Personal Liability • Unjust Enrichment • Promissory Estoppel

Gutteridge v. J3 Energy Group, Inc. PICS Case No. 17-0869 (Pa. Super. May 17, 2107) Lazarus, J. (33 pages).

Trial court correctly awarded judgment in favor of appellee in his breach of contract, tortious interference with contractual rights, and promissory estoppel action after his business deal with appellant fell apart because trial court properly held appellant personally liable for the judgment entered against his corporation. Affirmed.

Appellee formed a corporation which sold electronic motor controls and energy saving lighting products and conducted its business through sales agents. The sales agents would buy products from appellee's corporation at discounted prices and sell them to their own customers at higher prices. Appellant's corporation provided energy procurement and demand response services to commercial and industrial clients. Appellee and appellant agreed that appellee's sales agents would provide appellant's services to customers and they agreed to divide the revenue. Appellant became dissatisfied with appellee's efforts to develop and train the sales agents and made a new proposal for referral fees and compensation but the parties never reached a written agreement. Appellant also paid the sales agents directly and had them sign noncompete agreements which lost customers for appellee. Appellee sued appellant for breach of contract, tortious interference with contractual rights, promissory estoppel and other claims. A nonjury trial resulted in a verdict in favor of appellee for $343,800.