Builders Transport, Inc. v. Hall, 74111

• Decision Date: 14 July 1987
• Docket Number: No. 74111,74111
• Citation: 360 S.E.2d 60,183 Ga.App. 812
• Parties: , 5 UCC Rep.Serv.2d 279 BUILDERS TRANSPORT, INC. v. HALL.
• Court: Georgia Court of Appeals

Page 60

360 S.E.2d 60

183 Ga.App. 812, 5 UCC Rep.Serv.2d 279

BUILDERS TRANSPORT, INC. v. HALL.

No. 74111.

Court of Appeals of Georgia.

July 14, 1987.

Rehearing Denied July 27, 1987.

Certiorari Denied Sept. 8, 1987.

Griffin B. Bell, Jr., Atlanta, Andrew J. Hill III, Athens, Edward M. Hughes, Savannah, for appellant.

Michael A. Lewanski, John R. Calhoun, Savannah, for appellee.

BANKE, Presiding Judge.

Appellee Hall was employed by the appellant, Builders Transport, Inc., as a salaried truck driver until 1979, when Builders Transport offered him the opportunity to purchase a 1973 Kenworth truck tractor and to begin driving for the company as an independent contractor. The parties entered into two contracts governing the new arrangement--a "Contractors Operating Agreement" and an "Installment Conditional Sales Contract." By its terms, the operating agreement could be terminated by either party for any reason upon 10 days' notice, or it could be terminated immediately in the event of a material breach. While it was in force, it obligated Hall to comply with all safety regulations applicable to the company's drivers. Pursuant to the sales contract, the company was authorized to repossess the tractor immediately in the event of the termination of the operating agreement, whether upon 10 days' notice or upon a material breach. The sales contract additionally authorized Builders Transport to repossess the vehicle in the event it deemed itself "insecure for any reason."

Hall drove for Builders Transport as an owner-operator pursuant to the new arrangement until July of 1980, when he complained of being assigned unprofitable trips and not being provided return loads to his home city. It was Builders Transport's position that, during a meeting with a company vice-president called for the purpose of discussing this complaint, Hall acted in an angry and "irrational" manner. After investigating his complaint, the company concluded that Hall had been treated fairly, but because of his demeanor at the meeting a decision was made to inquire further into his general conduct and attitude.

Less than three weeks later, while Hall was in "the fuel line" refueling his truck, he had a conversation with the company's safety director, wherein he asked why he had not been paid additional compensation under the company's safety bonus program for the prior quarter, as he always had in the past. According to Hall, the safety director told him that, as an independent owner-operator, he was no longer eligible for such bonuses, to which he (Hall) responded that he could not understand why a distinction was made between company drivers and owner-operators since they were all required to abide by the same safety regulations. The safety director's version of this conversation differed considerably from Hall's. It was his position that when Hall was informed of his ineligibility for the bonus, he stated that he no longer intended to comply with the company's safety regulations.

Based on his own conversation with Hall during their July meeting and on the safety director's account of his discussion with Hall, the company's vice-president conferred with counsel and made a decision to terminate Hall's employment. On July 17, 1980, prior to being informed of his termination, Hall made a routine telephone call to the company's dispatcher to inquire if there was a load for him to pick up. The dispatcher instructed him to drive his truck to the company's office in Savannah for a meeting with company officials. Hall did so and, after arriving in Savannah and refueling and parking his truck, was told by the dispatcher that his employment had been terminated. Hall then asked to see the vice-president, who confirmed the termination of his contract and advised him that his tractor had been seized. A letter formally notifying Hall of the termination of the contractor's operating agreement was prepared that same day, i.e., July 17, 1980, and was subsequently delivered to him. It is undisputed that all installments then due under the sales contract had been made as of that date.

Five months later, Builders Transport notified Hall that the sales contract was deemed to be in default. Subsequently, on February 2, 1981, the company sought a writ of possession for the tractor based on Hall's alleged delinquency in making the installment payments. Hall counterclaimed, seeking actual and punitive damages for breach of contract, unlawful conversion, and wrongful repossession. Builders Transport's claim for a writ of possession was disposed of by a consent judgment, leaving the counterclaims to be tried before a jury. The jury awarded Hall $11,454.90 on the breach of contract claim and actual damages in the amount of $830.95 on the tort claim, the latter award apparently reflecting the value of certain tools left in the truck. Additionally, the jury awarded punitive damages in the amount of $100,000. Builders Transport filed this appeal from the denial of its motion for judgment notwithstanding the verdict, or, in the alternative, for a new trial. Held:

1. Builder's Transport contends that the award of damages in the amount of $11,454.90 for breach of contract was contrary to the evidence.

The trial court correctly charged the jury that if they found Builders Transport to be in breach of the sales contract, they would be authorized to award Hall the fair market value of the truck, less the indebtedness still owed under the sales contract. The sole evidence presented by Hall concerning the market value of the vehicle at the time of the alleged breach consisted of his testimony...