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TAYLOR v. CENTRAL PENNSYLVANIA DRUG & ALCOHOL SERV

June 30, 1995

SANDRA J. TAYLOR and PAM M. JOHNSON, Plaintiffs
v.
CENTRAL PENNSYLVANIA DRUG AND ALCOHOL SERVICES CORPORATION and/or CENTRAL PENNSYLVANIA INDIVIDUAL/FAMILY COUNSELING, and WILLIAM L. CLARK, Defendants



The opinion of the court was delivered by: MCCLURE

 June 30, 1995

 BACKGROUND:

 Plaintiffs Sandra J. Taylor and Pam M. Johnson are former employees of defendant Central Pennsylvania Drug and Alcohol Services Corporation (CPDASC). Defendant William L. Clark was the president of CPDASC and its chief executive officer. Clark was plaintiffs' immediate supervisor. Plaintiffs allege that they were sexually harassed in the workplace by Clark and assert federal and state harassment claims on the basis of those allegations.

 Taylor alleges that she was discharged from her position for unlawful reasons. Johnson alleges that she was constructively discharged from her position with CPDASC due to Clark's intolerable behavior. *fn1"

 In an order dated September 27, 1994, this court granted plaintiffs' motion for sanctions and entered a default in their favor on liability issues. Under the court's ruling, only the determination of damages remains.

 STIPULATED FACTS

 The parties have stipulated to the following facts, which the court incorporates as part of its findings of fact: *fn3"

 1. CPDASC is a Pennsylvania business corporation which traded and did business, as "divisions," under several fictitious names, including:

 
-Tallyrand Retreat, an inpatient drug and alcohol treatment facility located in Bellefonte, Pennsylvania;
 
-Central Pennsylvania Individual and Family Counseling - an outpatient drug and alcohol treatment facility located in Bellefonte, Pennsylvania; and
 
-Central Pennsylvania Individual and Family Counseling - Mifflin/Juniata an outpatient drug and alcohol treatment facility with offices in Lewistown and Mifflintown, Pennsylvania.

 2. CPDASC also owned one-half the stock of Mainstream Counseling, Inc., an outpatient drug and alcohol treatment facility doing business in Huntingdon, Pennsylvania.

 3. Defendant Clark is a male, born April 21, 1944. He received a bachelor's degree from Ohio University in 1976 and a master's degree in education in rehabilitation counseling from Pennsylvania State University in 1980. He has completed all work toward his Ph.D. at Pennsylvania State University (Penn State) with the exception of his dissertation.

 4. Clark, the founder of CPDASC, was President and Chief Executive Officer throughout plaintiffs' tenure of employment.

 5. Taylor was employed by CPDASC from April 11, 1988 until her discharge on July 1, 1991. Taylor is female, born on December 29, 1940. She is a high school graduate with no additional education. She was employed by CPDASC as a bookkeeper. When she left the employ of CPDASC, her annual gross salary was $ 20,991.51, and her title was office manager.

 6. Johnson was employed by CPDASC from September 1, 1990 until her resignation on August 9, 1991. Johnson is a female, born on February 16, 1962. She is a high school graduate. Prior to her resignation from CPDASC she had obtained no additional education. She is now a candidate for a bachelor's degree from Penn State. She was employed by CPDASC as an accounts receivable clerk and was earning a gross annual salary of $ 16,443.00 when she left its employ.

 7. Plaintiffs were employed at CPDASC corporate headquarters located at 527 Willowbank Street in Bellefonte.

 8. Prior to July 1, 1991, CPDASC had a policy of awarding "step" raises of five (5%) percent to all of its employees on the anniversary of their employment. From July 1, 1991 to July 1, 1992, only twenty-five (25%) percent of the "best" employees received "step" raises. Step raises were discontinued altogether after July 1, 1992.

 9. CPDASC established a policy of awarding annual cost of living increases to all employees effective July 1 of each year. A 3% "cost of living" raise was awarded on July 1, 1992 and a 2% "cost of living" raise was awarded on July 1, 1993.

 11. CPDASC provided employees with health insurance benefits. Coverage for the employee's dependents could be obtained if the employee paid for the expanded coverage.

 12. During plaintiffs' employ their health insurance coverage cost CPDASC approximately $ 190.00 per month per plaintiff.

 13. Neither plaintiff incurred any covered medical expense subsequent to leaving CPDASC' employ.

 14. CPDASC had a policy of paying each of its employees an annual Christmas holiday bonus of $ 100.00.

 15. In November, 1991, Taylor went into business for herself, opening a consignment gift shop. That business was closed in June, 1992.

 16. In April, 1993, Taylor again went into business for herself, opening a discount greeting card shop. That business was closed in September, 1994.

 17. In September, 1991 Johnson obtained part-time employment with Counseling Services, Inc. and received wages totalling $ 569.43 from that position. Johnson resigned from that position on October 22, 1991, and accepted another part-time position with Lawrence T. Clayton and Counseling Associates, Inc. Her gross compensation from that position was: a) $ 2,357.25 in 1991; b) $ 10,714.30 in 1992; c) $ 9,398.26 in 1993. She received additional compensation from that position in 1993 totalling $ 4,868.50.

 18. CPDASC sold the Talleyrand Retreat division on or about August 31, 1992.

 19. CPDASC sold the Central Pennsylvania Individual and Family Counseling--Bellefonte division under contract dated December 11, 1992, effective January 1, 1993.

 20. CPDASC sold the Central Pennsylvania Individual and Family Counseling - Mifflin/Juniata division on or about November 1, 1993.

 21. Effective September 4, 1991, CPDASC hired Rose Stemler to work approximately 20 hours per week. Hired initially as a consultant; she was later given the title of office manager. Ms. Stemler is a female and a high school graduate, with experience in bookkeeping, accounting and computer systems.

 22. The further computerization of office and administrative functions had been planned for some time, but had been delayed pending availability of an outside computer expert to program the new system.

 23. Once this initial work had been done, day-to-day operation of the new system could readily have been handled by either Johnson or Taylor.

 24. Prior to September 4, 1991, CPDASC used computers only to keep track of services rendered, to perform certain billing functions, and to generate payroll.

 25. Beginning September 4, 1991, CPDASC began computerizing all of its bookkeeping, accounting and personnel functions.

 26. On or about October 29, 1991, Zimmerman resigned and Ina Reed was hired to work in the "corporate office."

 27. Both Taylor's and Johnson's, as well as additional duties, were subsequently performed by one full-time (forty hours per week) and one part-time (twenty hours per week) employee.

 28. By January 1, 1993, only one CPDASC employee remained at the "corporate offices," Rose Stemler. Stemler worked approximately 8 hours per week. By November 1, 1993, Stemler's hours had decreased to approximately 2 to 3 hours every two weeks.

 COURT'S FINDINGS OF FACT

 Based upon the evidence submitted at the bench trial on the issue of damages, the court makes the following additional findings of fact:

 30. Johnson's work experience prior to going to CPDASC consisted primarily of office and bookkeeping work for various employers, including computer work performed both at CPDASC and for previous employers. Her work at Penn State, a previous employer, included computerizing her department. Johnson did the accounts receivable work for all CPDASC divisions. In the course of those duties, Johnson had full access to company finances and cash receivables and regularly made bank deposits. She had Clark's full confidence, despite his knowledge of her previous involvement in an incident at Penn State involving her embezzlement of university funds. While employed by the university, Johnson took university funds, later confessed and repaid the monies taken. Clark had full knowledge of this incident when he hired her and nevertheless trusted her with extensive fiscal responsibilities.

 31. CPDASC employees received a 4.4% cost of living raise on July 1, 1991.

 32. Both plaintiffs received excellent work evaluations during their entire period of ...


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