Potvin v. Wright's Sound Gallery, Inc.

568 So. 2d 623, 11 A.L.R. 5th 1085, 30 Wage & Hour Cas. (BNA) 271, 1990 La. App. LEXIS 2087, 1990 WL 140233
CourtLouisiana Court of Appeal
DecidedSeptember 26, 1990
Docket21,768-CA
StatusPublished
Cited by35 cases

This text of 568 So. 2d 623 (Potvin v. Wright's Sound Gallery, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Potvin v. Wright's Sound Gallery, Inc., 568 So. 2d 623, 11 A.L.R. 5th 1085, 30 Wage & Hour Cas. (BNA) 271, 1990 La. App. LEXIS 2087, 1990 WL 140233 (La. Ct. App. 1990).

Opinion

568 So.2d 623 (1990)

Dennis POTVIN Plaintiff-Appellee,
v.
WRIGHT'S SOUND GALLERY, INC. Defendant-Appellant.

No. 21,768-CA.

Court of Appeal of Louisiana, Second Circuit.

September 26, 1990.
Rehearing Denied October 25, 1990.

*624 Peatross, Greer & Frazier by L. Edwin Greer, Shreveport, for defendant-appellant.

Daye, Bowie & Beresko by David P. Daye, Shreveport, for plaintiff-appellee.

Before SEXTON, NORRIS and LINDSAY, JJ.

SEXTON, Judge.

The defendant, Wright's Sound Gallery, Inc., appeals a judgment in favor of the plaintiff, Dennis Potvin, a former employee of the defendant, for unpaid wages, penalties, and attorney fees pursuant to LSA-R.S. 23:631 and 632. The defendant's reconventional demand for damages for violation of the Louisiana Unfair Trade Practices Act, LSA-R.S. 51:1401, et seq., was dismissed.[1] We affirm.

Wright's Sound Gallery is a corporation operating an electronics store, the stock in which is owned by Thomas and Brenda Bartle; the store both sells and services *625 electronic merchandise. Potvin was employed in the service department at Wright's from February 1, 1985, until April 13, 1988. At the time of his resignation, Potvin was earning $2000 a month, plus a ten percent commission on all service labor invoices. Additionally, Potvin had accrued two weeks (ten working days) vacation. This vacation, earned during the preceding year, February 1, 1987, to February 1, 1988, could have been taken any time during the ensuing year, February 1, 1988, until February 1, 1989.

Potvin gave Mr. and Mrs. Bartle written notice of his resignation on April 4, 1988, but remained employed by Wright's until April 13. On Potvin's final day of employment, he received a paycheck which comprised only his base salary. On April 18, 1988, Potvin made written demand upon Wright's through Mrs. Bartle for $952.30, the monetary value of a two-week paid vacation, and $192.04, ten percent of the service labor performed between April 1-13, 1988. Two checks, one in each of the requested amounts, were issued to Potvin by Mrs. Bartle on April 19, 1988. Prior to their being cashed, the defendant issued a stop payment order on both of the checks.

Potvin then initiated the instant lawsuit, seeking his unpaid commissions and vacation pay, plus the statutory penalties and attorney fees provided in LSA-R.S. 23:632. Wright's answered the petition, denying the wages were owed to Potvin and made a reconventional demand, alleging Potvin had violated the Louisiana Unfair Trade Practices Act, LSA-R.S. 51:1401, et seq. This claim stemmed from allegations that Potvin was moonlighting while employed at Wright's, servicing and repairing electronic equipment in competition with Wright's.

Following a bench trial, the trial court held for the plaintiff and rejected the reconventional demand. The trial court resolved all factual disputes in Potvin's favor. A judgment was signed awarding Potvin $192.04 in unpaid commissions, $952.30 in vacation entitlements, $11,206.80 in penalties, $4,500.00 in attorney fees, plus interest and costs.

The issues raised by this appeal are (1) whether the trial court erred in finding Potvin was entitled to unpaid commissions; (2) whether the trial court erred in finding Potvin was entitled to vacation benefits; (3) whether the trial court erred in finding Wright's was not in good faith in withholding these payments and thereby awarding penalties to Potvin; (4) whether, assuming they were appropriate, the trial court erred in calculating the penalties; (5) whether the trial court erred in awarding attorney fees; and (6) whether the trial court erred in dismissing Wright's unfair trade practices claim.

We note at the outset that several of the issues presented involve factual determinations. Our review is therefore guided by the mandate that an appellate court may not set aside a trial court's finding of fact in the absence of manifest error or unless it is clearly wrong. Hence, where there is a conflict in testimony, reasonable evaluations of credibility and reasonable inferences of fact should not be disturbed on appeal. Rosell v. ESCO, 549 So.2d 840 (La.1989); Arceneaux v. Domingue, 365 So.2d 1330 (La.1978).

The original demand was brought pursuant to LSA-R.S. 23:631 and 632 which provide, in pertinent part:

§ 631. Discharge or resignation of employees; payment within three days after termination of employment
A. Upon the discharge or resignation of any laborer or other employee of any kind whatever, it shall be the duty of the person employing such laborer or other employee to pay the amount then due under the terms of employment, whether the employment is by the hour, day, week, or month, not later than three days following the date of discharge or resignation....
§ 632. Liability of employer for failure to pay; attorney fees
Any employer who fails or refuses to comply with the provisions of R.S. 23:631 shall be liable to the employee either for ninety days wages at the employee's daily rate of pay, or else for full wages from the time the employee's demand for *626 payment is made until the employer shall pay or tender the amount of unpaid wages due to such employee, whichever is the lesser amount of penalty wages. Reasonable attorney fees shall be allowed the laborer or employee by the court which shall be taxed as costs to be paid by the employer, in the event a well-founded suit for any unpaid wages whatsoever be filed by the laborer or employee after three days shall have elapsed from time of making the first demand following discharge or resignation.

The preliminary question, therefore, is whether the commission and vacation benefits were due at the time of Potvin's resignation under the terms of his employment.

TEN PERCENT COMMISSION

Commissions are considered wages for purposes of LSA-R.S. 23:631. Pearce v. Austin, 465 So.2d 868 (La.App. 2d Cir. 1985). Potvin received his commissions monthly, thereby falling within the requirement of LSA-R.S. 23:631 that the employment be by the hour, day, week, or month. But cf. Dore v. WHC Lease Service, Inc., 528 So.2d 235 (La.App. 3rd Cir.1988), and Van Dung v. Tel Ag Services, Inc., 407 So.2d 1339 (La.App. 3rd Cir.1981) (where the commission or bonus was calculated and payable annually and not by the hour, day, week, or month).

There is no dispute that the terms of Potvin's employment guaranteed him a ten percent commission on the service labor invoices and that from April 1-13, 1988 this commission totaled $192.04. Wright's argues, however, that because Potvin engaged in secondary employment without his employer's consent that Potvin violated his employment contract and, based upon Wright's interpretation of the contract, gave Wright's the authority to terminate Potvin without pay.

Potvin signed a document entitled "Employee Agreement" on May 2, 1985. Paragraph 7 of this document states that an employee may have no secondary employment unless cleared through the management. Paragraph 14 of the same document provides the sanctions for an employee's failure or refusal to abide by any of the employment regulations. Paragraph 14 provides: "I agree to abide by the above rules and I understand that observance of them is a condition of my continued employment. I understand that continued refusal to adapt to and to enforce company policy will be grounds for dismissal or suspension without pay."

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Bluebook (online)
568 So. 2d 623, 11 A.L.R. 5th 1085, 30 Wage & Hour Cas. (BNA) 271, 1990 La. App. LEXIS 2087, 1990 WL 140233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potvin-v-wrights-sound-gallery-inc-lactapp-1990.