Reading Radio, Inc. v. Fink

833 A.2d 199, 2003 Pa. Super. 353, 2003 Pa. Super. LEXIS 3181
CourtSuperior Court of Pennsylvania
DecidedSeptember 19, 2003
StatusPublished
Cited by97 cases

This text of 833 A.2d 199 (Reading Radio, Inc. v. Fink) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reading Radio, Inc. v. Fink, 833 A.2d 199, 2003 Pa. Super. 353, 2003 Pa. Super. LEXIS 3181 (Pa. Ct. App. 2003).

Opinion

OPINION BY

POPOVICH, J.:

¶ 1 Appellants David L. Kline, WEEU Broadcasting Co. (WEEU), and Reading Eagle Co. (Reading Eagle), appeal the judgment entered on July 31, 2002, in the Court of Common Pleas of Berks County. Upon review, we affirm.

¶2 The relevant facts and procedural history are as follows: Appellant Kline was the station manager/sales manager of Reading Radio, Inc., Vd/b/a/ WAGO Radio (WAGO). Part of Appellant Kline’s responsibilities included the supervision of the station’s sales representatives, including Molly S. Fink (Fink) and Isaac A. Ulrich (Ulrich). Fink and Ulrich were described as two of the best performing sales representatives in WAGO’s employ. Both Fink and Ulrich were subject to a covenant-not-to-compete agreement with WAGO that provided “upon job termination, [they] would not seek or accept employment involving ‘any radio or television broadcasting station located within a fifty (50) mile radius of Reading, Pennsylvania, for a period up to and including six (6) full calendar months’ ” commencing from the date of termination. However, Appellant Kline’s employment contract was not subject to the covenant-not-to-compete.

¶3 From 1989 to 1991, WAGO’s financial status faltered, and it was forced to move its operations out of Berks County as well as initiate other cost-saving measures. In mid-1990, Appellant Reading Eagle expressed an interest in purchasing WAGO and its FM affiliate, WIOV, from Reading Radio. The two companies held negotiations, but the sale never came to fruition.

¶4 In the midst of the sales negotiations, Appellant Reading Eagle offered Appellant Kline a position in its EagleLink division, which also included in its duties management of Appellant Reading Eagle’s A.M. station, Appellant WEEU. Appellant Kline accepted the position and tendered his resignation as station manager of WAGO but agreed to remain in WAGO’s employ for 30 days. Ostensibly, Appellant Kline made this agreement to effect a smooth transition. Appellant Kline made repeated assurances to his superiors at WAGO that he would continue to work as diligently for WAGO as he did in the past and that the station would be in better shape after he left it than it had been prior to his leaving.

¶ 5 During the 30-day period, Appellant Kline cancelled his bluegrass music program on WAGO without notice to his employers and transferred a significant car dealership advertising account to Appellant Reading Eagle. The transfer also included the use of a dealer vehicle that was for Appellant Kline’s use as station manager at WAGO. Aso within the 30-day period, Appellant Kline solicited Fink and Ulrich to work for Appellant WEEU *205 in identical sales positions that they held at WAGO in breach of the covenant-not-to-compete.

¶ 6 Fink and Ulrich tendered their resignations to Appellant Kline directly, who, although aware of the covenants-not-to-compete in Fink and Ulrich’s employment contracts, did not attempt to enforce them. Appellant Kline refused to enforce the covenants-not-to-compete even after questioned about his failure to do so by Richard Nichols (Nichols), Appellant Kline’s superior at WAGO. At approximately the same time as the loss of Fink and Ulrich, another top sales representative left WAGO on maternity leave. The loss of the majority of its sales staff caused WAGO to lose a number of advertising clients and advertising promotions, and, thus, the sales revenue and performance of WAGO faltered significantly. Expert testimony indicated that WAGO diminished in value by approximately $1.6 million dollars.

¶ 7 WAGO initiated this cause of action against Appellant Kline, Fink and Ulrich on November 30, 1991, via a Praecipe for a Writ of Summons. Thereafter, on June 20, 1991, Appellant Kline, Fink and Ulrich filed a Praecipe for a Rule to file a Complaint. The trial court then issued a Rule requiring WAGO to file its Complaint within 20 days. WAGO complied with the Rule and filed a Complaint against Appellant Kline, Fink and Ulrich on July 10, 1991. WAGO’s Complaint alleged the following acts on the part of Appellant Kline, Fink and Ulrich: civil conspiracy; breach of contract; breach of pre-resignation and post-resignation common law and fiduciary duties; tortious interference with WAGO’s contractual and business relationships; misappropriation of trade secrets and confidential information; and unfair competition. The Complaint sought both compensatory and punitive damages against Appellant Kline, Fink and Ulrich.

¶ 8 The trial court permitted WAGO to add Appellant Reading Eagle and Appellant WEEU as additional defendants on December 6, 1991. Thereafter, on December 20, 1991, WAGO filed an Amended Complaint that added Appellant Reading Eagle and Appellant WEEU as defendants. Following preliminary objections, WAGO filed a Second Amended Complaint. Appellants, Fink and Ulrich again filed preliminary objections, which the trial court denied on May 12,1992. Thereafter, on June 1, 1992, Appellants filed an Answer, New Matter and several Counterclaims. The Counterclaims alleged the following: WAGO interfered with Appellant Kline’s right to employment; WAGO breached its employment contract with Appellant Kline; and WAGO competed unfairly with Appellant Reading Eagle.

¶ 9 The case proceeded through pre-trial depositions and discovery during 1992-1994. The docket showed no activity after December 1994 until June 24, 1996, when Appellants filed a Motion for Judgment of Non-Pros against WAGO. The trial court denied this motion on August 15, 1996. Appellants filed a second Motion for Judgment of Non-Pros on December 16, 1997. In response, WAGO filed a Motion to Compel Answers to Interrogatories. Thereafter, the trial court denied Appellants’ Motion for Judgment of Non-Pros on January 22,1998.

¶ 10 The docket was again silent until January 11, 2000, when the trial court issued notice to the parties that the case was placed on the trial court’s termination list for docket inactivity. On March 3, 2000, the parties stipulated to a discovery schedule and agreed the case should remain open. Thereafter, on March 7, 2000, the trial court removed the case from the *206 termination list, and the ease continued through discovery.

¶ 11 Prior to trial, on October 16, 2000, the parties stipulated to judgment against Fink and Ulrich in the amount of $1.00, and the claims against them were satisfied. A jury trial was held from July 23, 2001, through July 31, 2001. Appellants did not assert any of their Counterclaims at trial. At the conclusion of trial, the jury returned a verdict in favor of WAGO in the amount of $300,000 compensatory damages. Punitive damages were assessed against Appellant WEEU in the amount of $5,000 and against Appellant Reading Eagle in the amount of $800,000. The total verdict was $1,105,000.

¶ 12 Appellants filed timely post-trial motions on August 9, 2001, which the trial court denied on May 14, 2002. On June 4, 2002, Appellants filed a Notice of Appeal to this Court. The trial court did not order Appellants to file a Concise Statement of Matters Complained of on Appeal pursuant to Pa.R.A.P. 1925(b), and it did not file a new opinion in this case. 1

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Bluebook (online)
833 A.2d 199, 2003 Pa. Super. 353, 2003 Pa. Super. LEXIS 3181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reading-radio-inc-v-fink-pasuperct-2003.