Crossman Trans World Airlines

• Decision Date: 08 January 1986
• Docket Number: No. 84-1305,84-1305
• Citation: 777 F.2d 1271
• Parties: Gregory CROSSMAN, Plaintiff-Appellee, v. TRANS WORLD AIRLINES, Defendant-Appellant.
• Court: U.S. Court of Appeals — Seventh Circuit

Page 1271

777 F.2d 1271

Gregory CROSSMAN, Plaintiff-Appellee, v. TRANS WORLD AIRLINES, Defendant-Appellant.

No. 84-1305.

United States Court of Appeals Seventh Circuit.

Argued Nov. 16, 1984.

Decided Nov. 27, 1985.

Rehearing Denied Jan. 8, 1986.

Franklin A. Nachman, Conklin & Adler, Ltd., Chicago, Ill., for defendant-appellant.

William J. Harte, Chicago, Ill., for plaintiff-appellee.

Before BAUER and CUDAHY, Circuit Judges, and DOYLE, Senior District Judge. ^*

BAUER, Circuit Judge.

Plaintiff prevailed in this diversity action against defendant on a claim of fraud and was awarded $75,000 in damages by a jury. The trial judge denied defendant's motions for directed verdict and judgment n.o.v., and defendant now appeals those rulings. We reverse.

I.

This case arose out of plaintiff's employment and subsequent arrest in Saudi Arabia. Because we review the trial court's denial of defendant's motions for a directed verdict and for judgment n.o.v., we view the evidence in the light most favorable to the plaintiff. Moran v. Raymond Corp., 484 F.2d 1008, 1014 (7th Cir.1973) (applying Illinois law).

Since the 1950's, defendant Trans World Airlines (TWA) has performed a variety of contractual services for Saudi Arabian Airlines (Saudia), including recruiting and training employees. In 1976 TWA undertook recruiting Americans to work for Saudia. TWA placed an advertisement in a Miami newspaper announcing job openings in Saudi Arabia with Saudia, which is owned by the government of Saudi Arabia. Plaintiff Gregory Crossman responded to the advertisement in April 1976. As instructed by the advertisement, Crossman appeared at a designated location to apply for a position as an avionics technician and was interviewed separately by two TWA employees, Crowder and Metros. During these brief interviews potential problems an employee might have with the Saudi Arabian criminal justice system were not discussed.

After his interviews, Crossman was tentatively selected for employment. He then attended an orientation session for potential employees. Another TWA recruiter, John Massie, led the session. Massie described living conditions in Saudi Arabia and financial arrangements, and fielded questions from the applicants. He explained that initially they would be TWA employees and receive TWA salary and benefits, but that shortly thereafter they would become contract employees of Saudia. Although the details of the future Saudia contract were not yet known, the contract was expected to be more lucrative than the TWA employment contract. No one asked Massie about the possibility of a TWA employee or Saudia contractor being arrested in Saudi Arabia, but applicants other than Crossman asked about possible troubles communicating and dealing with the Saudi Arabian government, particularly after they became employees of Saudia. Massie stated that "TWA would always be there should [the employees] ever need any assistance, that TWA would not abandon their American partners or people."

Following the orientation session, Crossman signed an agreement accepting employment with TWA as a senior avionics mechanic. The agreement indicated that Crossman would become a Saudia employee at some future time. Crossman later received a packet of materials that included a "foreign laws agreement." The agreement, which Crossman read and signed, stated:

In consideration of employment, the Company requires employees to familiarize themselves with all governmental and company rules and regulations pertaining to their duties, and to faithfully abide by them.

The Company will not tolerate being subjected to annoyance, embarrassment or expense on account of conduct of an employee while on duty or off duty.

Employees who violate either Company or country laws and regulations with respect to currency controls and customs are subject to immediate dismissal, and further, the Company will take no responsibility with respect to payment of fines or penalties which may be imposed upon individuals found guilty of violating such customs regulations or currency restrictions. It will be entirely the individual's responsibility to supply funds for fines or penalties and to provide his own legal counsel, if any is required.

Crossman arrived in Saudi Arabia in June 1976. While he was a TWA employee, TWA assisted him with "daily problems." TWA also obtained a visa for Crossman and supplied him with airplane tickets when he had to make an emergency trip to the United States. In October 1976 the anticipated employment change occurred and Crossman signed a contract making him an employee of Saudia.

Sometime in September 1977, Crossman's supervisor at Saudia, Gabriel Chiroux, went to Crossman's house to look for a missing volt meter belonging to Saudia. Chiroux spotted the device in Crossman's house and questioned him about it. Crossman stated that he had borrowed it from the shop at work to use in fixing his automobile. Although Crossman did not have a certificate of title to the automobile, he stated that he had purchased the automobile from another American worker who was preparing to leave Saudi Arabia. On September 4th, Chiroux returned to Crossman's house with five or six other Saudia employees, some of whom searched Crossman's belongings and confiscated some of his tools and other work-related objects.

On September 5, 1977 Crossman anticipated that he might be arrested. Believing that TWA offices were closed for the Labor Day holiday, Crossman called his ex-wife and then went to the American Embassy seeking assistance. The embassy was closed and Crossman was able to speak only to a Marine guard, who said he would pass along the information Crossman gave him about his situation. Later, Crossman went to his workplace, where he encountered a Saudia security employee. He was questioned by Saudia personnel and then taken to the police station and arrested. An hour later he was taken to the Royal Saudi Air Force jail, where he remained for six months. Crossman was then transferred to Jeddah prison, where he spent the final five months of his incarceration.

While Crossman was in jail, three Americans were arrested and jailed for distilling alcohol. Two of the three were TWA employees and the third, like Crossman, was a Saudia contract employee. The four Americans were jailed together, either in the same cell or in close proximity to one another. Various TWA employees came to visit the other American prisoners, and Crossman tried to deliver messages to TWA through two of them, Gardner and Smith. Crossman twice asked Smith if TWA was following his case and whether he knew the status of his case. The first time Smith ignored Crossman and did not respond to his query. At a later date, Smith relayed a message to Crossman from an embassy official about the status of his case. Crossman also sent notes to TWA through two of his friends.

When TWA employees in Saudi Arabia were arrested it was the practice of the TWA personnel office to monitor the flow of legal documents from one office to another in the Saudi Arabian criminal justice system. Saudi Arabian law does not provide a right to pre-trial bail or of habeas corpus. Thus, TWA's policy simply sought to prevent undue delay in the disposition of a case because of slow processing of the paperwork. TWA did not follow Crossman's case to the extent it monitored the cases of the other jailed Americans. United States embassy personnel, however, visited Crossman regularly and reported on the progress of his case.

During his confinement, Crossman appeared in court twice. An interpreter relayed questions to Crossman, who never admitted guilt as to any of the charges. After eleven months, Crossman was released from prison without having been adjudicated guilty. The court document ordering his release stated that although he was "chargeable" with the offenses of stealing the car and various work-related items, he had already served sufficient time for those offenses and should not be detained any longer. The three Americans jailed for distilling alcohol had admitted their guilt and had been released after five months of incarceration.

After his return to the United States, Crossman filed a five count complaint against TWA in the United States District Court for the Northern District of Illinois under diversity jurisdiction. The complaint alleged breach of contract, fraud, and intentional infliction of emotional distress. The District Court dismissed one count for breach of contract and the count for intentional infliction of emotional distress before trial. The case was then tried before a jury on one count of breach of contract and two counts of fraudulent misrepresentation.

At the close of Crossman's case, the trial judge directed a verdict in favor of TWA on the breach of contract count. The court submitted both fraud counts to the jury. Count III alleged that TWA fraudulently induced Crossman to sign his employment contract with Saudia. Count IV alleged that TWA fraudulently induced Crossman to sign the agreement with TWA to work in Saudi Arabia by falsely promising that TWA would represent Crossman in his dealings with the Saudi Arabian government, both while he was employed by TWA and after he became a Saudia employee. The jury found in favor of TWA on Count III and in favor of Crossman on Count IV, awarding Crossman $75,000 in damages. TWA moved for judgment n.o.v. as to Count IV and appeals the district court's denial of that motion. Crossman does not appeal any...