Uncommon Individual Found. v. Wiltshire, B.

CourtSuperior Court of Pennsylvania
DecidedJuly 8, 2016
Docket1331 EDA 2015
StatusUnpublished

This text of Uncommon Individual Found. v. Wiltshire, B. (Uncommon Individual Found. v. Wiltshire, B.) 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
Uncommon Individual Found. v. Wiltshire, B., (Pa. Ct. App. 2016).

Opinion

J-A11045-16

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

UNCOMMON INDIVIDUAL FOUNDATION IN THE SUPERIOR COURT OF AND RICHARD CARUSO PENNSYLVANIA

Appellants

v.

BRENDA-JAYNE WILTSHIRE No. 1331 EDA 2015

Appeal from the Order Entered April 21, 2015 in the Court of Common Pleas of Delaware County Civil Division at No(s): 2015-000404

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

MEMORANDUM BY FITZGERALD, J.: FILED JULY 08, 2016

Appellants, Uncommon Individual Foundation (“UIF”) and Richard

Caruso (“Caruso”), appeal from the order of the Delaware County Court of

Common Pleas denying their petition to strike, set aside, or modify an

arbitration award in favor of Appellee, Brenda-Jayne Wiltshire.1 Appellants

claim the arbitration panel (1) entered an award on matters outside the

scope of the arbitration agreement, specifically, ownership of intellectual

property related to “happinessPilot” (“‘happinessPilot’-IP”) (2) denied

* Former Justice specially assigned to the Superior Court. 1 Appellants also requested that the arbitration record be opened for legal insufficiency. Moreover, in a footnote in their petition, they requested modification of the award to reflect that Caruso was not individually liable. The trial court did not grant that request and we retain the plural form of Appellants for the purposes of this memorandum. We also note that the trial court separately granted Appellee’s cross-petition to confirm the arbitration award, enter judgment, and award attorney fees. J-A11045-16

Appellants discovery and a full and fair hearing on the merits, (3) ignored

uncontested testimony and controlling law regarding ownership of the

“happinessPilot”-IP, (4) ignored evidence and controlling law regarding

Appellee’s failure to mitigate damages, and (5) entered an award that was

based on contradictory findings and too vague to be enforceable. We affirm.

The factual background to this appeal is as follows. Caruso is the

founder, chairman, and president of UIF, a non-profit corporation organized

with a “focus on people helping people, to create mentoring projects, and to

help people live in a positive way.” Final Award in Arbitration (“Award”),

12/18/14, at 5 n.3. Additionally, Caruso was the president of The Provco

Group, an organization that was not a party in the underlying arbitration

proceeding, but which maintained a condominium at 210 Rittenhouse

Square, where Appellee resided. Caruso and Appellee met in the 1990’s,

and, in 1996, Caruso assisted Appellee in maintaining her residence at the

condominium. In 1999, Appellee began updating UIF’s website. In 2002

or 2003, UIF began paying Appellee a salary. Appellee and UIF entered into

an employment agreement effective January 1, 2007, designating Appellee

as a director of development.

In June 2010, Appellee took a leave of absence from UIF, although UIF

continued to pay her salary and provide benefits. In mid- to late-2010,

while on leave, Appellee began the “happinessPilot” project, which was

described as “a web-based delivery of digital and non-digital material

-2- J-A11045-16

designed to allow a user to navigate a ‘flight plan’ to personal happiness.”

Id. at 2. In February 2011, Appellee contacted Rosica Daskalova to assist

in the project. In May 2011, Appellee informed Caruso of the project and

thereafter reported periodically to him. In June 2011, UIF reimbursed

Daskalova for her previous work on the project and began paying her a

stipend. In August 2011, UIF assigned a full-time code writer, Scott

Bradley, to the “happinessPilot” project.

Appellee and UIF entered into employment agreement effective

January 1, 2012 (“2012 employment agreement”). Appellee was designated

the Chief Happiness Pilot Development and Marketing Officer, and was

responsible for:

a) Immediately transferring all the Happiness Pilot URL’s to the Employer GoDaddy URL account and agreeing that the Employer is the exclusive owner of all such URL’s; [and]

b) Development of the Employer’s Happiness Pilot Website[.]

2012 Employment Agreement, 1/1/12, at ¶ 2. Under the agreement,

Appellee was to serve “in the capacity of Founder, Chairman and CEO of

such Happiness Pilot project and its related activities.” Id.

The 2012 Employment Agreement contained the following arbitration

provision:

Except for injunctive relief as provided in paragraph 7 above, any disputes which may arise regarding the interpretation, application or enforcement of this Agreement (including any questions whether a dispute is arbitrable) shall be settled by final and binding arbitration.

-3- J-A11045-16

The arbitration shall be carried out by an arbitration panel of three members of the American Arbitration Association located in Western New York all of whom shall be independent and impartial and none of whom shall be appointed by either party, and shall be conducted in accordance with the commercial rules of that Association.

Id. at ¶ 9.

Relations between Appellee and UIF broke down in 2014. UIF stopped

paying her salary, terminated her benefits, and declared her in breach of the

2012 employment agreement. Appellee could no longer access

“happinessPilot.”

On March 19, 2014, Appellee filed a demand for arbitration in the

American Arbitration Association.2 Appellee asserted, in relevant part: (1)

she was the exclusive owner of “happinessPilot”; (2) UIF misappropriated

“happinessPilot”; (3) UIF breached the 2012 employment agreement; and

(4) she was entitled to $1.4 million in damages for unpaid salary, benefits,

loss of opportunity, and continued development costs for the balance of the

2 Appellee, when demanding arbitration, requested the panel be located in Philadelphia. She acknowledged that paragraph 9 of the 2012 employment agreement referred to venue in “Western New York.” Appellee’s Statement of Claim, 3/19/14, at 2. However, she asserted that description was ambiguous because no American Arbitration Association office existed in the area specified in the agreement and that Philadelphia was convenient for the parties. Id. The venue of the arbitration was not specified in the record. We again note that Appellants filed their petition to strike, set aside, or modify the award in Delaware County. See 42 Pa.C.S. §§ 7319(1), 7342(a).

-4- J-A11045-16

agreement’s term.3 See Award at 2; Appellee’s Statement of Claim,

3/19/14 at 7. Appellants answered Appellee’s statement of claims and

requested that “this matter be decided in [their] favor . . . , all property

rights to the work on HappinessPilot be awarded to UIF, [and] that

[Appellee] be declared in material breach of her agreement.” Appellants’

Answer to Appellee’s Statement of Claims, 4/8/14, at 18. Appellant also

asserted counterclaims seeking (1) $250,000 in breach of contract damages

and (2) an injunction preventing Appellee from disclosing or using any

confidential and proprietary information regarding “happinessPilot.” Award

at 3; Appellants’ Counterstatement of Claim, 6/2/14, at 3-4.

The arbitrators conducted several hearings, but did not record the

proceedings for transcription. Award at 4 n.2. On December 18, 2014, the

arbitration panel entered an award in Appellee’s favor. Regarding

“happinessPilot,” the arbitrators ordered:

As between [Appellee] and UIF, [Appellee] is the owner of the intellectual property of happinessPilot that was created between June 26, 2010 and August 31, 2011.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Harleysville Mutual Casualty Co. v. Adair
218 A.2d 791 (Supreme Court of Pennsylvania, 1966)
Snyder v. Cress
791 A.2d 1198 (Superior Court of Pennsylvania, 2002)
Andrew v. CUNA Brokerage Services, Inc.
976 A.2d 496 (Superior Court of Pennsylvania, 2009)
Delliponti v. DeAngelis
681 A.2d 1261 (Supreme Court of Pennsylvania, 1996)
Smaligo v. Fireman's Fund Insurance
247 A.2d 577 (Supreme Court of Pennsylvania, 1968)
Lowther Ex Rel. Lowther v. Roxborough Memorial Hospital
738 A.2d 480 (Superior Court of Pennsylvania, 1999)
Duquesne Light Co. v. New Warwick Mining Co.
660 A.2d 1341 (Superior Court of Pennsylvania, 1995)
F.J. Busse Co. v. Sheila Zipporah, L.P.
879 A.2d 809 (Superior Court of Pennsylvania, 2005)
MGA Insurance v. Bakos
699 A.2d 751 (Superior Court of Pennsylvania, 1997)
Elwyn v. DeLuca
48 A.3d 457 (Superior Court of Pennsylvania, 2012)
Ruspi v. Glatz
69 A.3d 680 (Superior Court of Pennsylvania, 2013)
Pisano v. Extendicare Homes, Inc.
77 A.3d 651 (Superior Court of Pennsylvania, 2013)
Toll Naval Associates v. Chun-Fang Hsu
85 A.3d 521 (Superior Court of Pennsylvania, 2014)
Savage v. Commercial Union Insurance
473 A.2d 1052 (Superior Court of Pennsylvania, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
Uncommon Individual Found. v. Wiltshire, B., Counsel Stack Legal Research, https://law.counselstack.com/opinion/uncommon-individual-found-v-wiltshire-b-pasuperct-2016.