Mader Group, Inc. v. Gekoski

32 Pa. D. & C.3d 579, 1981 Pa. Dist. & Cnty. Dec. LEXIS 18
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedSeptember 24, 1981
Docketno. 3038
StatusPublished

This text of 32 Pa. D. & C.3d 579 (Mader Group, Inc. v. Gekoski) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mader Group, Inc. v. Gekoski, 32 Pa. D. & C.3d 579, 1981 Pa. Dist. & Cnty. Dec. LEXIS 18 (Pa. Super. Ct. 1981).

Opinion

KING, J.,

FINDINGS OF FACT

1. Plaintiff, The Mader Group, Incorporated, is a Pennsylvania Corporation with its principal place of business at One Station Circle, Narberth, Pa.

[581]*5812. Defendant, Joseph H. Gekoski, is an incorporator and President of defendant, Strategic Management Group, Incorporated, hereinafter referred to as SMG.

3. Defendant, Michael B. Aronson, is an incorporator, a principal owner and Vice President of SMG.

4. Defendant SMG is a corporation incorporated on or about June 22, 1981, by defendants Gekoski and Aronson and is engaged in the same business as plaintiff Mader Group.

5. Plaintiff Mader Group is in the business of providing “customer seminars, video based programs, computerized management simulations and consulting services” to corporations in various industries and business activities in the United States and other countries.

6. Plaintiff Mader Group was founded by the late Christopher Mader in or about 1976, and since its founding, has specialized in the area of executive education, with emphasis on “conducting custom tailored seminars for over seventy clients across a broad range of industries”.

7. Defendant Gekoski, until July 16, 1981, was employed by The Mader Group in the respective positions of Director of Marketing, and Vice President in charge of marketing, operations, client services and new product development.

8. Mader Group is a closely held corporation, having been incorporated under the laws of the Commonwealth of Pennsylvania on October 26, 1978, with an authorized stock issue of 2,000 shares.

9. Christopher Mader was the owner of 1,000 shares pursuant to the execution of a subscription agreement dated October 30, 1978.

[582]*58210. Defendant Aronson, during his employment with The Mader Group, was the owner of 100 shares of stock of The Mader Group.

11. Defendant Aronson was employed by The Mader Group as Director of Computer Resources and had the principal responsibility of developing computer programs and simulations while so employed.

12. In or about December, 1980, the aforementioned Christopher Mader died as a result of a fire which took place in a hotel where he was presenting a seminar of the type previously referred to.

13. Defendant Gekoski was employed by The Mader Group in March, 1980, in the position of Director of Marketing. In this capacity, he contacted client-customers and scheduled seminars. He was also responsible for the general operations of The Mader Group.

14. Defendant Gekoski had met Christopher Mader while defendant Gekoski was a student at the Wharton School of Finance, University of Pennsylvania.

15. Defendant Gekoski was hired for the salary of $39,000 per year plus participation in The Mader Group’s salary weighted bonus plan. An additional consideration of his employment was an option to buy, at book value, one hundred shares of stock of The Mader Group.

16. Defendant Gekoski was also apprised of semi-annual salary reviews at midyear and year-end with raises based on performance and inflation.

17. Defendant Gekoski, in June, 1980, some three months after joining The Mader Group, contacted his former employer, Proctor-Silex, and made arrangements to return to their employment, because “my expectations with The Mader Group did not materialize”.

[583]*58318. The arrangement to return to Proctor-Silex was accomplished without any prior discussion with his then employer, Christopher Mader.

19. Upon advising Christopher Mader of his plan to return to Proctor-Silex, his position was changed to Vice President and Director, with responsibility for overall marketing and operations of Mader Group, all client services and new product development.

20. By his own description, defendant Gekoski outlined his position as being one wherein he contacted the clients; called on them; learned what their needs were; learned with whom to talk; discussed prices and costs; discussed seminar format and tentative dates; discussed specific requests for particular seminar lecturers; discussed places or sites for holding the seminars and cancellation provisions; and was engaged in customer development activities. Everyone employed at Mader Group reported to him but Christopher Mader.

21. As Vice President with the aforementioned responsibilities, defendant Gekoski, over the period of his employment with The Mader Group, gained particularized knowledge of the needs of the Group’s clients and also gained knowledge with respect to the variables involved in setting both regular and special fees for the clients of the Group.

22. Defendant Gekoski had never met or contacted any person who made seminar commitments connected with any customer-clients of The Mader Group before his employment by Mader except one person who was connected with his former employer, Proctor-Silex.

23. There is no written evidence of documentation of any agreement between Dr. Mader and defendant Gekoski in June, 1980, wherein defendant Gekoski was promised a ten percent increase in sal[584]*584ary as of January 1, 1981, an increase in his stock option from 100 shares to 125 shares, a further promise of an automobile and authorization to sign company checks.

24. Subsequent to Dr. Mader’s death, both defendants continued in their respective positions previously described herein until their resignations on July 16, 1981.

25. Subsequent to Dr. Mader’s death, Susan Mader, in her several capacities as Board Member, shareholder and as personal representative of her late huband’s estate, made a decision to sell The Mader Group.

26. In or about February, 1981, a Boston based company, Data Resources, Inc., hereinafter referred to as DRI, had a representative sent to Mader Group to discuss the possibility of buying the Group.

27. Defendant Gekoski met with the representative of DRI but did not report this meeting to Mrs. Mader although he knew that she had offered the business for sale.

28. Mrs. Mader subsequently learned of the meeting between the DRI representative and Gekoski, but not from defendant Gekoski.

29. Defendant Gekoski and Aronson submitted a bid to purchase The Mader Group in late February or March, 1981, after discussing the subject of sale with Mrs. Mader.

30. In March, 1981, upon learning that her husband’s death was believed to be the result of arson, Mrs. Mader went away with her children for approximately one week in order to attempt to regain her composure after learning the fatal fire was not accidental.

31. Upon her return, she learned that, in her absence, defendant Gekoski had increased his own salary from $41,000 to $50,000.

[585]*58532. Defendant Gekoski had also increased the salary of defendant Aronson from approximately $26,000 to $32,500. Defendant Gekoski also increased the salaries of the other employees of The Mader Group. All the increases were retroactive to January 1, 1981.

33. Defendant made these increases without pri- or consultation with or agreement of Mrs. Mader who he knew to be absent, grief-stricken and in the process of attempting to either sell or wind up The Mader Group.

34.

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32 Pa. D. & C.3d 579, 1981 Pa. Dist. & Cnty. Dec. LEXIS 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mader-group-inc-v-gekoski-pactcomplphilad-1981.