R.P. Clarke Personnel, Inc. v. Commonwealth National Bank

559 A.2d 560, 384 Pa. Super. 524, 1989 Pa. Super. LEXIS 1441
CourtSupreme Court of Pennsylvania
DecidedMay 23, 1989
Docket00554, 00561
StatusPublished
Cited by11 cases

This text of 559 A.2d 560 (R.P. Clarke Personnel, Inc. v. Commonwealth National Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R.P. Clarke Personnel, Inc. v. Commonwealth National Bank, 559 A.2d 560, 384 Pa. Super. 524, 1989 Pa. Super. LEXIS 1441 (Pa. 1989).

Opinion

HESTER, Judge:

Commonwealth National Bank, situate in York, Pennsylvania, and now an affiliate of Mellon Bank, N.A. (appellant), appeals from the judgment entered by the Court of Common Pleas of Dauphin County on July 14,1988, awarding an employment referral commission to R.P. Clarke Personnel, Inc., t/a Career Bankers, appellee. 1

Appellant argues that the trial court erred by not directing a verdict in its favor since there was no evidence to support the alleged referral contract entitling appellee to a fee, by refusing to instruct the jury that the employment agency must be the predominant “efficient procuring cause” for hiring the job applicant in order to be entitled to receive a fee, and by admitting irrelevant and self-serving business records of appellee. Appellant also argues that the trial court improperly permitted appellee to amend its complaint to conform to the evidence introduced at trial. We find no merit in any of appellant’s arguments and, accordingly, affirm.

The facts adduced at trial are as follows. In late 1983, appellant, due to its poor earnings and the consequent diminished possibilities for bonuses and security in employment, had difficulty obtaining a senior lender. Appellee, which specialized in banking placements, previously had solicited appellant for information about its job openings and had attempted to find suitable applicants whose backgrounds met appellant’s requirements. At least one of appellee’s referrals was hired for trust work and resulted in the payment of a referral fee. In 1983 or early 1984, *528 appellant informed appellee of its need for a senior lender. Consequently, appellee submitted several resumes.

In January, 1984, Timothy Price, a senior loan officer for an Indiana bank, wanted to return to the eastern United States for personal reasons. He simultaneously sent his resume and an introductory letter to several employment agencies that he knew, including appellee. Appellee acknowledged receipt of his resume and screened it. R. Peter Clarke, appellee’s president, immediately called Mr. Price and informed him about a job opening with an anonymous bank and requested permission to submit his resume. Mr. Price assented, and appellant submitted his resume, slightly altered, along with a cover letter outlining its customary fee requirements to appellant on February 2, 1984.

Several weeks later, Mr. Clarke called appellant’s personnel manager, Craig Hill, to question him about Mr. Price’s resume. Mr. Hill acknowledged receipt of the resume and asked to interview Mr. Price over the telephone on March 16,1984. Mr. Clarke then called Mr. Price and urged him to telephone Commonwealth National Bank on March 16,1984, providing him with Mr. Hill’s name and telephone number. Subsequently, Mr. Clarke confirmed with Mr. Hill that Mr. Price would call him on March 16. Mr. Hill customarily conducted telephone interviews before arranging a personal interview. Mr. Price did telephone Mr. Hill on March 16, 1984, but Mr. Hill was unavailable.

Prior to these events, on December 21, 1983, appellant had signed an employment search agreement with R.J. Evans Agency. This agreement entitled R.J. Evans to an exclusive right to present qualified candidates for sixty days in consideration for its best efforts to locate and present three qualified candidates for each job opening. R.J. Evans was entitled to a $3,000 commission upon presenting three candidates considered by appellant as qualified, regardless whether any one of them was hired. Appellee was never informed of R.J. Evans’s exclusive contract with appellant.

*529 R.J. Evans also had Mr. Price’s resume and submitted it to appellant. R.J. Evans contacted Mr. Price by telephone after Mr. Clarke contacted R.J. Evans about the opening. Mr. Price informed R.J. Evans that Mr. Clarke had already spoken to him about the job opportunity with appellant, but that he had not yet been interviewed. At this point, appellant realized that both appellee and R.J. Evans were recruiting the same individual, and appellant ceased returning appellee’s telephone calls. In addition, Mr. Price informed appellee that another agency was recruiting him for the position with appellant.

Subsequently, R.J. Evans set up a series of interviews for Mr. Price and made considerable effort to convince both Mr. Price and his wife of the merits of the York, Pennsylvania area and the terms offered by appellant. Mr. Price accepted the position in May, 1984.

At trial, appellee argued that appellant’s actions after March 16, 1984, prevented appellee from recruiting Mr. Price, even though it attempted to make further efforts at recruitment. Mr. Hill refused to return appellee’s telephone calls.

Following a jury verdict in favor of appellee, appellant filed timely motions for post-trial relief. Appellee also filed a cross-motion for post-trial relief. Pursuant to a stipulation by the parties, the trial court entered an order enlarging the record to include the requested charges by both parties, their objections, and the court’s rulings on them. Post-trial motions were denied, judgment was entered, and this appeal and cross-appeal followed.

Appellant initially argues that the case should not have been submitted to the jury since there was no evidence to support the allegation that it entered into a referral contract entitling appellee to a fee for placing Mr. Price. At most, appellant continues, an initial contact was requested, but this contact was not made and an interview was never scheduled through appellee agency. Appellant insists that R.J. Evans Agency did all the work to bring the parties together and is entitled to the referral fee. It argues that *530 mere negotiations by a broker that do not result in bringing parties together do not entitle the broker to a commission. See Christo v. Ramada Inns, Inc., 609 F.2d 1058 (3rd Cir.1979).

Appellant further argues that, as a matter of law, only one employment agency can be the efficient procuring cause of an employment transaction, and appellant can owe only one fee. See Earp v. Cummins, 54 Pa. 394, 93 A.M.Dec. 718 (1867). Consequently, appellant maintains that appellee’s efforts to refer Mr. Price did not legally entitle the agency to a fee, since R.J. Evans Agency is entitled to the fee.

As to the first allegation, we concur with the trial court’s determination that there was evidence from which the jury could conclude that appellant and appellee entered into a referral fee contract prior to any efforts by R.J. Evans Agency. Appellee's letter transmitting Mr. Price’s resume included specific terms evidencing a referral contract. These specifics included a referral fee of twenty-five percent of Mr. Price’s annual earnings, a refund if the applicant were terminated within sixty days, and submission of an invoice for payment within fifteen days if the candidate were hired. Furthermore, appellee presented evidence that prior dealings had created the understanding between the parties that, once an initial interview was solicited, appellee would undertake reasonable and necessary steps requested by appellant to present the candidate for employment and earn the contingent fee if the applicant were hired.

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Bluebook (online)
559 A.2d 560, 384 Pa. Super. 524, 1989 Pa. Super. LEXIS 1441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rp-clarke-personnel-inc-v-commonwealth-national-bank-pa-1989.