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Zimmerman v. Eagle Mtge. Corp.5/3/1996
FAIN, Judge.
Defendants-appellants and cross-appellees Eagle Mortgage Corporation ("Eagle") and Paul David Musgrave appeal from a judgment of the trial court in which $9,708.14 was awarded to plaintiff-appellee and cross-appellant Thomas C. Peterangelo and the sums of $21,101.11 and $125 were awarded to plaintiff-appellee and cross-appellant Kevin Schilling. Eagle and Musgrave contend that the judgment in favor of Peterangelo and Schilling is against the manifest weight of the evidence and is contrary to law. Specifically, Eagle contends that it did not breach its employment agreements with Peterangelo and Schilling when it terminated them, and that any issues regarding compensation for their services were controlled by their employment agreements. Further, Eagle contends that the trial court did not correctly calculate Peterangelo's and Schilling's damages and improperly awarded Peterangelo a judgment for a bonus referenced in his employment agreement. Finally, Eagle and Musgrave contend that the trial court erred by piercing Eagle's corporate veil and holding Musgrave, its sole shareholder, personally liable.
Plaintiff-appellees and cross-appellants Doug Sherer, Peterangelo, and Schilling cross-appeal from various judgments of the trial court. Specifically, they contend that the trial court erred in its calculation of "front pay" for Peterangelo and Schilling. Also, they contend that, contrary to the trial court's conclusion, Eagle's deductions of expenses from their paychecks were improper in light of ambiguities found in their employment contracts. Further, Sherer, Peterangelo, and Schilling contend that the trial court erred by placing upon them the burden of proof in showing that Eagle's payroll deductions were improper. Finally, thesappeal from the trial court's conclusion that Eagle did not Wrongfully discharge Sherer.
We conclude that there is ample evidence to support the trial court's findings and conclusions with respect to Eagle's and Musgrave's assignments of error. Accordingly, those assignments of error are overruled.
With respect to Sherer's, Peterangelo's, and Schilling's assignments of error, although we do not find their other assignments of error to be well taken, we agree with them that the trial court erred by imposing upon them the burden of proving that Eagle's expense deductions from their paychecks were improper. Accordingly, the judgment of the trial court is reversed, and this cause is remanded for the trial court to determine the validity and amount of deductions made by Eagle from Sherer's, Peterangelo's, and Schilling's paychecks in light of the terms in their employment agreements, with the burden of proof falling upon Eagle and Musgrave to show that each deduction was proper.
Eagle Mortgage Corporation was incorporated on November 21, 1990, to engage in the business of originating residential mortgage loans. Mark Zimmerman, Doug Sherer, Thomas C. Peterangelo, Kevin Schilling, and Brenda McComb were all Loan Officers of Eagle Mortgage Corporation, whose President and sole shareholder was Paul David Musgrave. As employees, they all signed employment agreements of similar length and content except for the range of compensation, which varied between salary, salary with commission, full commission, and full commission with annual bonus. Among the provisions contained in the agreements were the following:
"V. Term: Termination
"A. The term of this Agreement shall be one year. Thereafter, it shall automatically renew for periods of one year unless one Party has given the other written notice of its or his intent to terminate at least sixty days prior to th
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