Hess v. Pembo

422 So. 2d 503
CourtLouisiana Court of Appeal
DecidedNovember 2, 1982
Docket13244
StatusPublished
Cited by13 cases

This text of 422 So. 2d 503 (Hess v. Pembo) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hess v. Pembo, 422 So. 2d 503 (La. Ct. App. 1982).

Opinion

422 So.2d 503 (1982)

Sharon HESS
v.
Julien PEMBO d.b.a. Pembo and Associates.

No. 13244.

Court of Appeal of Louisiana, Fourth Circuit.

November 2, 1982.
Rehearing Denied December 21, 1982.

*504 Clement F. Perschall, Jr., New Orleans, for plaintiff-appellant.

Michael A. Britt, Leon A. Crist, New Orleans, for defendant-appellee.

Before BARRY, LOBRANO and WILLIAMS, JJ.

BARRY, Judge.

Plaintiff sued her former employer, Pembo and Associates, for unpaid commissions, as well as penalties and attorney's fees, allegedly due under LSA-R.S. 23:632 within three days after she quit work. The trial court awarded plaintiff $1,629.69 in commissions, denied her claim for penalties, and awarded $350.00 attorney's fees. Plaintiff appeals the amount of commissions awarded, the denial of penalties, and the amount of attorney's fees.

I. CALCULATION OF THE AMOUNT DUE PLAINTIFF FOR UNPAID COMMISSIONS

Plaintiff worked as a personnel counselor with defendant's employment agency from 1979 through July 17, 1980. Her job entailed the placement of applicants for which *505 she received commissions in accordance with the agency's procedures, based upon the placed employee's salary and various other factors. At trial, plaintiff introduced evidence regarding commissions for certain placements made during the months preceding her voluntary termination of employment. None of those commissions had been paid at the time of trial, and several (not all) of the claimed amounts were contested by defendant. The discrepancy between plaintiff's and defendant's accountings of the amount due derives from a fact controversy concerning the parties' agreements as to the commissions applicable to certain placements by plaintiff.

Plaintiff and defendant were the only witnesses at trial. Both testified plaintiff did not sign a written employment contract, but that she was furnished a booklet describing the agency's procedures and policies as to the percentages and terms of placement commissions, draws and other consultant benefits. Plaintiff and defendant agreed that the commission scale and other benefits were explained to her in some detail, either by defendant or by the office manager, at the commencement of her employment and on subsequent occasions.

The first disputed commission involves plaintiff's placement of an employee with Latter & Blum, a regular client of defendant's employment agency. The applicant placed by plaintiff replaced another employee who had quit her job shortly after being placed by a different counselor from defendant's agency. Latter & Blum had already been invoiced for and made partial payment of the agency's fee for the former employee, and was given a credit for that amount toward the placement fee of the new employee. Defendant Pembo, owner of the agency, testified plaintiff had specifically agreed to accept a commission for the replacement employee based on only the additional amount billed to that client, which was $504.00. Plaintiff testified that, although she was aware that Latter & Blum had been billed for $504.00 and was to receive a $720.00 credit towards the new employee's fee, she expected her commission to be based on the amount previously billed plus the additional $504.00.

After reviewing the invoices and accounting ledger and observing both witnesses, the Trial Judge said, and we agree, that plaintiff accepted a reduced commission:

... the court believes that plaintiff was aware of a previous credit due on the account and took over the account subject to the credit. The amount actually billed to Latter and Blum was $540.00 [sic], not $1,012.00. The court further believes that had there been any intention on the part of the defendant to pay plaintiff for the full amount of the placement, some notation would have [sic] made on the records, but this was not done. Based on the lack of any written evidence and the testimony of the defendant, this court believes that a commission was to be earned only on the sum of $540.00 [sic].

Plaintiff also questions a deduction of $312.00 which had initially been credited to plaintiff upon her placement of an applicant with Central Savings & Loan, but was deducted from her account when the employee left and the customer was credited for the full fee. Plaintiff testified she was unaware of a "charge-back" policy upon a placed employee's voluntary termination. Defendant stated he recalled discussing the agency's charge-back policy within the first few weeks of plaintiff's employment when he reviewed the employment contract with her. Defendant further testified both his wife and office manager also "most probably" reviewed this procedure with plaintiff. Defendant explained that when a counselor works with an established customer of the agency and a placement terminates, the same counselor would generally procure a replacement employee and would thus not lose the fee. The trial court chose to believe defendant's testimony regarding plaintiff's knowledge of and acquiescence in the charge-back policy, and we find no error in that fact-finding.

Plaintiff also argues that defendant's "charge-back" policy is unenforceable *506 as a matter of law because it is arbitrary, indefinite and ambiguous and plaintiff could not have freely consented as a term of her employment.

According to the testimony of both parties, each agency client had a "guaranty period" of from 30-90 days during which it received an automatic refund or credit if a placed employee left; defendant testified that, when he felt it was necessary to retain a valued client, he authorized such credits (with corresponding commission deductions) several months after the set guaranty period had elapsed. Since we have found plaintiff was aware of this "charge-back" policy, and it appears during her employment plaintiff also had an interest in maintaining good relations with clients, the policy in question is not so arbitrary or ambiguous as to be deemed a legal nullity.

The final disputed item regarding plaintiff's commissions involves a deduction of a 10% "house fee" by defendant in connection with plaintiff's placement of an employee at DePaul Hospital. According to defendant, such "house fees" were part of the agency's established commission structure for placements which resulted from yellow pages advertising by the agency or on which "the job order is an account of the company when it's given to [an employment counselor]." Defendant testified that the various "house" and referral fees were thoroughly explained to plaintiff when she began working for defendant. Although plaintiff testified she was unaware of any commission structure other than the straight sliding scale commission for each quarter, the ledgers and invoices in the record indicate plaintiff was familiar with and participated in split commissions and referral fees on several accounts during her employment. The trial court's finding on this factual dispute is entitled to great weight and will not be disturbed.

The other commission items awarded by the court were not challenged by either party on appeal. In fact, the amount awarded by the trial court was the exact amount defendant conceded at trial he owed plaintiff.

Accordingly, we affirm the lower court's judgment awarding plaintiff $1,629.69 in commissions from defendant.

II. RECOVERY OF PENALTIES UNDER LSA-R.S. 23:632

Plaintiff's second specification of error is that the trial court erred in denying penalties under LSA-R.S. 23:632:

Any employer who fails or refuses to comply with the provisions of R.S.

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422 So. 2d 503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hess-v-pembo-lactapp-1982.