1407 C.D. 2017
Pa. Commw. Ct.Oct 17, 2018Background
- Four municipalities (Maxatawny, Topton, Lyons, later joined by Upper Macungie) formed the Berks‑Lehigh Regional Police Commission to operate a regional police department; the Commission and the Berks‑Lehigh Regional Police Officers Association (the Association) entered a 3‑year CBA covering 2011–2013.
- Upper Macungie sought greater voting control, threatened withdrawal, and in 2012 took steps to form its own police department; the Commission voted unanimously to dissolve and the regional department disbanded effective December 31, 2012; many former Commission officers were offered positions by Upper Macungie on lesser terms.
- The Association pursued PLRB/arbitration proceedings (an impact arbitration award) and later sued the municipalities for breach of the CBA, claiming lost wages/benefits for officers; Maxatawny asserted a cross‑claim for attorneys’ fees incurred in dissolving the Commission.
- At non‑jury trial the trial court awarded the Association $564,084.07 (including interest) for breach of the CBA and ordered Upper Macungie to reimburse Topton and Maxatawny for attorneys’ fees, reasoning Upper Macungie’s conduct caused a premature dissolution and breached the CBA and Charter provisions.
- On appeal the Commonwealth Court reversed: it held the CBA did not guarantee continued employment through 2013 (so no breach damages to the Association) and that attorneys’ fees were not recoverable because neither the Charter nor amendment authorized fee shifting.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| (1) Were breach damages recoverable for early disbandment? | Association: CBA was a 3‑year agreement; disbandment before end of 2013 breached the CBA and caused damages. | Upper Macungie: CBA does not guarantee continued employment; Commission could cease operations; disbandment ended the CBA's application. | Reversed: CBA sets terms for the period but is not a contract guaranteeing continued individual employment; no breach-based damages. |
| (2) Was the amount awarded ($564,084.07) proper? | Association: trial court’s damage calculation based on lost wages/benefits and interest was proper. | Upper Macungie: amount unsupported because no contractual guarantee; calculations rest on wrongful breach. | Not reached on merits—court concluded no entitlement to damages, so award reversed. |
| (3) Is Upper Macungie solely liable for officers’ damages and other participants’ losses? | Association/Trial Ct: Upper Macungie’s withdrawal forced dissolution and it should bear full responsibility. | Upper Macungie: withdrawal/right to withdraw under Charter; dissolution vote was unanimous and withdrawal never became effective. | Reversed: record shows Commission dissolved by unanimous vote; withdrawal did not occur as unilateral breach supporting sole liability. |
| (4) Can Topton/Maxatawny recover attorneys’ fees from Upper Macungie? | Maxatawny/Topton: Amendment to Charter makes withdrawing participant responsible for continuing obligations and costs, including fees. | Upper Macungie: Charter/amendment do not authorize fee shifting; American Rule bars recovery absent express provision. | Reversed: no express contractual or statutory authorization for attorneys’ fees found; fee award was an abuse of discretion. |
Key Cases Cited
- Swift v. Dep’t of Transp., 937 A.2d 1162 (Pa. Cmwlth.) (CBA duration clause interpretation cited by parties)
- Amalgamated Ass’n of Street, Elec. Ry. & Motor Coach Emps. of Am. v. Pittsburgh Rys. Co., 142 A.2d 734 (Pa.) (collective bargaining agreement generally not a contract of employment)
- J.I. Case Co. v. Nat’l Labor Relations Bd., 321 U.S. 332 (collective bargaining establishes terms but ordinarily not individual employment guarantees)
- Herd Chiropractic Clinic, P.C. v. State Farm Mut. Auto. Ins. Co., 64 A.3d 1058 (Pa.) (Pennsylvania follows American Rule: attorneys’ fees are not recoverable absent statute, agreement, or exception)