Tomasko v. Ira H. Weinstock, P.C.

357 F. App'x 472
CourtCourt of Appeals for the Third Circuit
DecidedDecember 18, 2009
DocketNo. 08-4673
StatusPublished
Cited by8 cases

This text of 357 F. App'x 472 (Tomasko v. Ira H. Weinstock, P.C.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tomasko v. Ira H. Weinstock, P.C., 357 F. App'x 472 (3d Cir. 2009).

Opinion

OPINION OF THE COURT

JORDAN, Circuit Judge.

This case, before us for a third time, involves an appeal from an order of the [473]*473United States District Court for the Middle District of Pennsylvania awarding attorneys’ fees to appellee Ronald T. Tomas-ko, who prevailed in part on his claims under the Employee Retirement Income Security Act (“ERISA”) against his former employer, Ira H. Weinstock, P.C., and its principal, Ira H. Weinstock (collectively ‘Weinstock”). Weinstock also appeals the District Court’s amendment of its order, which allowed the portion of fees originally owed to Attorney Michael A. Koranda to be paid to the law firm of Tomasko & Koranda, P.C. For the following reasons, we will affirm.

I. Background

As the facts are well known to the parties, we recount here only those facts necessary for the disposition of the present appeal.1 Tomasko was employed as an associate with the law firm Ira H. Wein-stock, P.C. from August 13, 1991 through his resignation on January 2, 1997. He participated in two defined contribution pension plans during his employment, the Ira H. Weinstock Money Purchase Plan and the Ira H. Weinstock Profit Sharing Plan. Ira H. Weinstock, P.C. functioned as the plans’ sponsor and administrator while Mr. Weinstock acted as trustee of the plans. Both plans provided that the employer’s contributions for a given employee for each plan year ending on December 31 would be determined based on the employee’s W-2 compensation for that plan year. The plans require the employee to remain employed for the entirety of the plan year in order to receive contributions.

In 1993, Weinstock agreed to give To-masko a $3,000 salary increase, paid in biannual bonuses, and to award Tomasko additional bonuses, in amounts left to Weinstock’s discretion, based on work that Tomasko would do and for which he would submit proof when he requested such a bonus. Tomasko resigned on January 2, 1997 to begin his own law firm, after misleading Weinstock as to his intention to remain employed by Ira H. Weinstock, P.C. Before resigning, however, he submitted a request for a bonus in the amount of $14,200.00 for his work on cases that were settled in the fourth quarter of 1996. On January 17, 1997, Mr. Weinstock, in his discretion, had the firm pay Tomasko a bonus of $6,100.00 ($1,500.00 of which represented Tomasko’s bi-annual bonus), which was included as income on Tomas-ko’s 1997 W-2 instead of his 1996 W-2. Since Tomakso resigned before the end of 1997, Weinstock was thus able to avoid making a contribution to the plans based on this $6,100.00.

Tomasko sued Weinstock, eventually asserting three claims: (1) a claim pursuant to the Pennsylvania Wage Payment and Collection Law (“WPCL”), 42 Pa. Cons. Stat. § 260.1, et seq. to collect the additional $8,100 Tomasko believed was owed to him; (2) an ERISA claim to recover benefits due under the pension plans for the $6,100 Tomasko earned and the additional $8,100 he believed he was owed, see 29 U.S.C. § 1132(a)(1)(B); and (3) an ERISA claim for breach of fiduciary duty, see 29 U.S.C. § 1132(a)(2). On December 18, 2001, after a bench trial, the District Court found in favor of Tomasko on his ERISA claim to recover pension benefits, concluding that Weinstock owed contributions to the pension plans for the $6,100.00.2 In so [474]*474holding, the Court rejected Weinstock’s interpretation of the plans — that contributions were not due until compensation was paid as opposed to earned — because such an interpretation was inconsistent with the way Weinstock normally made contributions under the plans. Additionally, the Court concluded that Weinstock breached a fiduciary duty “by deliberately not making the appropriate contribution to [To-masko’s] pension accounts on money earned in 1996,” based on “resentment toward [Tomasko] for resigning.”3 However, the District Court rejected Tomasko’s WPCL claim because Tomasko failed to prove that he was entitled to any compensation beyond the $6,100 he had already received from Weinstock.

Both Tomasko and Weinstock subsequently moved for attorneys’ fees. The District Court concluded that, since each side prevailed on half of its case, neither party was entitled to fees. On appeal, we affirmed the District Court’s judgment but vacated its order on attorneys’ fees because the District Court failed to undertake the five factor analysis governing the availability of fee awards in an ERISA litigation, set forth in our opinion in Ursic v. Bethlehem Mines, 719 F.2d 670 (3d Cir.1983).4 Tomasko I, 80 Fed.Appx. at 785. We therefore remanded the matter “to the District Court for consideration of the Ursic factors.” Id. at 783 (footnote omitted).

On remand, the District Court again denied attorneys’ fees in a September 5, 2006 memorandum and order. The District Court analyzed the Ursic factors, concluding that, although the factors weighed slightly in favor of Tomasko, it would not order fees to either party due to a lack of exceptional circumstances warranting a fee. The parties cross-appealed the Court’s denial of fees. Tomasko II, 255 Fed.Appx. at 678.

We affirmed the District Court’s refusal to award fees to Weinstock but vacated and remanded the portion of the District Court’s decision denying fees to Tomasko. Id. We concluded that the District Court misstated the law, and that its error might have impacted the Court’s ruling. Id. at 680-81. Additionally, we found that the District Court erred in its application of three of the Ursic factors as to Tomasko’s motion for attorneys’ fees. Id. at 681-82.

On January 15, 2008, in light of our mandate, the District Court issued an order granting counsel twenty days to update the amount of counsel fees claimed. On January 28, 2008, Tomasko submitted an addendum to his motion for attorneys’ fees. The addendum included an up-to-date account of the time that Michael A. Koranda, lead counsel for Tomasko, had spent on the case and an account of the time invested by Kathryn L. Simpson, who took over the case after Koranda’s untimely death in December 2006. The time sheets included hours spent on post-trial motions and appeals. Weinstock never filed a response. After holding oral argument on June 26, 2008, the Court issued a July 29, 2008, 2008 WL 2962909, memorandum and order granting attorneys’ fees to Tomasko. Taking the Ursic factors together, the Court found that Tomasko was entitled to recover attorneys’ fees.

In calculating the fee, the Court first concluded that Koranda and Simpson’s hourly rates were reasonable. Next, the [475]*475Court apportioned Koranda’s fees through trial to account for the fact that Tomasko was only partially successful on his claims. In this regard, the Court only allowed recovery for the time Koranda spent through trial on Tomasko’s ERISA claim for pension contributions as to the $6,100.5 Ultimately, the District Court awarded $40,712.50 to Koranda, $4,416.00 to Simpson and $117.70 in costs.

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357 F. App'x 472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tomasko-v-ira-h-weinstock-pc-ca3-2009.