Mrozek v. Eiter

59 Pa. D. & C.4th 121, 2001 Pa. Dist. & Cnty. Dec. LEXIS 171
CourtPennsylvania Court of Common Pleas, Westmoreland County
DecidedMay 3, 2001
Docketno. 5914 of 1998
StatusPublished

This text of 59 Pa. D. & C.4th 121 (Mrozek v. Eiter) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Westmoreland County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mrozek v. Eiter, 59 Pa. D. & C.4th 121, 2001 Pa. Dist. & Cnty. Dec. LEXIS 171 (Pa. Super. Ct. 2001).

Opinion

LOUGHRAN, P.J.,

Defendant, David T. Eiter, is a former employee of Disaster Specialists, a contracting business, owned by plaintiffs, Jeffrey Mrozek and Brian Mrozek. On October 2, 1998, Mr. Eiter tendered a letter of resignation to Disaster Specialists verbally informing the Mrozeks that he was going to work for Purofirst of Three Rivers. Eiter began working for Purofirst on or about October 12, 1998. Plaintiffs be[123]*123lieved Eiter’s acceptance of the position with Purofirst was in violation of an employment agreement that he had signed with plaintiffs in that the agreement contained a covenant not to compete which prohibited Eiter from performing services for any competitor of Disaster Specialists within a 100-mile radius of Disaster Specialists’ offices for two years after the end of his employment.

Disaster Specialists commenced this action by filing a complaint in equity on October 16, 1998 seeking enforcement of the noncompete provisions of the aforesaid employment agreement along with attorney fees pursuant to the agreement. The complaint was brought against Dave Eiter and Purofirst. Additionally, plaintiffs filed a motion for preliminary injunction seeking an order enjoining Dave Eiter from working for Purofirst.

On October 16, 1998, this court issued an order temporarily barring Eiter from working for Purofirst. On December 11 and December 14,1999, a trial was held in this matter. On February 4, 1999, findings of fact, discussion, conclusions of law and an order were issued. The preliminary injunction was dissolved and Eiter was permitted to work for Purofirst. This court found the noncompete provision was not enforceable and revised the restrictive covenant from a noncompetition clause to a nonsolicitation clause, barring Dave Eiter from soliciting former customers for a period of nine months.

Plaintiffs filed a motion for post-trial relief, which was denied on July 2, 1999. Plaintiffs then filed an appeal with the Superior Court asserting the trial court erred in revising the restrictive covenant from a noncompetition clause to a nonsolicitation clause; in restricting the non-solicitation clause to nine months; and in dismissing defendant Purofirst from the lawsuit.

[124]*124The Superior Court affirmed the trial court’s decision to revise the noncompete clause to a nonsolicitation clause and in dismissing Purofirst from the lawsuit. However, the. period of nonsolicitation was reinstated to the two years rather than nine months.

After the case was remanded to this court, the plaintiffs asserted a claim for attorney fees against Dave Eiter based on the attorney fee provision contained in the noncompete clause of the employment agreement. On December 13, 2000, this court held an evidentiary hearing and then issued a non-jury verdict awarding plaintiffs $30,384.13 in attorney’s fees and costs.

The defendant has filed a post-trial motion requesting that the verdict be set aside or that the court’s decision be reconsidered. The thrust of defendant’s argument is that the defendant, Dave Eiter, did not breach the agreement between the parties as he offered the plaintiffs exactly what the court ordered and that the bringing of the action was unreasonable as the result offered was what was ordered by the court.

On the specific subject of attorney fees provisions, Pennsylvania appellate courts have made it clear that where the parties have entered into an agreement which contains an attorney fees clause, a court should give affect to that provision if the party bringing the action is successful in demonstrating a breach of the agreement and obtaining relief.

See Creeks v. Creeks, 422 Pa. Super. 432, 619 A.2d 754 (1993).

As suggested by the Superior Court in Creeks, the inquiry into the award of attorney fees in circumstances where there is an attorney fee provision in a contract between the parties, the court need look no further than [125]*125(1) the language of the attorney fees clause and (2) whether the party seeking fees has prevailed in the underlying lawsuit.

The provision concerning attorney fees in the agreement between the parties contains a clear provision which states:

“Employee acknowledges that any breach of any obligation contained in this agreement is not adequately compensable by money damages, and employee agrees that any such breach shall cause the company irreparable injury for which the company shall be entitled to a preliminary injunction and temporary restraining order. In any action concerning an alleged breach by employee of any obligation in this agreement, irrespective of the requested remedy the company shall be entitled to reasonable counsel fees and costs of suit from the employee.” (emphasis supplied)

After hearing testimony and taking in evidence at the final injunction hearing on December 11 and 14, 1998, this court on February 4, 1999, issued an order and decree nisi which modified the breadth of the noncompetition clause to a “nonsolicitation” clause, i.e., a clause that, rather than barring Eiter from employment with a competitor of Disaster Specialists within the radius identified in the agreement, prevented Eiter from contacting or soliciting business from clients or referral sources of Disaster Specialists. The court further modified the length of time that the noncompetition provision would be in place, from two years to nine months.

On appeal, the Superior Court affirmed this court’s decision but found that the evidence presented did not support the modification of the duration of the noncompetition period to nine months. The Superior Court found [126]*126that the two-year duration of the noncompetition agreement was reasonable, and that this court should have enforced the two-year provision as written.

Eiter argues that Disaster Specialists did not prevail because this court and the Superior Court enforced the agreement only as a nonsolicitation clause, as opposed to a blanket noncompetition clause and as such, there is no breach of the agreement as is required by the attorney fee provision.

In opting to order more narrow relief than that requested by Disaster Specialists, this court was simply tailoring the remedy it was willing to provide. By no means did this court’s order constitute a finding that the underlying claim was in any way infirm. As crafted in the complaint, Disaster Specialists’ claim was for breach of contract, specifically the breach of the noncompetition clause. Clearly, because the court issued relief in some form, Disaster Specialists was successful in proving the elements of a breach of contract. Although the equitable remedy fashioned by this court did not reflect precisely what Disaster Specialists was seeking in the complaint, relief nevertheless was imposed. The nonsolicitation order was based upon Disaster Specialists’ establishment of a valid contract and the breach of that contract by Eiter. Tellingly, Disaster Specialists’ position as the prevailing party in this matter is bolstered by the fact that, on appeal, the Superior Court upheld the time period for the noncompetition provision set forth in the agreement.

The Pennsylvania case law as discussed mandates that the award of attorney fees should be enforced as written if they are clear and unambiguous in an agreement.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Creeks v. Creeks
619 A.2d 754 (Superior Court of Pennsylvania, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
59 Pa. D. & C.4th 121, 2001 Pa. Dist. & Cnty. Dec. LEXIS 171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mrozek-v-eiter-pactcomplwestmo-2001.