Kotlinski v. Mortgage America, Inc.

40 F. Supp. 2d 298, 4 Wage & Hour Cas.2d (BNA) 1462, 1998 U.S. Dist. LEXIS 15365, 1998 WL 1029222
CourtDistrict Court, W.D. Pennsylvania
DecidedJuly 16, 1998
DocketCIV. A. 97-699
StatusPublished
Cited by2 cases

This text of 40 F. Supp. 2d 298 (Kotlinski v. Mortgage America, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kotlinski v. Mortgage America, Inc., 40 F. Supp. 2d 298, 4 Wage & Hour Cas.2d (BNA) 1462, 1998 U.S. Dist. LEXIS 15365, 1998 WL 1029222 (W.D. Pa. 1998).

Opinion

OPINION and ORDER OF COURT

AMBROSE, District Judge.

In her Complaint against Defendant, Mortgage America, Inc. d/b/a Alternative Lending (“Mortgage America”), Plaintiff, Corinne E. Kotlinski (“Kotlinski”), alleges claims against Mortgage America for violation of the Wage Payment and Collection Laws 43 Pa. Cons.Stat. § 260.1, et seq., an accounting, unjust enrichment and intentional infliction of emotional distress. These claims stem from allegations by Kotlinski that Mortgage America (1) failed to pay commissions due to Kotlinski for mortgage loans that she originated prior to voluntarily terminating her employment with Mortgage America and (2) subjected Kotlinski to mental and physical suffering by engaging in sexually offensive conduct towards her in the Mortgage America office and requiring her participation in unlawful and fraudulent mortgage lending practices.

Currently pending is Mortgage America’s Motion for Summary Judgment. In its Motion for Summary Judgment, Mortgage America seeks judgment as to Kotlin-ski’s claims in Count II (accounting) and Count IV (emotional distress/sexual harassment) of her Complaint. Regarding Count II, Mortgage America claims that Kotlinski possesses the documents needed to determine the total of the allegedly owed commissions and thus, can not claim any right to an accounting. Motion for Summary Judgment (“MSJ”), ¶¶ 53-55. In regards to Count IV, Mortgage America contends that the incidents alleged by Kotlinski to have given rise to her intentional infliction of emotional distress claim, even if true, do not constitute outrageous conduct required for a claim of intentional infliction of emotional distress and, alternatively, that Kotlinski can not prove her injury with the necessary medical evidence. MSJ, ¶¶ 41-43. After careful consideration, and for the reasons set forth below, Mortgage America’s Motion for Summary Judgment is granted in part and denied in part.

STANDARD OF REVIEW

Summary judgment may only be granted if the pleadings, depositions, answers to interrogatories, and admissions on file, together with any affidavits, show that there is no genuine issue as to any material facts and that the moving party is entitled to judgment as a matter of law. Fed. R.Civ.P. 56(c). Rule 56 mandates the entry of summary judgment, after adequate time for discovery and upon motion, against the party who falls to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

In considering a motion for summary judgment, the Court must examine the facts in a light most favorable to the non-moving party. International Raw Materials, Ltd. v. Stauffer Chemical Co., 898 F.2d 946, 949 (3d Cir.1990). The burden is on the non-moving party to demonstrate that the evidence creates no genuine issue of material fact. Chipollini v. Spencer Gifts, Inc., 814 F.2d 893, 896 (3d Cir.1987). The dispute is genuine if the evidence is such that a reasonable jury could return a verdict for the non-moving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A fact is material when it might affect the outcome of the suit under the governing law. Id. Where the nonmoving party will bear the burden of proof at trial, *300 the party moving for summary judgment may meet its burden by showing that the evidentiary materials of record, if reduced to admissible evidence, would be insufficient to carry the non-movant’s burden of proof at trial. Celotex, 477 U.S. at 322, 106 S.Ct. 2548. Once the moving party satisfies this burden, the burden shifts to the non-moving party, who must go beyond its pleadings and designate specific facts by the use of affidavits, depositions, admissions or answers to interrogatories, showing that there is a genuine issue for trial. Id. at 324,106 S.Ct. 2548.

FACTS PERTINENT TO MOTION FOR SUMMARY JUDGMENT

Viewing the facts in á light most favorable to the non-moving party, here Kotlin-ski, the following facts are relevant to deciding Mortgage America’s Motion for Summary Judgment. Mortgage America hired Kotlinski in October 1994 at the age of twenty-four (24) to work as a loan officer. Mortgage America’s principal offices are located in Bay City, Michigan, and the company maintains an office in Parkway Center, Pittsburgh, Pennsylvania.

Upon being hired by Mortgage America, Kotlinski was immediately put on a commission schedule with respect to her compensation for working as a loan officer. The commission arrangement at the time of Kotlinski’s hiring was that she received as her compensation fifteen percent (15%) of the loan origination fees paid by the borrower upon origination of the loan and fifteen percent (15%) of the premium received by Mortgage America upon the sale of the loan by Mortgage America to a third party investor. Thereafter, on or about November 27, 1996, Kotlinski’s commission/pay structure changed and she was paid commissions on the loans she originated on a sliding scale. The way the sliding scale was structured was that an employee was paid fifteen (15%) of the front and fifteen (15%) of the back as the month progressed and then, at the end of the month, the total income would be calculated and the employee, could receive an additional bonus based upon the income generated.

Kotlinski resigned from Mortgage America on December 23, 1996. Kotlinski claims that there were numerous loans that she originated prior to resigning and which subsequently were consummated and sold to investors and for which she was not paid a commission.

Kotlinski has submitted a list of account names which she claims she originated and thus is due a commission. This list, which Kotlinski developed from memory and assorted weekly “work in progress” lists, is not a complete record of the accounts which Kotlinski originated in 1996.

Regarding the emotional distress claim, Kotlinski testified at her deposition that Mortgage America condoned and, in fact, required loan officers to commit fraudulent and/or unlawful mortgage lending practices. According to Kotlinski, her continued employment depended on her engaging in the aforesaid practices. She claims Mortgage America’s motto, “there is a way to make it work,” evolved into a policy in which loan originators were forced to alter tax and other documents to insure sufficient applicant income.

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40 F. Supp. 2d 298, 4 Wage & Hour Cas.2d (BNA) 1462, 1998 U.S. Dist. LEXIS 15365, 1998 WL 1029222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kotlinski-v-mortgage-america-inc-pawd-1998.