Stamathis v. Flying J, Inc.
| Citation | 389 F.3d 429 |
| Decision Date | 10 November 2004 |
| Docket Number | No. 02-2297.,02-2297. |
| Parties | Michael Anthony STAMATHIS, Plaintiff-Appellee, v. FLYING J, INCORPORATED, a Delaware Corporation; David L. Hansen, Defendants-Appellants. |
| Court | United States Courts of Appeals. United States Court of Appeals (4th Circuit) |
Miguel Angel Estrada, Gibson, Dunn & Crutcher, L.L.P., Washington, DC, for Appellants. Monica Taylor Monday, Gentry, Locke, Rakes & Moore, Roanoke, Virginia, for Appellee.
ON BRIEF:
F. Joseph Warin, Andrew S. Tulumello, Harry M. Gruber, Gibson, Dunn & Crutcher, L.L.P., Washington, DC; Kenneth J. Ries, Brian J. Brydges, Johnson, Ayers & Matthews, Roanoke, Virginia, for Appellants. Paul G. Klockenbrink, Gregory R. Hunt, Gentry, Locke, Rakes & Moore, Roanoke, Virginia, for Appellee.
Before WIDENER, MICHAEL, and GREGORY, Circuit Judges.
Affirmed by published opinion. Judge Widener wrote the opinion, in which Judge Michael and Judge Gregory concurred.
Plaintiff Michael Stamathis brought this action against defendants Flying J, Inc. and David Hansen, an employee of Flying J, Inc., alleging defamation, malicious prosecution, tortious interference with employment, and a claim for punitive damages. A jury found in favor of the plaintiff on the defamation and malicious prosecution counts and awarded him compensatory damages in the amount of $250,000, and punitive damages in the amount of $450,000 against Flying J, Inc. and $5,000 against David Hansen. The district court subsequently reduced the punitive damages awarded against David Hansen to $0 and against Flying J, Inc. to $350,000, pursuant to Va.Code Ann. § 8.01-38.1 (1996).1 The defendants appealed, asserting that they are entitled to judgment as a matter of law under Virginia's merchant's immunity statute, Va.Code Ann. § 18.2-105 (1996), and that both the punitive and compensatory damages awards should be struck down as excessive.2 For the reasons set forth below, we affirm the judgment of the district court.
At the time of this incident, Stamathis was a long-haul truck driver and had been employed by J-Mar Trucking, Inc. (J-Mar) for three years. J-Mar paid Stamathis for driving a mileage rate of 30 cents per mile, and J-Mar furnished Stamathis' gas by providing him with a "T-Chek" fuel card, which operates in a similar manner to a credit card. J-Mar requires its employees to stop at designated fuel stops along the road, many of which are operated by the defendant, Flying J, Inc. Stamathis made frequent stops at various Flying J gas stations throughout the country and enrolled in Flying J's Frequent Fueler Program. He was issued a card with his name on it and as a member he was entitled to certain benefits, such as free showers and other catalog gifts.
On the night of December 18, 2000, Stamathis was en route from Ohio to Atlanta, Georgia on I-81. At around 8:00 pm, Stamathis pulled off the interstate to refuel and rest at the Flying J Travel Plaza near Wytheville, Virginia. The truck stop was particularly busy that evening and Stamathis had to wait approximately fifteen minutes before he was able to pull his tractor trailer up to the fuel pump. Once at the pump, Stamathis inserted his T-Chek fuel card into the card reader at the fuel pump. In order to monitor their drivers actions, J-Mar requires drivers to input several pieces of information when using the fuel card, i.e. driver's number, trip number, and odometer reading. This information must be entered before the fuel can be purchased. Stamathis inserted his card, entered his tractor number, his trip number, his mileage, and his frequent fueler number. The card reader indicated that he would be ready to fuel, however, when he attempted to pump the fuel it would not work. Stamathis then picked up the courtesy phone at the fuel pump and called the Flying J fuel desk. Stamathis explained the problem to Kristy Bowman, the Flying J cashier, and, at Bowman's request, Stamathis provided her with his company name and tractor number. When Bowman asked Stamathis for his mileage, however, Stamathis was unable to remember it and told her that he would have to go get his mileage notebook from inside his truck cab. Stamathis testified that Bowman told him not to bother, that he could just bring in his mileage when he entered the store. The pump then began operating and Stamathis proceeded to pump his fuel.3
While his tanks were filling, Stamathis entered the store with his mileage notebook. Stamathis testified that he approached Kristy Bowman to give her the mileage, but that she was busy with another customer and told him to come back with his mileage when he was finished fueling. Stamathis then turned to another clerk and asked him to take the mileage, but the other clerk also told Stamathis to bring the mileage into the store later. Following this exchange, Stamathis went back out to his truck, finished fueling, added fuel additive to his tanks, cleaned his windows, and then moved his truck forward so that the truck behind him could begin refueling. Stamathis returned to the store, and after washing his hands, he approached the fuel desk again. Defendant David Hansen was the desk manager and was standing behind Bowman when Stamathis approached the desk the second time. Stamathis handed Bowman his T-Chek card and his Frequent Fueler card, but had forgotten his mileage notebook in his truck cab. After running the cards, Miss Bowman told Stamathis that the transaction would not go through because she still needed the mileage. Stamathis then exited the store to get his mileage from inside the truck.
Once Stamathis reached his truck, he heard over his CB radio that other drivers were complaining that his truck was holding up those waiting to pump fuel. In response, Stamathis got into his truck and tried to find a place to park. The Flying J parking lot was full, and many other truck drivers were circling the lot trying to find parking. Thus, Stamathis pulled onto the service road, passed the entrance ramps to I-81, and pulled his truck into the nearby Citgo truck stop to park.
Hansen and Miss Bowman observed this action from the store and saw Stamathis drive his truck out of the Flying J parking lot and to the Citgo parking lot, bypassing the ramps to I-81. At that point, Hansen told Miss Bowman to call the police while Hansen called his boss, Ronald Hicks. Mr. Hicks told Hansen to see if Stamathis would pay for his fuel, but if not, then to have him arrested. Hansen then called J-Mar, identified Stamathis by name and truck number and said that Stamathis had driven off the lot without paying for his fuel. The dispatcher told Hansen to give her a minute and that she would take care of it. At that point, however, per Hansen's instructions, Miss Bowman had already called the police.
Meanwhile, Stamathis had parked his truck at the Citgo truck stop and entered the Citgo station to use the bathroom and buy a carton of Pepsi. When Stamathis began to walk back to his truck, Deputy Sheriff Jeffrey Hall stopped Stamathis and told him that Flying J had reported that he had stolen fuel. Stamathis was trying to explain to the deputy what happened when Hansen approached the two men with "the biggest grin on his face." Stamathis said to Hansen, This angered Hansen. Hansen stated that Stamathis started complaining about how poorly he had been treated by the Flying J employees, that Stamathis would not discuss paying for the fuel, and at that point Hansen said that he did not want to argue with Stamathis anymore and told the deputy to arrest him. The deputy and Hansen then discussed the situation privately, at which point Hansen was informed that Stamathis would not be arrested unless Hansen instructed and that Hansen would have to travel to the Wytheville Sheriff's Office, several miles away, to file a complaint. Hansen agreed.
Deputy Hall took Stamathis into custody at 9:00 pm, and Stamathis was placed in the patrol car and transported to the Sheriff's Office. Hansen arrived and swore out a criminal complaint against Stamathis, and at 9:34 pm, Stamathis was booked for petit larceny in violation of Va.Code Ann. § 18.2-96. Stamathis appeared before a magistrate judge, posted a $1,000 bond, and was released on his own recognizance at 9:44 pm. Following his release, Stamathis returned to the Flying J in a taxicab, and on the advice of a J-Mar dispatcher, went into the Flying J to ensure that his fuel was paid for. He arrived at the Flying J at approximately 11:00 pm to ensure that the transaction had been completed. Afraid that Hansen would have him arrested again, Stamathis tried to have a manager from the adjacent restaurant accompany him, but was informed that the restaurant and the fuel desk were separate. Hansen was behind the desk when Stamathis arrived, and Stamathis testified that Hansen looked as if "he was getting ready to jump [over the counter]." Stamathis gave his T-Chek and Frequent Fueler cards to Bowman, who carried the cards to Hansen, who then proceeded to imprint the T-Chek card and complete the transaction. During this exchange, no one asked Stamathis for his mileage. Documentation from T-Chek, the fuel card company, indicates that Stamathis' fuel transaction was processed at 9:16 pm, Central Standard Time. On March 21, 2001, Stamathis appeared in Wythe County General District Court for his criminal trial on the larceny charge, but the prosecutor moved that the case be nolle prosed, and the charges against Stamathis were so dismissed. Stamathis was unable to work for J-Mar while the charges were pending because he was concerned that he would be out of the area and unavailable to appear in court on his trial date. Stamathis no longer works for J-Mar.4
On October 23, 2001, Stamathis filed this complaint...
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