Blue Circle Cement Inc. v. Phillips, 1060564.

• Decision Date: 30 November 2007
• Docket Number: 1060564.
• Citation: 989 So.2d 1025
• Parties: BLUE CIRCLE CEMENT INC. and Lafarge Building Materials Inc. v. Sidney Wayne PHILLIPS.
• Court: Alabama Supreme Court

989 So.2d 1025

BLUE CIRCLE CEMENT INC. and Lafarge Building Materials Inc. v. Sidney Wayne PHILLIPS.

1060564.

Supreme Court of Alabama.

November 30, 2007.

Rehearing Denied February 22, 2008.

Robert A. Huffaker and T. Kent Garrett of Rushton, Stakely, Johnston & Garrett, P.A., Montgomery, for appellants.

Lawrence T. King and Lindsey O. Hill of King & Horsley, Birmingham; and Darrell L. Scarlett of Cope, Hudson, Scarlett, Reed & McCreary, Murfreesboro, Tennessee, for appellee.

STUART, Justice.

Sidney Wayne Phillips sued Blue Circle Cement Inc. and Lafarge Building Materials Inc. (hereinafter collectively referred to as "Blue Circle") in the Chambers Circuit Court alleging that his employment had been terminated in retaliation for filing a claim for workers' compensation benefits.¹ After a trial, the jury returned a verdict in favor of Phillips, awarding $200,000 in compensatory damages and $2,000,000 in punitive damages. In postjudgment proceedings, the trial court reduced the punitive-damages award to $600,000 and entered an $800,000 judgment in favor of Phillips. We reverse and remand.

I.

At all times relevant to this action, Blue Circle operated various cement plants in southeast Alabama and southwest Georgia, including Auburn, Lanett, Phenix City, and Eufaula, Alabama, as well as LaGrange, Georgia. In April 2000, Blue Circle hired Phillips, a resident of Valley, Alabama, to work as a truck driver based out of the Lanett plant. Phillips was responsible for loading his truck with cement each day and then delivering the load to job sites in Alabama and Georgia. At some time after he was hired, Phillips's assignment was changed from the Lanett plant to the LaGrange plant, although he apparently continued to sometimes be dispatched from the Lanett plant and to make deliveries in both Alabama and Georgia.

On June 20, 2001, Phillips loaded his truck at the Lanett plant and was dispatched to a job site in Georgia. While Phillips was driving his truck north on Interstate 85 in Georgia, a tire failed and the truck overturned, rolling into the median. Phillips was transported from the accident site by helicopter to Columbus Regional Medical Center in Columbus, Georgia, where he was hospitalized overnight. The next day, he was released from the hospital with a diagnosis of a back strain.

Phillips was subsequently treated for back pain by Dr. J.G. Stauffer, an orthopedist with the Hughston Clinic. He also received physical therapy. On June 25, 2001, Dr. Stauffer cleared Phillips for light-duty work, but not for driving. After Phillips complained of sleeplessness and anxiety because of the accident, he also received counseling from Dr. Steve Brown, a counselor who visited Phillips's home on June 29, 2001, and concluded that he was suffering from post-traumatic stress disorder ("PTSD"). All of these services were paid for by Blue Circle.

On Monday, July 23, 2001, Dr. Stauffer cleared Phillips to return to work without any restrictions. Dr. Stauffer noted in his report that "[t]he patient states that he is feeling better" and "[h]e wants to go back to full duty." On July 24-26, Phillips reported to work and rode with another driver so that he could, in his words, "try to work out the fear of driving by myself." Phillips testified that during these rides he became anxious and had flashbacks of the accident; however, after returning to the plant on the afternoon of July 26 he nevertheless agreed to try driving by himself the next day "to keep [his supervisors] from pushing the issue and making a big deal out of it."

On Friday, July 27, Phillips reported to work at the LaGrange plant and was dispatched to pick up a load of cement at the Lanett plant and to deliver it to Beulah Elementary School in Valley. Phillips completed the 100-mile round trip, during which he drove by the location of his accident, without incident; however, he testified that the trip "bothered" and "upset" him. Immediately upon returning to the LaGrange plant, Phillips approached Darrell Matthews, the dispatcher, and told him that he felt that he was unable to drive the truck safely. Matthews then telephoned their supervisor, Keith Dukes, who was at the Auburn plant and who traveled to LaGrange to meet with Phillips that same day. When Dukes arrived, Phillips testified that he told him the same thing he had told Matthews: "I said, `Keith, I feel like I'm unable to drive a truck at this time, I feel like I need more time to get over my fear of driving and I need more counseling ....'" At Dukes's request, Phillips also handwrote a statement to that same effect, which read:

"I[,] S.W. Phillips[,] feel like that I am not ready to drive at this time and there is no doubt that I need some counseling to help me get over the accident that happened on 6-20-01. Every time I get in the truck I keep seeing the accident."

Dukes then told Phillips to take the rest of the day off and that he would contact him the following week. Dukes then wrote a memorandum memorializing the conversation; that memorandum reads as follows:

"Sidney says he is uncomfortable driving a truck, keeps seeing wreck over when driving and basically scared to drive the truck. Sidney says he can't tell when he would be able to drive again. He would need counseling to get over accident.

"I told Sidney I was going to give him the rest of the day off. Harold Kee² would be back Monday. I would talk to him and Pat Kerce³ to find out what jobs were available."

The memorandum was signed by Dukes, Matthews, and another Blue Circle employee who witnessed the meeting, and Phillips agreed at trial that the memorandum accurately represented their conversation.

Subsequently, various Blue Circle officials had conversations regarding Phillips's situation. Those officials included Dukes; Pat Kerce, a human-resources manager; Harold Kee, general manager for the western Georgia area; John Richardson, vice president of human resources; and John Swierenga, a safety director with responsibility over workers' compensation claims. A decision was ultimately made to give Phillips the choice of either returning to driving a truck or having his employment terminated, and Dukes was instructed to give Phillips this ultimatum when he returned to work.

On July 31, Dukes telephoned Phillips and asked Phillips to meet him at the Lanett plant. At that meeting, Dukes gave Phillips the ultimatum of either driving a truck or having his employment terminated, and, after Phillips again indicated that he was unwilling to resume driving a truck at that time, Dukes informed Phillips that his employment was being terminated.

On January 28, 2002, Phillips sued Blue Circle, alleging that, in terminating his employment, Blue Circle had violated § 25-5-11.1, Ala.Code 1975, which provides:

"No employee shall be terminated by an employer solely because the employee has instituted or maintained any action against the employer to recover workers' compensation benefits under this chapter ...."

The case was tried before a jury in September 2006. Blue Circle moved for a judgment as a matter of law at the close of Phillips's evidence and again at the close of all the evidence; the trial court denied those motions. The jury ultimately returned a verdict in favor of Phillips, awarding him $200,000 in compensatory damages and $2,000,000 in punitive damages.

Blue Circle filed various postjudgment motions: a motion for a judgment as a matter of law; a motion to alter, amend, or vacate the judgment; a motion for a new trial; a motion for remittitur; and a motion to reduce the judgment pursuant to § 6-11-21(a), Ala.Code 1975, which provides that in such cases "no award of punitive damages shall exceed three times the compensatory damages of the party claiming punitive damages or five hundred thousand dollars ($500,000), whichever is greater." The trial court subsequently reduced the punitive-damages award to $600,000 in compliance with § 6-11-21; however, it denied Blue Circle's postjudgment motions in all other respects and entered a judgment against Blue Circle and in favor of Phillips in the amount of $800,000. Phillips then moved the trial court to vacate its order reducing the punitive-damages award, on the ground that § 6-11-21 was unconstitutional; however, the trial court denied his motion. Blue Circle appeals.

II.

Blue Circle makes five arguments on appeal, two concerning the verdict and three relating to the damages award. First, Blue Circle argues that Phillips has not stated a viable claim of retaliatory discharge because, it argues, § 25-5-11.1 is applicable only if "the employee has instituted or maintained any action against the employer to recover workers' compensation benefits under this chapter," and, Blue Circle claims, Phillips never stated a claim for benefits under Alabama law; rather, any claim for workers' compensation benefits was processed and paid under Georgia law. Second, Blue Circle argues, a discharged employee may recover under § 25-5-11.1 only if his employment was terminated solely because he had made a claim for worker's compensation benefits and, Blue Circle argues, Phillips failed to present substantial evidence of that fact. As to the damages claims, Blue Circle first argues that the compensatory-damages award is excessive and should be remitted and that there is no basis to support a punitive-damages award. In the event this Court finds there was a basis for an award of punitive damages, Blue Circle then argues that those damages should be remitted. Because we agree that Blue Circle was entitled to a judgment as a matter of law on its argument that Phillips failed to present substantial evidence indicating that his employment was terminated solely because he had made a claim for worker's compensation benefits, we consider only that argument and pretermit discussion of the remaining issues raised by Blue Circle.

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