Reilly, D. v. Phila. Electrical Equipment Co.

CourtSuperior Court of Pennsylvania
DecidedJuly 13, 2016
Docket2276 EDA 2015
StatusUnpublished

This text of Reilly, D. v. Phila. Electrical Equipment Co. (Reilly, D. v. Phila. Electrical Equipment Co.) 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
Reilly, D. v. Phila. Electrical Equipment Co., (Pa. Ct. App. 2016).

Opinion

J-A11013-16

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

DAVID S. REILLY, IN THE SUPERIOR COURT OF PENNSYLVANIA

v.

PHILADELPHIA ELECTRICAL EQUIPMENT COMPANY, INC.,

Appellant No. 2276 EDA 2015

Appeal from the Judgment Entered August 31, 2015 In the Court of Common Pleas of Delaware County Civil Division at No(s): 13-3995

PHILADELPHIA ELECTRICAL EQUIPMENT IN THE SUPERIOR COURT OF COMPANY, INC., PENNSYLVANIA

Appellant

DAVID S. REILLY,

---------------------------------------------- DAVID S. REILLY,

No. 2528 EDA 2015

Appeal from the Order Entered July 1, 2015 In the Court of Common Pleas of Delaware County Civil Division at No(s): 12-2323, 13-3995 J-A11013-16

PHILADELPHIA ELECTRICAL EQUIPMENT IN THE SUPERIOR COURT OF COMPANY, PENNSYLVANIA

Appellant ---------------------------------------------- DAVID S. REILLY,

PHILADELPHIA ELECTRICAL EQUIPMENT COMPANY AND ROBERT G. GUARINI,

Appellants

No. 2601 EDA 2015

Appeal from the Order Entered June 30, 2015 In the Court of Common Pleas of Delaware County Civil Division at No(s): 12-2323 & 13-3995

BEFORE: SHOGAN, MUNDY, and FITZGERALD,* JJ.

MEMORANDUM BY SHOGAN, J.: FILED JULY 13, 2016

Philadelphia Electrical Equipment Company, Inc. (“PEECO”) has filed

an appeal in this employment termination dispute with David S. Reilly

(“Reilly”), and Reilly has filed a cross-appeal. We affirm the order awarding

attorneys’ fees but remand for further proceedings consistent with this

memorandum. ____________________________________________

* Former Justice specially assigned to the Superior Court.

-2- J-A11013-16

The trial court summarized the procedural history of this case as

follows:

The above-captioned consolidated matters arise out of [Reilly’s] employment and termination from [PEECO].[1] On April 29, 2011, Reilly instituted suit in the Court of Common Pleas of Philadelphia County, Pennsylvania. Therein, Reilly alleged PEECO violated the Pennsylvania Wage Payment and Collection Law (“WPCL”) [43 P.S. §§ 260.1-260.12,] by failing to pay Reilly sales and procurement commissions, hourly wages, and severance. [On July 5, 2011, Reilly filed an amended complaint.] On or about March 19, 2012, PEECO filed a separate complaint in the Court of Common Pleas of Delaware County, Pennsylvania seeking damages for replevin, conversion, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, breach of contract, and violations of the Uniform Trade Secrets Act and Computer Fraud and Abuse Act. By Order dated November 19, 2012, the Court of Common Pleas of Philadelphia upon consideration of Preliminary Objections filed by PEECO transferred Reilly’s claims to the Court of Common Pleas of Delaware County, Pennsylvania. The above-captioned matters were consolidated for both discovery and trial under Delaware County, Pennsylvania docket number 2012-2323 by Order dated June 20, 2013. ____________________________________________

1 In November of 2005, Reilly became an employee of PEECO as a sales engineer, with job responsibilities that included the purchasing and selling of new and used electrical power generation and distribution equipment. PEECO paid Reilly a base salary of $60,000.00 per year from 2005 through 2007. In December of 2007, Reilly’s title changed to Vice President of Business Development, however, his job responsibilities remained the same. Reilly and PEECO entered into a written employment agreement for the year 2008. PEECO paid Reilly a base salary of $70,000.00 per year from 2008 through 2010. In addition to his base salary, throughout his employment, Reilly also was paid commissions on the general sales of equipment and services in the amount of twenty percent of the gross profit. Reilly also negotiated and purchased equipment on behalf of PEECO, which was separate and apart from sales responsibilities. PEECO then refurbished the equipment and sold it to customers. On the procurement of that equipment, PEECO paid Reilly commissions that were five percent of the gross profit. On June 1, 2010, PEECO terminated Reilly’s employment.

-3- J-A11013-16

On January 17, 2014, following a five-day jury trial, a verdict was returned in favor of Reilly and against PEECO for violations of the WPCL in the amount of $2,692.31, which represents the severance to which Reilly claimed he was entitled pursuant to a 2008 Employment Agreement. However, a verdict was also returned in favor of PEECO and [Robert G.] Guarini[2] as counterplaintiffs and against Reilly in the same amount - $2,692.31. Thereafter, Reilly filed a Petition for Attorneys’ Fees and Costs pursuant to 43 P.S. § 260.1. PEECO and Robert G. Guarini filed a post–trial motion seeking to mold the verdict to $0.00.

Trial Court Opinion, 10/15/15, at 9-10.

On June 30, 2015, the trial court determined PEECO was required to

pay $128,962.00 in attorney fees and $2,815.32 in costs. However, the trial

court did not award fees and costs that were incurred by Reilly in the post-

trial proceedings. In addition, the trial court’s order directed that Reilly was

to pay PEECO prejudgment and post-judgment interest and denied the

motion to mold the verdict. On July 21, 2015, PEECO filed a motion seeking

reconsideration of the trial court’s June 30, 2015 order. On July 30, 2015,

PEECO filed a notice of appeal. Reconsideration was denied on August 6,

2015. Reilly filed a cross-appeal on the post-trial fees and costs on August

11, 2015. Judgment was entered on August 25, 2015. The parties and trial

court have complied with Pa.R.A.P. 1925. On November 13, 2015, this

Court entered an order designating Reilly as the lead appellant in these

consolidated appeals. ____________________________________________

2 Mr. Guarini was the president of PEECO.

-4- J-A11013-16

PEECO presents the following issues for our review, which we have

renumbered for ease of discussion:

1. Whether the court failed to exercise its discretion or abused its discretion when it declined to grant PEECO’s post trial motion in Reilly v. PEECO, to mold the verdict to $0 to accord the verdict with the intent of the jury.

2. Whether the court erred in its interpretation of the law or abused its discretion, when it awarded to David Reilly attorneys fees as costs attributed to David Reilly’s unsuccessful defense of the claims in PEECO v. Reilly or improperly considered the attorneys fees attributed to David Reilly’s defense of that separate matter as a counterclaim in the separate case of Reilly v. PEECO, which it was not.

3. Whether the court erred in its interpretation of the law when it awarded attorneys fees attributed to David Reilly’s unsuccessful defense of preliminary objections to venue filed by PEECO in the matter of Reilly v. PEECO, originally commenced in Philadelphia County.

4. Whether the court erred in its interpretation of the law when it awarded attorney’s fees to David Reilly as costs in Reilly v. PEECO, for attorneys fees attributed to David Reilly’s unsuccessful defense of PEECO’s counterclaim.

5. Whether the court abused its discretion when it did not reduce any attorneys fees awarded to David Reilly as costs to account for duplicative time spent by two attorneys when only one was necessary or appropriate.

PEECO’s Brief at 55-56.

In its first issue, PEECO argues that, because the jury awarded each

party damages in identical sums, the verdict should be molded to $0.00.

PEECO’s Brief at 80-83. PEECO contends that the jury “clearly wanted to

give a tie score.” Id. at 81. PEECO presents the following conclusion in

support of its claim:

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