performed as the interest arbitrator constituted work as “County Solicitor” such that he could not be eompen-sated for that work over and above the fixed annual salary he received as the County’s solicitor.

I. THE COUNTY CODE

Section 901 of The County Code, 16 P.S. § 901, authorizes a county’s commissioners to “appoint a county solicitor, who shall be an attorney-at-law admitted to practice in the courts of this Commonwealth.” Id. Section 1605 of The County Code, 16 P.S. § 1605, mandates that an appointed county officer, which includes a county solicitor, be paid a fixed and specific salary for his or her services. Id.; Snyder v. Naef 36 Pa.Cmwlth. 39, 389 A.2d 212, 214 (1978). The salary is fixed by a salary board, which consists of the county commissioners and the county controller. Sections 1620 and 1622 of The County Code, 16 P.S. §§ 1620, 1622; Snyder, 389 A.2d at 214. The county solicitor is required, “before entering upon the duties of his office, [to] file with the county commissioners an agreement to pay all fees, attorney’s fees, and commissions received from every source as county solicitor into the county treasury.” 16 P.S. § 901. The duties of a county solicitor are set forth in Section 902 of The County Code which provides:

He shall commence and prosecute all suits brought, or to be brought, by the county, wherein or whereby any rights, privileges, properties, claims or demands of the county are involved, as well as defend all actions or suits brought against the county, and shall perform all duties now enjoined by law upon county solicitors, and shall do all and every professional act and render [424]*424legal advice incident to the office which may be required of him by the commissioners.

16 P.S. § 902.

II. FACTS

Sainovich served as the County’s solicitor from January 1, 2006 until June 28, 2011. (Trial Ct. Op. at 8.) During Saino-vich’s tenure as the County’s solicitor, the County also retained outside counsel.3 In 2003, the County had retained the law firm of Thorp, Reed & Armstrong (Thorp Reed) to act as the County’s legal counsel in various legal matters. (Trial Ct. Op. at 2.) In 2005, in an attempt to save money, the County Commissioners began discussing the possibility of outsourcing some of the operations at the County’s jail. (Trial Ct. Op. at 2-3.) The County engaged Thorp Reed to provide legal advice with respect to the possibility of outsourcing this work. During this time, the collective bargaining agreement between the County and the Union representing the corrections officers employed at the County’s jail was about to expire. (Deposition of Joseph Friedman, Esquire at 16, R. Item 40.) Consequently, the County and the Union entered into negotiations; however, the parties could not agree on the terms of a new agreement. (Friedman’s Dep. at 16.) Therefore, the dispute regarding the terms of the new agreement proceeded to interest arbitration. (Friedman’s Dep. at 16.) During the interest arbitration, the County was represented by Attorney Joseph Friedman of Thorp Reed. (Trial Ct. Op. at 3.) The interest arbitration was heard by a panel of three arbitrators. (Friedman’s Dep. at 21-22.) Thus, the County was required to name one person to represent the County’s interests during the arbitration proceedings. (Friedman’s Dep. at 21-22.) Attorney Friedman recommended that the County appoint Sainovich as its interest arbitrator. (Friedman’s Dep. at 22.).

On July 13, 2006, the County Commissioners adopted a resolution appointing Sainovich as the County’s “ ‘professional legal counsel for the position of Arbitrator for Beaver County’ ” commencing January 1, 2006. (Trial Ct. Op. at 3 (quoting Complaint ¶¶ 9-10, Exs. 5 and 6).) Sainovich’s duties in this capacity included serving as the arbitrator representing the County’s interests on the panel of three arbitrators hearing the interest arbitration between the County and the Union representing the corrections officers. (Complaint ¶¶ 11, 13.) With respect to Sainovich’s compensation for this position, the resolution referenced a fee agreement, a copy of which was to be attached to the resolution.4 (Trial Ct. Op. at 3.).

While he was serving as the County’s interest arbitrator, Sainovich worked with Attorney Friedman. (Trial Ct. Op. at 3.) It was difficult for Attorney Friedman to discern over the course of his working relationship with Sainovich when Sainovich was acting as the County’s solicitor and when he was acting as the County’s interest arbitrator; however, it was apparent to Attorney Friedman that Sainovich participated in planning legal strategy and otherwise representing the County’s interests. (Trial Ct. Op. at 3-4.) Sainovich consulted with Attorney Friedman as to how much Sainovich should bill the County for his [425]*425services as the interest arbitrator. (Trial Ct. Op. at 4.) Sainovieh and Attorney Friedman agreed that Sainovieh should charge the same hourly rate that Attorney Friedman was charging, which was $250.00 per hour. (Trial Ct. Op. at 4.)

Sainovich’s services as interest arbitrator ended on July 19, 2006. (Trial Ct. Op. at 3.) Thereafter, on July 25, 2006, Saino-vieh submitted a bill in the amount of $44,050.00 to the County solicitor’s office for his services related to the “Beaver County Jail Arbitration.” (Trial Ct. Op. at 3; Complaint ¶ 12, Ex. 7.) The County Controller issued a check payable to Saino-vich’s law firm on August 2, 2006 with the notation that the check was for “Legal Fees/Jail.” (Trial Ct. Op. at 3; Complaint, Ex. 8.)

Almost five years later, in March 2011, after conducting an investigation regarding the propriety of additional work proposed for Sainovieh, the County Controller questioned the $44,050.00 payment made to Sainovieh in 2006 for the work he performed as the interest arbitrator. (Trial Ct. Op.

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Bluebook (online)
96 A.3d 421, 2014 WL 3437412, 2014 Pa. Commw. LEXIS 361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/county-of-beaver-ex-rel-beaver-county-board-of-commissioners-v-sainovich-pacommwct-2014.