GHPE Holdings, LLC, d/b/a Godby Heating Plumbing Electrical v. Jason Huxley
2017 Ind. App. LEXIS 28
| Ind. Ct. App. | 2017Background
- Huxley worked for Godby (Godby Heating Plumbing Electrical) from March 2012 to June 2013 and left voluntarily; his final earnings statement showed gross wages of $1,102.97 but net pay of $0 after tax and purported "voluntary" deductions.
- Huxley sued under Indiana Wage Payment Act (WPA) seeking $1,102.97 (including accrued vacation), liquidated damages (double), and attorney fees; Godby counterclaimed for $2,390.42 (including a $1,000 insurance deductible, tools, uniforms, charger) and sought treble damages/fees for alleged theft/conversion.
- The trial court granted summary judgment to Huxley on the WPA claim, awarding base wages of $986.71, liquidated damages (double), and attorney fees; it awarded Godby $1,557.73 on its counterclaim (tools/uniforms/charger) but denied the $1,000 deductible and treble damages/attorney fees.
- Godby appealed: (1) calculation of unpaid wages under the WPA (gross v. net after withholdings and validity of "voluntary" deductions); (2) sufficiency of counterclaim damages and entitlement to deductible; (3) entitlement to treble damages and attorney fees on counterclaim; (4) whether Huxley may recover appellate attorney fees.
- The court acknowledged employers must withhold mandatory taxes from wages but found Godby failed to justify $226.32 in voluntary deductions under Indiana wage-assignment statutes; remanded to recalculate net WPA recovery accounting for mandatory tax withholding only.
Issues
| Issue | Plaintiff's Argument (Huxley) | Defendant's Argument (Godby) | Held |
|---|---|---|---|
| Proper amount of unpaid wages under WPA (gross vs net) | Entitled to full unpaid vacation pay ($986.71 sought) plus liquidated damages and fees | Employer may deduct mandatory taxes and valid voluntary deductions, yielding a smaller net ($762.04 offered) | Employer may deduct mandatory tax withholdings; Godby failed to prove validity of voluntary deductions. Remand to calculate net wages after mandatory taxes only; Huxley entitled to double that net amount |
| Applicability of Trial Rule 68 to limit attorney fees | Huxley refused Godby’s offer; seeks fees for post-offer work | Godby contends its offer met offeree's entitlement so Huxley should not recover subsequent fees | T.R. 68 not satisfied because offer ($762.04) appears less than amount Huxley will be entitled to after correct tax deductions; Godby failed to show offer beat final judgment |
| Godby’s entitlement to $1,000 insurance deductible on counterclaim | N/A (Godby sought deductible) | Deductible owed because employee-manual/authorization made employee responsible if at fault | Trial court properly denied recovery of deductible; evidence did not unerringly show Huxley was at fault; affirmed |
| Treble damages and attorney fees for criminal conversion on counterclaim | N/A | Huxley knowingly/ intentionally converted Godby property (tools/uniforms/charger) warranting treble damages and fees | Rejected: evidence showed bona fide contract/dispute and lacked required mens rea for criminal conversion; trial court properly denied treble damages and fees |
Key Cases Cited
- Siner v. Kindred Hosp. Ltd. P’ship, 51 N.E.3d 1184 (Ind. 2016) (Indiana summary-judgment standard and heavy burden on movant)
- St. Vincent Hosp. & Health Ctr., Inc. v. Steele, 766 N.E.2d 699 (Ind. 2002) (WPA penalties apply when employer pays less than agreed wages)
- E & L Rental Equip., Inc. v. Bresland, 782 N.E.2d 1068 (Ind. Ct. App. 2003) (statutory requirements for valid wage assignments/deductions)
- Safayan v. Indiana Dep’t of State Revenue, 654 N.E.2d 270 (Ind. 1995) (employer duty to deduct, retain, and pay employee income taxes)
- Gerbec v. United States, 164 F.3d 1015 (6th Cir. 1999) (awards of back pay subject to FICA withholding)
- French-Tex Cleaners, Inc. v. Cafaro Co., 893 N.E.2d 1156 (Ind. Ct. App. 2008) (elements and mens rea required for civil recovery under criminal conversion statute)