American Cast Iron Pipe Co. v. Williams

• Decision Date: 27 December 1991
• Citation: 591 So.2d 854
• Parties: AMERICAN CAST IRON PIPE COMPANY v. Joseph WILLIAMS III. 1900588.
• Court: Alabama Supreme Court

Page 854

591 So.2d 854

AMERICAN CAST IRON PIPE COMPANY v. Joseph WILLIAMS III.

1900588.

Supreme Court of Alabama.

Dec. 27, 1991.

Robert G. Tate, F.A. Flowers III and Harri J. Haikala of Burr & Forman, Birmingham, for appellant.

Patrick K. Nakamura and Claudia H. Pearson of Longshore, Nakamura & Quinn, Birmingham, for appellee.

INGRAM, Justice.

Joseph Williams III sued American Cast Iron Pipe Company ("ACIPCO"), asserting a wrongful discharge claim ¹ and, in addition, a retaliatory discharge claim under the Workmen's Compensation Act, § 25-5-11.1, Ala.Code 1975. For relief, Williams sought reinstatement to his job, back pay and fringe benefits, and punitive damages. In the alternative, Williams sought workmen's compensation benefits for his alleged permanent and total disability.

In his complaint, Williams alleged that while working within the line and scope of his employment he sustained injuries to his hands while operating a jackhammer and performing the other duties of his employment. Williams further alleged that shortly after obtaining medical approval to return to work, but before actually returning to work, his employment with ACIPCO was terminated without just cause.

A jury returned a verdict for Williams and against ACIPCO on both the wrongful discharge claim and the retaliatory discharge claim. The jury awarded Williams $80,000 in compensatory damages and $100,000 in punitive damages. The trial court entered judgment on the jury's verdict and, in addition, reinstated Williams to a position with ACIPCO. ACIPCO appealed.

The first issue raised in this appeal is whether the trial court erred in charging the jury on the tort of bad faith. The second issue is whether the trial court erred in allowing an accountant, who was not offered as an expert witness, to testify as to Williams's damages.

Before reaching the issue whether the trial court improperly instructed the jury on the tort of bad faith, we must first examine Williams's argument that ACIPCO's objections to the trial court's jury instructions were not stated in a timely manner.

To be timely, an objection to the trial court's oral charge, with grounds for the objection, must be made before the jury retires to consider its verdict and must be stated with sufficient clarity or specificity to preserve the error. Rule 51, Ala.R.Civ.P.; McElmurry v. Uniroyal, Inc., 531 So.2d 859 (Ala.1988). The purpose of stating grounds for objections is to give the trial court an adequate opportunity to correct the instructions and to avoid the waste of time and money from reversals that result from oversight, technical omissions, or remedial mistakes. Feazell v. Campbell, 358 So.2d 1017 (Ala.1978).

The record reveals that following the trial court's instructions to the jury, but prior to the jury's retiring to consider its verdict, ACIPCO raised two exceptions to the jury instructions. One of the exceptions was predicated upon the trial court's having instructed the jury on the tort of bad faith. In overruling ACIPCO's exceptions, the trial court specifically noted that it was overruling ACIPCO's exception to the bad faith instruction.

After reviewing the colloquy that transpired between the trial court and counsel for ACIPCO following the trial court's instructing the jury, we find that ACIPCO's exception to the bad faith instruction was made in a timely manner. It is clear from the record that the exception was made prior to the jury's beginning its deliberations and was stated with sufficient clarity to present the trial court with the opportunity to correct its instructions.

In addressing the issue of whether the trial court erred in instructing the jury on the tort of bad faith, we note that it is the duty of the trial court to instruct the jurors fully and correctly on the applicable law of the case and to guide, direct, and assist them toward an intelligent understanding of the legal and factual issues involved in their search for truth. Grayco Resources, Inc. v. Poole, 500 So.2d 1030 (Ala.1986). We have repeatedly held that each party is entitled to have proper instructions given the jury regarding the issues presented in the case. Id.

Furthermore, giving an incorrect or misleading instruction as to any theory of a case is reversible error. Nunn v. Whitworth, 545 So.2d 766 (Ala.1989); Liberty Nat'l Life Ins. Co. v. Smith, 356 So.2d 646 (Ala.1978). Where the record reveals that an erroneous charge was given to the jury, a new trial is required. McDowell v. Key, 557 So.2d 1243 (Ala.1990); Beneficial Management Corp. v. Evans, 421 So.2d 92 (Ala.1982).

As part of its instructions to the jury in this case, the trial court stated:

"Every contract contains a duty implied by law of acting in good faith and dealing fairly with the other party to the contract, this duty requires that neither party interfere with the rights of the other to receive the benefits of that contract. A breach of this implied duty provides the injured party with a tort action for bad faith, notwithstanding that the act complained of also constitutes a breach of contract."

(Emphasis supplied.)

Although we agree that every contract does impose an obligation to act in good faith and to deal fairly (see, e.g., § 7-1-203, Ala.Code 1975, for the obligation imposed in the commercial context), we have consistently refused to extend to the area of general contract law the tort of bad faith that we have recognized in the context of insurance policy cases. Harrell v. Reynolds Metals Co., 495 So.2d 1381 (Ala.1986). So, while the employment contract in this case does contain an implied duty to act in good faith, it does not carry with it the duty imposed by law that we have found in the context of insurance cases. See Kennedy Electric Co. v. Moore-Handley, Inc., 437 So.2d 76 (Ala.1983). Although the obligation to act in "good faith" arises as part of the contract in this case, its breach does not give rise to a bad-faith tort action. Hoffman-La Roche, Inc. v. Campbell, 512 So.2d 725 (Ala.1987). Therefore, we conclude that the trial court incorrectly instructed the jury by giving the bad faith charge.

Williams argues that even if this Court finds that the trial court improperly instructed the jury as to the tort of bad faith, the trial court's judgment is due to be affirmed because, he says, ACIPCO failed to demonstrate in its brief how it was harmed by the erroneous jury charge. However, we reject Williams's argument without reaching the question whether ACIPCO showed that the erroneous jury charge was injurious, because we find the trial court's...