Stanley v. Kelley

Decision Date29 June 1981
Docket NumberNo. 2-680A185,2-680A185
PartiesBuddy STANLEY, Appellant (Plaintiff Below), v. William J. KELLEY, Appellee (Defendant Below).
CourtIndiana Appellate Court

Raymond F. Fairchild, Payne, Weiland, Wright, & Fairchild, Indianapolis, for appellant.

Clark & Clark, Thomas Michael Quinn, Jr., Alex M. Clark, Indianapolis, for appellee.

YOUNG, Presiding Judge.

Plaintiff Buddy Stanley appeals the trial court's grant of defendant William Kelley's Motion to Correct Errors and Motion for Judgment on the Evidence. In Stanley's suit against Kelley alleging slander and intentional interference with a contractual relationship, the jury returned a verdict upon which judgment was entered for Stanley awarding him $124,000.00 in actual damages and $6,000.00 in punitive damages. The trial court granted Kelley's Motion to Correct Errors, ruling that ".... the verdict of the jury is clearly erroneous and not supported by the evidence ...." and ordered the cause retried. In Stanley v. Kelley, (1981) Ind.App., 417 N.E.2d 1145, while retaining jurisdiction of the appeal, we remanded the case to the trial court for compliance with Ind. Rules of Procedure, Trial Rule 59(I)(7) 1 with the following directions:

If the trial court has in fact determined the verdict is clearly erroneous, it should either enter judgment for Kelley or show why a new trial is necessary and specify the issues which will be retried. If, instead, the trial court has ordered a new trial because finding the verdict to be against the weight of the evidence, it should make specific findings of fact upon each material issue and relate the supporting and opposing evidence to each issue upon which trial is granted.

417 N.E.2d at 1147.

The trial court has, in compliance with our order, clarified its ruling and order granting new trial. The trial court determined that the general verdict of the jury for Plaintiff Stanley was clearly erroneous insofar as it was based upon the theory of intentional interference with a contractual relationship because there was no evidence that Stanley had a valid and enforceable contract of employment which could not have been terminated at any time by either party. Insofar as the verdict was based upon the theory of slander, the trial court determined that the verdict was against the weight of the evidence on the issues of falsity, special damages (including proximate cause) and the related issue of punitive damages. Because the jury's verdict may have rested upon either of the two theories of liability, the trial court determined that it would be unfair to Stanley and improper to enter final judgment for Kelley without a new trial; its order for new trial, however, now limits retrial to the slander count. The trial court, in detailed and thorough findings, related the supporting and opposing evidence to each issue of the slander count upon which new trial was granted. We affirm, finding that the trial court has correctly applied T.R. 59(I)(7).

Plaintiff Stanley worked as director of the Indianapolis sales office for Financial Service Corporation (F.S.C.) pursuant to an oral contract. Defendant Kelley was a salesman working under Stanley in the Indianapolis F.S.C. office. Kelley, after he was fired by Stanley, telephoned the F.S.C. home office to request a hearing on his dismissal and informed a top executive that he was terminated by Stanley because he would not support Stanley's move to take the Indianapolis office from F.S.C. to form his own company. Stanley was subsequently fired from F.S.C. for proselytizing sales representatives and brought this suit against Kelley alleging that his dismissal was caused by the false and malicious communications made by Kelley to the F.S.C. home office. His complaint alleged two theories of recovery, intentional interference with a contractual relationship and slander.

We first review the trial court's determination that the jury's verdict, insofar as it was returned upon the theory of tortious interference with a contractual relationship, was clearly erroneous. The trial court, because it found no evidence that Stanley's oral contract of employment was for a definite and enforceable term, determined upon remand that a new trial upon this theory was unnecessary. When the trial court reviews, as it did here, a motion for judgment on the evidence subsequent to the jury's verdict, i. e., a claim that the verdict is clearly erroneous because not supported by the evidence, it views only the evidence favorable to the non-moving party and the reasonable inferences to be drawn therefrom. The trial court may not weigh the evidence. A verdict is clearly erroneous only "... if there is no substantial evidence or reasonable inference to be adduced therefrom to support an essential element of the claim, i. e., the evidence must point unerringly to a conclusion not reached by the jury." Huff v. Travelers Indemnity Company, (1977) 266 Ind. 414, 363 N.E.2d 985, 990. The standard of appellate review of a trial court determination that the verdict is clearly erroneous is identical to the standard of review guiding trial judges: whether there was evidence of probative value to support each essential element of the claim. Huff, supra. If the evidence conflicts but there is relevant evidence to support the claim, the verdict is not clearly erroneous.

An action in tort for inducing another to break a contract presupposes the existence of a valid and enforceable contract. Helvey v. O'Neill, (1972) 153 Ind.App. 635, 288 N.E.2d 553; Grimm v. Baumgart, (1951) 121 Ind.App. 626, 96 N.E.2d 915. Where there is no promise on the part of the employer that employment will continue for a definite period of time and no binding promise on the part of the employee that he will continue in the employment, the employment relationship is terminable at will and, therefore, the contract of employment is unenforceable with respect to that which remains executory. 2 Shaw v. S.S. Kresge Co., (1975) 167 Ind.App. 1, 328 N.E.2d 775. Such a contract, terminable at will, cannot form the basis of an action for interference with a contractual relationship. Grimm, supra, 96 N.E.2d at 918. 3

Here, there was no evidence that Stanley had a contract of employment with F.S.C. for a term certain. Where the duration of employment cannot be determined from the contract, the contract is at will and either party may terminate it with or without cause at any time. Martin v. Platt, (1979) Ind.App., 386 N.E.2d 1026. Since the employment relationship between Stanley and F.S.C. was terminable at will, the verdict against Kelley, if for inducing Stanley's termination, was clearly erroneous. The trial court was, therefore, correct in removing this theory from its new trial order as no evidence to support an essential element of interference with contractual relations was shown.

We next review the trial court's determination that the jury's verdict, insofar as it was returned upon the slander count, was against the weight of the evidence. In particular, the trial court determined that the verdict was against the weight of the evidence on the issues of falsity, special damages (including proximate cause), and the related issue of punitive damages.

In reviewing a claim that the weight of the evidence preponderates against the jury's verdict, the trial judge sits as a "thirteenth juror." Huff, supra; Bailey v. Kain, (1963) 135 Ind.App. 657, 192 N.E.2d 486. If after sifting and weighing the conflicting evidence and the credibility of witnesses, the trial judge believes a contrary result should have been reached in the minds of reasonable men, it should grant a new trial. Huff, supra. Appellate review of this determination, if it is supported by specific findings which relate the supporting and opposing evidence to each issue upon which a new trial is granted, is narrowly circumscribed. The "trial court's action in granting a new trial is given a strong presumption of correctness." Memorial Hospital v. Scott, (1973) 261 Ind. 27, 31, 300 N.E.2d 50, 53. An appellate court can only examine the record to determine whether:

(a) the trial court abused its judicial discretion;

(b) a flagrant injustice has been done the appellant; or

(c) a very strong case for relief from the new trial order has been made by appellant. Memorial Hospital, supra.

The trial court supported its new trial award with specific findings relating the supporting and opposing evidence to each issue upon which a new trial was granted. The trial court found that the evidence preponderated against Stanley and for Kelley on the issue of falsity (i. e. malice), special damages (proximate cause), and punitive damages. As regards the issue of falsity and malice, the trial court found that Kelley did not maliciously make any untrue statements to damage Stanley's business or personal reputation. Because Kelley's statements to F.S.C. management were protected by a qualified privilege, Stanley was required to prove that the publication of the statement was made with malice. Indianapolis Horse Patrol Inc. v. Ward, (1966) 247 Ind. 519, 524, 217 N.E.2d 626, 629. Actual malice will be found to exist where the defamatory falsehood was spoken with knowledge of its falsity or with reckless disregard of whether it was false, or with ill will, or if the speaker abuses the privilege by going beyond its scope. Weenig v. Wood, (1976) 169 Ind.App. 413, 349 N.E.2d 235. After reciting the evidence, the trial court found that there was not a preponderance of evidence showing that Kelley maliciously communicated false statements to F.S.C. Rather, the trial court found that the statements were true and were communicated without malice. Although Stanley...

To continue reading

Request your trial
21 cases
  • Moore v. University of Notre Dame
    • United States
    • U.S. District Court — Northern District of Indiana
    • 12 Junio 1997
    ...and that have been actually incurred as a natural and proximate cause of the wrongful act." Tacket, 937 F.2d at 1206; Stanley v. Kelley, 422 N.E.2d 663 (Ind.Ct.App.1981). Moore argues that defendants' statements have "tended to injure him in his profession." He claims injury to his good nam......
  • Lessley v. City of Madison, Ind., Case No. 4:07-cv-0136-DFH-WGH.
    • United States
    • U.S. District Court — Southern District of Indiana
    • 21 Agosto 2009
    ...of the communication. Northern Indiana Public Serv. Co. v. Dabagia, 721 N.E.2d 294, 304 (Ind.App.1999), quoting Stanley v. Kelley, 422 N.E.2d 663, 669 (Ind.App.1981). Plaintiffs have pointed to no damages that Huntington's and Barlow's statements caused them. Without a showing of special da......
  • Rambo v. Cohen
    • United States
    • Indiana Appellate Court
    • 26 Febrero 1992
    ...special damages, i.e., damages, generally pecuniary in nature, which are consequential to the defamation. Id. See also Stanley v. Kelley (1981), Ind.App., 422 N.E.2d 663 (discussing presumed and special In either a per se or a per quod defamation action, however, the plaintiff may recover f......
  • Moffett v. Gene B. Glick Co., Inc.
    • United States
    • U.S. District Court — Northern District of Indiana
    • 30 Noviembre 1984
    ...tort for interference with a contractual relationship presupposes the existence of a valid and enforceable contract. Stanley v. Kelley, 422 N.E.2d 663, 667 (Ind.App.1981); Helvey v. O'Neill, 153 Ind.App. 635, 288 N.E.2d 553 (1972); Grimm v. Baumgart, 121 Ind.App. 626, 96 N.E.2d 915 (1951). ......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT