Western v. Buffalo Min. Co.
| Decision Date | 23 January 1979 |
| Docket Number | No. 14205,14205 |
| Citation | 162 W.Va. 543,251 S.E.2d 501 |
| Court | West Virginia Supreme Court |
| Parties | Frank WESTERN, Jr., et al. v. BUFFALO MINING CO. and Lorado Super Market, Inc. |
Syllabus by the Court
A suit by employees for recovery of money allegedly obtained under a wage assignment that violates W.Va.Code, 21-5-3, is one based on contract and the five-year statute of limitations provided for in W.Va.Code, 55-2-6, is applicable.
Daniel F. Hedges, Charleston, for appellants.
Zane Grey Staker, Paul E. Pinson, Huntington, for Lorado Super Market.
Campbell, Woods, Bagley, Emerson, McNeer & Herndon, James R. Bailes and Robert K. Emerson, Huntington, Valentine, Wilson & Partain, John C. Valentine, Logan, for Buffalo Mining Co.
Plaintiffs, Frank Western, Jr., and Johnie T. Sinett, appeal the dismissal of their suit against Buffalo Mining Company and Lorado Super Market, Inc. The trial court had sustained the defendants' plea of the statute of limitations, holding that the suit was a personal action and therefore barred by the two-year statute of limitations, W.Va.Code, 55-2-12. We disagree and reverse.
Plaintiffs were employed by Buffalo Mining Company and had executed a wage assignment addressed to their employer which stated: "This is your authorization to deduct from my wages each pay day the amount turned in against me by the Lorado Super Market, Inc. and/or the Lorado Service Station."
The complaint alleges that based on this assignment, the defendants violated W.Va.Code, 21-5-3, 1 which limits the amount that can be deducted by a wage assignment to 25 percent of a person's wages. The plaintiffs sought to recover from the defendants the amounts withheld.
An earlier suit was filed in the Federal court on the theory that the wage assignment violated the Consumer Credit Protection Act, 15 U.S.C. § 1671, Et seq., which prohibits garnishment in excess of 25 percent of disposable income. This suit was unsuccessful, as the Court of Appeals refused to construe the wage assignment as a garnishment. Western v. Hodgson, 494 F.2d 379 (4th Cir. 1974).
In Snodgrass v. Sisson's Mobile Home Sales, Inc., W.Va., 244 S.E.2d 321 (1978), we discussed at some length the background of W.Va.Code, 55-2-12, and its interrelationship with W.Va.Code, 55-7-8a, to demonstrate that these sections deal with tort actions, a conventional point that can be found in earlier cases. Family Savings & Loan, Inc. v. Ciccarello, W.Va., 207 S.E.2d 157 (1974); Kisner v. Fiori, 151 W.Va. 850, 157 S.E.2d 238 (1967); Roderick v. Hough, 146 W.Va. 741, 124 S.E.2d 703 (1961).
Here, a fair reading of plaintiffs' complaint demonstrates they are not proceeding on a tort theory. The basis of their cause of action is that the wage assignment is invalid under W.Va.Code, 21-5-3. Consequently, they claim their employer has withheld from them wages which should not have been withheld.
Clearly, in this aspect of the case, their claim rests on the implied employment contract. Sansom v. Sansom, 148 W.Va. 603, 137 S.E.2d 1 (1964); Golden ex rel. Ensminger v. Salkeld Coal Co., 101 W.Va. 341, 132 S.E. 751 (1926); Robinette v. Hubbard Coal Mining Co., 88 W.Va. 514, 107 S.E. 285 (1921); Jackson v. Hough, 38 W.Va. 236, 18 S.E. 575 (1893). The contract statute of limitations of five years for an express or implied contract is applicable. W.Va.Code, 55-2-6; Sansom v. Sansom, supra ; 53 C.J.S. Limitations of Actions § 47.
In respect to the defendant, Lorado Super Market, Inc., plaintiffs' suit centers on the written assignment under which it is claimed that the defendant obtained more than the statute permits on a wage assignment. Both Atkins v. Grey Eagle Coal Co., 76 W.Va. 27, 84 S.E. 906 (1915), and the later case of Holliday v. Elkhorn-Piney Coal Mining Co., 102 W.Va. 147, 134 S.E. 736 (1926), dealt with earlier versions of the statute, which had provisions requiring employers who paid wages in scrip or tokens to redeem the same in lawful money. In each case, a merchant who had been paid by an employee with such scrip sought to collect lawful money for the same as an assignee. While there was no statute of limitations question raised, both cases implicitly recognized that the plaintiff was proceeding as an assignee on a matter arising out of the employment contract.
Here, the plaintiffs are seeking to recover from Lorado Super Market, Inc., an amount obtained on the wage assignment in excess of the 25 percent of their wages as allowed. Their claim obviously is bottomed on the written wage assignment. An assignment does not differ in its essential elements from any other contract. Conservative Life Insurance Co. v. National Exchange Bank of Wheeling, 118 W.Va. 44, 188 S.E. 755 (1936).
That the assignment was illegal under the statute does not preclude the plaintiffs from recovering on it, since they are a part of the class which the statute is designed to protect. 17 Am.Jur.2d Contracts § 228; 6A Corbin on Contracts § 1540 (1962). This point is discussed at some length in Enlow & Son v. Higgerson, 201 Va. 780, 113 S.E.2d 855 (1960):
The written assignment is an express contract upon which the wage assignment statute settled certain conditions, but this does not alter the fact that plaintiffs were suing on a contractual theory to recover the excess wages unlawfully collected.
The point that bears emphasizing is that the written assignment is an express contract and the plaintiffs were entitled to a five-year statute of limitations upon their claim that Lorado had violated the statutory limit. We do not assess the merits of the claim nor the amount of recovery. The trial court did not pass on anything but the statute of limitations and, for the reasons stated, it erred in not applying the five-year limitation as contained in W.Va.Code, 55-2-6.
The judgment in this case is therefore reversed and the case remanded.
Reversed and remanded.
I respectfully dissent from the majority opinion on two grounds: first, this is obviously a tort action and not a contract action; and, second, the plaintiffs did not plead or raise a contract cause of action below and, therefore, the issue is foreclosed in this Court.
The terms used throughout the complaint denote tort and not contract violations. The complaint alleges that Buffalo "knew or should have known" that the wage assignments were unlawful and "wrongfully withheld" amounts owing to plaintiffs. The complaint is totally devoid of any language sounding in contract. Nowhere is the term "contract" used. Nowhere is there a reference to any "promise," "agreement," or "understanding." The closest the...
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...W.Va.Code, 1931, § 55-2-11. This section has been construed to apply to implied employment contracts. See Western v. Buffalo Mining Co., W.Va., 251 S.E.2d 501, 503 (1979). Thus, the applicable statute of limitations is five years. Since Plaintiff filed this action on April 6, 1978, she is e......
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