MENTECKY v. CHAGRIN LAND, L.P.

CourtDistrict Court, W.D. Pennsylvania
DecidedAugust 28, 2023
Docket1:22-cv-00206
StatusUnknown

This text of MENTECKY v. CHAGRIN LAND, L.P. (MENTECKY v. CHAGRIN LAND, L.P.) 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
MENTECKY v. CHAGRIN LAND, L.P., (W.D. Pa. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA WILLIAM MENTECKY, ) Plaintiff, ) C.A. No. 22-206 Erie v. District Judge Susan Paradise Baxter CHAGRIN LAND, L.P., Defendants. )

MEMORANDUM OPINION

I. INTRODUCTION A. Relevant Procedural History Plaintiff William Mentecky initiated the present action on June 29, 2022, by filing a complaint against Defendants Chagrin Land, L.P. (“Chagrin”), an Ohio limited partnership: Tail Oak Associates, Inc. (“Tall Oak”), an Ohio corporation that serves as Chagrin’s general partner; and Michael Drusinsky (“Drusinsky’’), an Ohio resident who is identified as President and owner of Chagrin and Tall Oaks. Plaintiff subsequently filed an amended complaint against the same Defendants [ECF No. 11], which is the operative pleading in this case. Plaintiff alleges that Defendants owe him unpaid bonus and severance payments to which Plaintiff claims he became entitled under the terms of a unilateral contract that was made by Drusinsky, on behalf of Defendants, on or about August 29, 2021. The complaint contains five counts, all of which are asserted against Defendants Chagrin and Tall Oak: Count I - breach of contract; Count II - negligent misrepresentation; Count III - intentional misrepresentation; Count IV — violation of Pennsylvania’s Wage Payment Collection Law, 43 Pa. C.S. §§ 260.1, ef seq. (WPCL”; and Count V — quantum meruit/unjust enrichment.

On October 11, 2022, Defendants filed a motion to dismiss Plaintiffs amended complaint asserting that Plaintiff has failed to state a cause of action upon which relief may be granted against Defendants Chagrin and Tall Oak, and that Defendant Drusinsky should be dismissed from this case because Plaintiff has failed to assert any claim against him. [ECF No. 17]. Plaintiff has filed a memorandum of law in opposition to Defendants’ motion [ECF No. 20],! to which Defendants have filed a reply brief [ECF No. 21]. This matter is now ripe for consideration. B. Relevant Factual History’ At all times relevant to this case. Plaintiff was employed by Chagrin as a Land Manager (ECF No. 11, at € 11). On August 29, 2021, Drusinsky sent an email to Plaintiff and two other Chagrin employees, offering to pay them a year-end bonus and three times their annual salary if the sale of certain property of Chagrin’s (“Subject Property”) closed prior to year’s end and they remained employed with Chagrin as of December 31, 2021 (Id. at { 13). At the time, Plaintiff's annual salary was $80,000.00 ([d. at 414). On or about December 9, 2021, Plaintiff was advised by Chagrin’s CFO/Financial Manager, Keith Israelstam (“Israelstam”), that the sale of the Subject Property was imminent (Id. at €4] 19-20). In response, Plaintiff asked whether it was permissible for him to apply and interview with other companies to obtain employment to commence after December 31, 2021, in light of Drusinsky’s August 29, 2021, email (Id. at { 21). Israelstam responded, “A prudent

1 — In his memorandum, Plaintiff concedes that Defendant Drusinsky should be dismissed from this case, and it will be so ordered by the Court. The Court accepts as true all well-pleaded allegations of the Complaint, as is required for purposes of determining Defendants’ motion.

.

person would do that” (Id. at | 22). On December 13, 2021, Plaintiff secured other employment set to begin on or after January 1, 2022, and, thereafter, notified Drusinsky of the same (Id. at 24-25). On December 15, 2021, Drusinsky terminated Plaintiff because he “acceptled] employment with another ... company” prior to year’s end (Id. at § 26). On December 16, 2021, and again on December 17, 2021 Drusinsky demanded that Plaintiff return certain personal property that belonged to Chagrin, which required Plaintiff to drive 172 miles round trip each time (Id. at §€ 30-31). Although Plaintiff was reimbursed for his mileage, he was not compensated for the time he spent returning the personal property on December 16 and 17 (Id. at § 33). Ultimately, the Subject Property was sold before the year’s end, but Plaintiff was not compensated according to the terms of Drusinsky’s email of August 29, 2021, because he was not employed with Chagrin as of December 31, 2021. DISCUSSION Ay Count | — Breach of Contract Plaintiff's breach of contract claim is premised on Drusinsky’s email of August 29, 2021, which, according to Plaintiff, “created a unilateral contract with [Plaintiff], which conditioned acceptance upon [Plaintiffs] continued employment through the respective incentive period, □□□□ until December 31, 2021 (ECF No. 11, at { 35). Unlike bilateral contracts, which are premised on reciprocal promises, “unilateral contracts ... involve only one promise and are formed when one party makes a promise in exchange for the other party's act or performance. Significantly, a unilateral contract is not formed and is, thus, unenforceable until such time as the offeree completes performance.” Giant Eagle, Inc. v. Comm’r of Internal Revenue, 822 F.3d 666, 673 (3d Cir. 2016), quoting First

Home Savings Bank, FSB v. Nernberg, 648 A.2d 9, 14 (Pa. Super. 1994) (internal citations omitted). Once the offeree performs, however, the offer becomes irrevocable, the contract is completed, and the offeror is required to comply with its side of the bargain. Kemmerer v. ICI Americas, Ine., 70 F.3d 281, 287 (3d Cir. 1995). Defendant argues that Plaintiff's breach of contract claim must be dismissed because he “undeniably failed to remain employed with [Chagrin] through December 31, 2021,” and, thus, did not complete the performance necessary to establish an enforceable contract (ECF No. 18, at

p. 7). In opposition, Plaintiff argues that Defendants breached the covenant of good faith and fair dealing by terminating him prior to year’s end, thus preventing him from being able to complete his performance of the contract. (ECF No. 20, at pp. 6-13). Though Defendants object that Plaintiff “never alleges [in his amended complaint] that Defendants breached the covenant of good faith and fair dealing” (ECF No. 21, at p. 4), the Third Circuit has recognized that, “under Pennsylvania law, a ‘claim for breach of the implied covenant of good faith and fair dealing is subsumed in a breach of contract claim.’” Burton v. Teleflex, Inc., 707 F.3d 417 (3d Cir. 2013), quoting LSI Title Agency, Inc. v. Evaluation Servs., Inc., 951 A.2d 384, 391-92 (Pa. Super. 2008). Thus, a breach of such covenant is not required to be separately alleged. See, Lyon Fin. Servs., Inc. v. Woodlake Imaging, LLC, 2005 WL 331695, at *8 (E.D. Pa. Feb. 9, 2005) (observing that “Pennsylvania law does not ... recognize an independent claim for breach of the implied covenant of good faith and fair dealing” and that “[aJny claim for breach of the covenant of good faith and fair dealing is maintained as a breach of contract action” (citations omitted)); Seiple v. Community Hosp. of Lancaster, 1998 WL 175593, at *2 (E.D. Pa. Apr.14, 1998) (“[wJhile there may be an express or implied covenant of good faith and fair dealing in an

employment contract, a breach of such covenant is a breach of contract action, not an independent action for a breach of a duty of good faith and fair dealing”). “While it cannot override the express terms of a contract, the good faith duty is ‘an interpretive tool to determine the parties’ justifiable expectations in the context of a breach of contract action.’” Alexander v.

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MENTECKY v. CHAGRIN LAND, L.P., Counsel Stack Legal Research, https://law.counselstack.com/opinion/mentecky-v-chagrin-land-lp-pawd-2023.