Hale v. Ladd

• Decision Date: 09 March 1992
• Docket Number: No. 91-120,91-120
• Citation: 308 Ark. 567,826 S.W.2d 244
• Parties: Suzanne HALE, Appellant, v. Jimmy LADD, Appellee.
• Court: Arkansas Supreme Court

Page 244

826 S.W.2d 244

308 Ark. 567

Suzanne HALE, Appellant, v. Jimmy LADD, Appellee.

No. 91-120.

Supreme Court of Arkansas.

March 9, 1992.

Richard L. Peel, Russellville, for appellant.

Jeff Mobley, Russellville, for appellee.

HAYS, Justice.

Appellant Suzanne Hale brought this action against appellee Jimmy Ladd for breach of employment contract and for the tort of outrage. Her complaint alleged wrongful discharge and outrage based on sexual harassment while she was employed at Ladd's Furniture and Appliance Store in Dardanelle. The jury returned a verdict for the defendant on the breach of contract claim and for the plaintiff on the tort of outrage claim, awarding punitive damages of $7,500 while denying compensatory damages. Because no compensatory damages were awarded the trial court vacated the award of punitive damages and entered judgment for the defendant.

Suzanne Hale moved for a new trial, contending the jury erred in the assessment of the amount of recovery and that the verdict was against the preponderance of the evidence. Ark.R.Civ.P. 59(a)(5 and 6). On appeal she raises two points of error: one, the trial court should have ordered a new trial and, two, it should have instructed the jury that punitive damages are not recoverable without compensatory damages. Because we find the undisputed evidence to be so clearly counter to the verdict, we think the trial court's refusal to order a new trial was an abuse of discretion and accordingly we reverse and remand.

Appellant Suzanne Hale testified that she was agreeably employed as assistant sales manager at Southern Electric when Jimmy Ladd, a customer of Southern Electric, repeatedly urged her to come to work for him at Ladd's furniture store. After first refusing, she agreed when Ladd offered to match her salary and benefits and intimated that he would like to see her take over the business when he retired.

Hale started working for Ladd in mid-January of 1988. There were no problems for the first three or four weeks, but then by her account she became the object of frequent suggestive remarks and unwanted physical contacts from Jimmy Ladd. She said Mr. Ladd told her she was "sexy," that she "turned him on." He began touching her, putting his hands on her legs, back, and arms. At times he would try to press her hand against some part of his pants. On one occasion she was bending over to pick up something and he grabbed her hips and pressed himself against her very hard. He would try to kiss her and once he put his arms around her, grabbed her buttocks and pressed her against him. When she raised her hands to push him away he placed both his hands on her breasts. One incident involved his saying to her that if she would "just touch or kiss it he would come."

In mid-April, after a visit from Suzanne's husband, Mr. Ladd told her she should find work elsewhere, explaining that he would not be intimidated by her husband. She was given severance pay and told to get out. She testified that it was September before she found other employment, resulting in a loss of earnings of $2,342.63.

Former employees of Ladd Furniture corroborated generally and specifically Suzanne Hale's account of her experiences. Eleanor Lawson testified that she decided to go to work for Ladd on the suggestion that she and her husband could buy the business when Ladd retired. While she worked for him, she described repeated instances of his bumping into her as if by accident, that he would rub her breasts and her buttocks.

Susan Miller testified that she went to work for Ladd on the representation that she would be given an option to buy the store, then she was discharged abruptly and without explanation after she had pointedly declined Ladd's invitation to move in with him. Regina Henderson said Mr. Ladd told her that Suzanne Hale had the sexiest mouth he had ever seen and that he would like to take her to bed. James Ray Weve testified that Ladd told him in reference to Suzanne Hale that he would like to "get in her britches." He testified that he was in the building when Ladd thought he and Mrs. Hale were alone during a lunch break and heard Ladd ask her to "kiss it on the head."

It must be noted that the testimony of these witnesses was categorically denied by Jimmy Ladd with the exception of the testimony of Regina Henderson. Asked on cross-examination about her statement that Ladd had told her he would like to go to bed with Suzanne Hale, he said he did not recall making such a statement. Ladd's explanation for terminating Suzanne Hale was that her husband had threatened him by describing an episode involving a fellow employee of Suzanne's at another job who pursued her, telling Ladd that he had "busted his skull and caved in his ribs."

Notwithstanding the distinct imbalance in the proof supporting the plaintiff's outrage claim, it might be possible to conclude the jury had simply resolved an issue of credibility. But the verdict itself refutes any such inference. The jury expressly found for the plaintiff on the tort of outrage...