Callantine v. Staff Builders Inc.

• Decision Date: 14 September 2001
• Docket Number: Nos. 01-1201,01-1202,s. 01-1201
• Citation: 271 F.3d 1124
• Parties: (8th Cir. 2001) SHERI CALLANTINE, APPELLEE/CROSS APPELLANT, v. STAFF BUILDERS, INC., A NEW YORK CORPORATION, APPELLANT/CROSS APPELLEE. Submitted:
• Court: U.S. Court of Appeals — Eighth Circuit

Page 1124

271 F.3d 1124 (8th Cir. 2001)

SHERI CALLANTINE, APPELLEE/CROSS APPELLANT, v. STAFF BUILDERS, INC., A NEW YORK CORPORATION, APPELLANT/CROSS APPELLEE.

Nos. 01-1201, 01-1202

UNITED STATES COURT OF APPEALS FOR THE EIGHTH CIRCUIT

Submitted: September 14, 2001

Filed: November 27, 2001

Appeal and Cross Appeal from the United States District Court for the Western District of Missouri. [Copyrighted Material Omitted]

[Copyrighted Material Omitted] Before Wollman, Chief Judge, Richard S. Arnold, and Riley, Circuit Judges.

Riley, Circuit Judge.

Sheri Callantine (Callantine) brought the instant action after her termination by Staff Builders, Inc. (Staff Builders). A jury returned a verdict in favor of Callantine on her state law claims for wrongful termination and for failure to provide a service letter as required by Missouri state law. The jury awarded Callantine $2,807.85 in actual damages and $180,000 in punitive damages on the wrongful termination claim, and $1.00 in nominal damages and $57,850 in punitive damages on the service letter claim. Staff Builders appeals the district court's denial of its motion for judgment as a matter of law or for a new trial. Additionally, Callantine cross-appeals challenging the district court's entry of an order of remittitur, which decreased the punitive damage awards to $50,000 and $25,000, respectively. We reverse the district court's denial of judgment as a matter of law on the wrongful termination claim, and we affirm the district court's denial of judgment as a matter of law on the service letter claim and its remittitur.

Callantine filed this action alleging she was wrongfully terminated in violation of public policy for failure to commit the illegal act of signing a backdated Medicare Form 485. Additionally, Callantine alleged Staff Builders failed to provide her with a service letter as required by Missouri Revised Statute § 290.140. The action was tried to a jury. The jury returned a verdict in favor of Callantine on both counts and awarded punitive damages on each.

Following trial, Staff Builders moved for judgment as a matter of law, a new trial and remittitur. The district court denied the motions for judgment as a matter of law and for a new trial, but granted the motion for remittitur of the punitive damage awards and entered judgment. Callantine objected to the remittitur and moved to alter or amend the judgment under Fed. R. Civ. P. 59(e). The district court summarily denied the motion.

On appeal, Staff Builders contends the district court erred in submitting the wrongful termination claim to the jury. It also challenges the punitive damage awards and amounts on both claims, and asserts error in instructing the jury on the scope and course of agency. Callantine challenges the district court's remittitur of punitive damages and the district court's denial of Callantine's motion to alter or amend the judgment after remittitur.

I. BACKGROUND

Staff Builders, a New York corporation, is wholly owned by Staff Builders, Inc., a Delaware corporation. Staff Builders performs payroll and personnel activities for the franchisees of Staff Builders, Inc. of Delaware, but does not supervise the day-to-day activities of medical personnel. Complete Home Health Care, Inc. entered into a franchise agreement with Staff Builders, Inc. of Delaware. Complete Home Health Care conducted business under the fictitious name of "Staff Builders of Cabool Home Health Care Services" (Cabool office). The Cabool office maintains and supervises a staff of home health care workers.

Callantine is a registered nurse who worked as a field nurse for the Cabool office from October 1996 until March 25, 1997, when she was terminated. Callantine provided skilled nursing services to homebound patients, primarily Medicare and Medicaid patients.

The evidence adduced at trial shows that medical personnel, such as Callantine, are required by Medicare to fill out Form 485 for patients who use Medicare as their primary insurance. A Form 485 includes a doctor's prescription for the treatment of a patient: for example, the doctor's determination that a patient is homebound and requires home health care for a certain length of time. Callantine described the Form 485 as: "It's the doctor's orders." A Form 485 generally spans a two-month certification time period from the start-of-care date, but may be designated for a shorter period of time. Recertification is required to continue home health care after the time period originally prescribed. The doctor who prescribes the home health care and the nurse who provides the home health care are both required to sign the form. The nurse's signature attests to the plan of treatment. Medicare does not pay for the home health care visits without the required signatures.

On February 7, 1997, Celia Wilson, a registered nurse, and Janet Ratteree, a home health aid, who both worked out of the Cabool office, were terminated. That day Ratteree, Nancy Sander, another registered nurse working out of the Cabool office, and Callantine called the Missouri State Department of Health to report alleged improper procedures related to the decrease of service or discharge of patients and other alleged irregularities in the Cabool office. The Health Department took no action at that time.

On February 18, 1997, Callantine and Sander again called the Health Department. A representative told Callantine the Health Department would need proof of wrongdoing before pursuing an investigation. Thereafter, Sander obtained shredded documents from the Cabool office and Callantine assisted her in piecing them together. On February 24, 1997, the State initiated an investigation of the Cabool office. Sander was terminated on March 13, 1997, because the Cabool office management suspected she had called the Health Department.

Although she had been terminated, Sander returned to the Cabool office on March 25, 1997, to complete paperwork. Callantine accompanied her. While Sander completed paperwork, Leanna Duncan, Assistant Director of Nurses, printed a Form 485 containing certain patient information and presented the Form 485 to Callantine asking for her signature. The evidence shows that Callantine stated, "I won't sign that." Duncan asked, "Well, why won't you sign this?" Callantine responded, "Because I don't believe that patient is homebound and I don't want to backdate this document." Duncan said, "You've been making the visits on this patient." Callantine responded, "Yes, I have. I've made those visits that I needed to do to keep my job here." At that point, Gerre Thornhill, the owner of the Cabool office franchise, asked Callantine to leave the office. Callantine at first refused to leave because Sander was still completing paperwork, but later moved to the sidewalk outside the building. Callantine was terminated later that day.

Leanna Duncan testified Callantine was terminated for behavioral problems. Duncan cited a list of fourteen instances, including unprofessional behavior in front of patients and in the office, and failure to sign the Form 485 on the day Callantine was terminated.

The evidence shows Callantine had made visits twice a week to the patient listed on the Form 485, and Callantine had been paid for making those visits. Duncan testified Callantine had been asked to sign a Form 485 for the patient prior to March 25, 1997, but she had not done so.

Callantine testified the certification period for the patient on the form was March 2, 1997, to May 2, 1997. She further testified she had been instructed that a Form 485 must be signed either on or before the first day of the certification period. Duncan testified she had informed Callantine that she (Duncan) had spoken to the patient's doctor and the director of nurses about the patient and all had agreed that the home health care visits should continue.

Callantine also testified that she was asked to sign other Form 485s after the certification period began, to place a date next to her signature which was earlier than the date she was actually signing the form, and also to sign Form 485s without dating them. Additionally, Callantine testified she was instructed to make home health care visits to patients that she personally determined were not homebound as defined by Medicare.

On March 29, 1997, subsequent to her termination, Callantine sent a request for a service letter to Staff Builders' registered agent by certified mail, seeking a letter "[p]ursuant to Statute R.F.MO. 290.140."¹ Missouri law requires an employer to provide an explanation of the reasons an employee was terminated when requested to do so by the employee and when certain statutory requirements are met.

On March 31, 1997, Staff Builders' registered agent received the request letter and forwarded it to "Ed McNicholas, Legal Department, Staff Builders" in New York. Ed McNicholas, a paralegal working for Staff Builders, received the request letter on April 1, 1997. Staff Builders did not respond to the request letter.

During trial, Renee Silver, corporate counsel for Staff Builders, testified she was not familiar with Missouri law or, specifically, the Missouri service letter statute. Further, Silver testified that other than the word "statute" in the sentence she would not have guessed "R.F.MO." stood for anything, particularly not the "Revised Statutes of Missouri," nor would she have known what publication was referenced or where to look.

We will first address the issues related to the wrongful termination claim.

II. DISCUSSION

A. Wrongful Termination

We review de novo the district court's denial of Staff Builders' motion for judgment as a matter of law. See Otting v. J.C. Penney Co., 223 F.3d 704, 708 (8th Cir. 2000). "Judgment as a matter of law is proper only when there is a complete absence of probative facts to support the conclusion reached so that no reasonable juror could have found for the nonmoving party." Foster v. Time Warner...