McCourt Manufacturing Corp. v. Rycroft

284 S.W.3d 84, 102 Ark. App. 272, 2008 Ark. App. LEXIS 401
CourtCourt of Appeals of Arkansas
DecidedMay 14, 2008
DocketCA 07-1182
StatusPublished
Cited by2 cases

This text of 284 S.W.3d 84 (McCourt Manufacturing Corp. v. Rycroft) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCourt Manufacturing Corp. v. Rycroft, 284 S.W.3d 84, 102 Ark. App. 272, 2008 Ark. App. LEXIS 401 (Ark. Ct. App. 2008).

Opinion

Sam Bird, Judge.

McCourt Manufacturing Corporation (hereinafter the Corporation) brings this appeal from a judgment in favor of its former employee, appellee Dave Rycroft. The judgment awarded Rycroft $12,498.15 in unpaid commissions and a statutory penalty of $164.38 per day from the date of his termination until payment of the $12,498.15 to him. The Corporation raises two points pertaining to the imposition of the penalty under Ark. Code Ann. § 11-4-405 and a third point regarding the court’s refusal to give jury instructions on its affirmative defenses. The Corporation contends that the trial court erred (1) in submitting to the jury the issue of the application of penalty provisions; (2) in extending the accrual of the penalty beyond sixty days; and (3) in refusing to submit instructions to the jury on the issues of waiver and estoppel. We reverse on the first point and hold that the trial court erred in refusing to grant the Corporation’s motion for directed verdict on the issue relating to the penalty provision of Ark. Code Ann. § 11-4-405. Our reversal on the first point renders the second point moot. We affirm on the third point and hold that the trial court did not err in refusing to submit instructions to the jury on the Corporation’s affirmative defenses of estoppel and waiver.

Rycroft began working for the Corporation as supervisor of sales on March 21, 2005, for a salary of $60,000 annually. According to Rycroft, the Corporation’s president, Charles McCourt (hereinafter referred to as McCourt), agreed to also pay him a commission of 0.5% of all gross sales, payable quarterly. When, at the end of June 2005, Rycroft received nó commission, he asked McCourt about it, and McCourt denied having agreed to pay him any commission. Rycroft continued working for the Corporation for the annual salary until he was fired on January 16, 2006.

On January 23, 2006, Rycroft’s attorney sent a letter addressed to Charles McCourt at McCourt Manufacturing Corporation. The letter stated, “Please send Mr. Rycroft’s unpaid wages to him c/o C. Brian Meadors, 315 N. 7th, Fort Smith, AR, 72901. Mr. Rycroft’s unpaid wages include the commissions, i.e., 0.5% of gross sales of McCourt Manufacturing during Mr. Rycroft’s employment there.” The letter was hand-delivered by a “runner” from the attorney’s office to the offices of the Corporation, where the runner placed it in the hands of an unknown man. The Corporation did not respond to the letter and did not pay Rycroft any of the requested commission.

Rycroft sued the Corporation for a 0.5% commission on the company’s gross sales from March 21, 2005, through January 16, 2006, plus a penalty for nonpayment of wages as provided in Ark. Code Ann. § 11-4-405. Paragraph 8 of Rycroft’s complaint included the following: “On January 23, 2006, a written demand for unpaid wages was hand delivered to the Defendant [the Corporation], A copy of that letter is attached as Exhibit A. There has been no response from the Defendant.” In its initial and first amended answer, the Corporation admitted the allegations of paragraph 8; in a second amended answer, it denied the allegations of paragraph 8.

The case was tried to a jury. Yolanda Bell, who worked for Rycroft’s attorney’s law firm, testified that she was the “runner” who took a letter to the Corporation’s office on Monday morning, either the 23rd or the 24th of January 2006, and she delivered it to “a guy” she did not know, who came out into the hallway from one of the offices. She said that the person to whom she delivered the letter was neither McCourt nor Mark Price and that she did not know whether the man was an employee of the Corporation.

Charles McCourt testified that the Corporation admitted the allegation of paragraph 8 in its initial response to the complaint and in its first amended answer, and a year later the Corporation denied receiving the letter on January 23. He agreed that the Corporation had received the letter but said, “[W]e don’t know who received it or the time. It is possible it could have been received by someone at McCourt Manufacturing on January the twenty-third.” The Corporation’s initial response and first amended answer were introduced into evidence through Mc-Court’s testimony.

Rycroft testified that, before he accepted employment with the Corporation, McCourt agreed to pay him a commission of 0.5% of gross sales. He said that, at first, McCourt was his supervisor but, at some point, McCourt gave Mark Price more authority and Price became his supervisor. Rycroft stated that, at the end of the second quarter of 2005, he was disturbed when he did not receive a commission check and that he sought out Price, who told him that he needed to see McCourt about the problem. Rycroft stated that, when he asked McCourt about his commission check, McCourt denied having agreed to pay him a commission. Rycroft stated that, although he was unhappy about McCourt’s failure to do what he had agreed to do, he (Rycroft) did not leave the job at that time; he did, however, decide to start looking for other employment.

Judy Joyce, who was responsible for the Corporation’s payroll, testified that she heard Rycroft “constantly” complain about not being paid what he thought he should receive. Another employee, Tammy Helliker, testified that Rycroft also told her that he was entitled to a commission.

Mark Price testified that he did not receive the January 23 letter, which was delivered when McCourt was in Florida. Price said he was charged with receiving important correspondence, “such as lawyer letterhead documents,” and took all of the Corporation’s important legal correspondence to McCourt when he was away. Price testified that he or Joyce opened the mail when it came in, he looked at what he took to McCourt, and the January 23 letter was not included. He stated that McCourt returned during the third or fourth week of February and showed him the letter during the last week of February, which was the first time he saw it. He said that he saw the letter a week-and-a-half to a month before the lawsuit was served “[i]f service of the lawsuit was in April,” and he acknowledged his deposition statement that he saw the complaint within a day or two of McCourt being served. Finally, Price testified that he thought the lawsuit was served in April, and he denied being aware that the date of service was February 25, 2006.

The Corporation moved for a directed verdict on Rycroft’s claim for the imposition of a penalty under Ark. Code Ann. § 11-4-405, arguing that there was no evidence that the request for payment was delivered to either Rycroft’s foreman or the keeper of his time. The court denied the motion. The Corporation requested an instruction to the jury on its waiver and estoppel defenses, which the court refused. The jury returned a verdict for Rycroft on his breach-of-contract action 1 and for his claim for the statutory penalty. The trial court entered a final judgment on the verdict, making the following findings and conclusions:

The parties had previously stipulated that if liability were found on Special Interrogatory No. 1, then the damages would be set at $12,498.15.
Under Ark. Code Ann. § 11-4-405, the statutory penalty accrues at the same rate as the discharged employee’s wages. This penalty accrues until the unpaid wages (i.e., the $12,498.15) are paid to the employee. See Ark.

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Related

McCourt Manufacturing Corp. v. Rycroft
2010 Ark. 93 (Supreme Court of Arkansas, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
284 S.W.3d 84, 102 Ark. App. 272, 2008 Ark. App. LEXIS 401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccourt-manufacturing-corp-v-rycroft-arkctapp-2008.