Thompson v. Better-Bilt Aluminum Products Co., Inc.
| Decision Date | 28 March 1996 |
| Docket Number | CA-CV,BETTER-BILT,No. 1,1 |
| Citation | 187 Ariz. 121,927 P.2d 781,213 Ariz. Adv. Rep. 36 |
| Parties | , 11 IER Cases 971 Jason THOMPSON and Alia Thompson, husband and wife, Plaintiffs-Appellants, v.ALUMINUM PRODUCTS COMPANY, INC., a foreign corporation, Defendant-Appellee. 94-0298. |
| Court | Arizona Court of Appeals |
Plaintiffs Jason and Alia Thompson appeal the verdict in favor of defendant Better-Bilt Aluminum Products Company, Inc. (Better-Bilt). The central issues presented are whether the trial court erred in dismissing the Thompsons' negligence and breach of contract claims, admitting after-acquired evidence of employee misconduct, instructing the jury on proof required in a wrongful discharge claim, and presenting the jury with special interrogatories. For the following reasons, we affirm.
On or about April 8, 1981, Jason Thompson (Thompson) began working at Better-Bilt's plant in Prescott Valley, Arizona. From June 1981 through January 1985, Thompson filed six workers' compensation claims for injuries sustained while working for Better-Bilt. Although five of the injuries were relatively minor, some not requiring absence from work, Thompson's first injury, the amputation of his left index finger, left him with a twenty-five percent impairment to his left hand.
On October 29, 1984, Thompson was terminated for excessive absenteeism and tardiness, but was reinstated the next day after he reassured the general manager that he would not be late again. In May of 1985 Thompson filed a seventh workers' compensation claim for a back injury. Thompson returned to work on July 13 but went back on industrial leave on July 19 due to his injury.
Thompson received a letter from Better-Bilt Personnel Director Richard L. Bonney dated August 29, 1985, advising Thompson that he would be terminated if he did not report to Better-Bilt by September 4. The letter stated that employees on injury leave were required to "call in" each Wednesday and report their conditions and progress. Although it is unknown whether "calling in" was a formal Better-Bilt policy, Thompson was not terminated when he missed the September 4 deadline by one day.
Sometime between September 27 and October 6, Thompson chanced to meet Susie Dale, Better-Bilt's personnel assistant, at a Safeway grocery store. Dale later recalled that during their short, cordial conversation Thompson told her, "You know, I'll probably never be able to return to that type of work again." Dale conceded that Thompson never told her he was quitting his job at Better-Bilt and Dale did not ask Thompson to clarify his statement.
Within the next week, Dale told Bonney about her conversation with Thompson and Bonney directed Dale to document the conversation and prepare paperwork delineating Thompson as a "voluntary resignation." Bonney then called Better-Bilt's labor attorney who advised Bonney that Thompson had voluntarily quit. Thompson's termination was made effective October 1, 1985. At the time, Better-Bilt personnel management did not have a policy in place for notifying employees of voluntary termination decisions, believing it made for unnecessary paperwork. Thompson continued to call Better-Bilt after October 1 but was never apprised of his termination. On October 30, he received a birthday card from Better-Bilt.
On October 25 Alia Thompson (Alia) was hospitalized for surgery relating to a tubal pregnancy. The expenses totaled $5,264.00. Thompson went to Better-Bilt on November 4 to fill out an insurance form for the expenses, Alia having been covered on his employee insurance plan. He was informed by Dale that his coverage had been terminated because he had quit as of October 1. Thompson protested that he hadn't meant to imply that he was quitting his job during the Safeway conversation. He was unable to convert his Better-Bilt group insurance to a private plan because, pursuant to conversion policy, over thirty-one days had elapsed since the termination of his employee plan.
In an amended complaint filed on September 11, 1986, Thompson alleged the following causes of action against Better-Bilt:
1. negligent, intentional, and fraudulent concealment of his termination;
2. intentional interference with his contractual relationship with Better-Bilt's insurance company;
3. wrongful termination in violation of public policy for filing a workmen's compensation claim;
4. breach of employment contract by terminating for other than good cause and for not informing him of his termination date;
5. breach of the covenant of good faith and fair dealing by considering him terminated without first giving him notification.
The trial court granted directed verdicts for Better-Bilt on the intentional interference with contract claim and on Thompson's request for punitive damages. Additionally, before the case went to the jury, the court dismissed the counts alleging concealment of the termination and breach of the covenant of good faith and fair dealing. As a result, only the breach of employment contract and wrongful termination claims were submitted to the jury. The jury returned a verdict for Thompson on the wrongful termination claim, assessing damages at $15,700.00, but did not make a finding on the breach of contract claim.
Better-Bilt appealed the giving of a jury instruction on negligent discharge and the court of appeals agreed that the instruction was improper, although it clarified that Thompson could have stated a simple negligence claim based on the manner of his termination. The court also found error in allowing the jury to have considered Alia Thompson's damages, finding that Better-Bilt owed her no duty. Finally, the court held the trial court erred in awarding treble damages to Thompson for unpaid bonus and vacation pay, but that Thompson's attorneys' fees award would be proper if he prevailed on retrial.
On cross-appeal by Thompson, the court of appeals reversed the trial court's decision denying videotaping costs to Thompson but upheld the trial court's denial of punitive damages. The court noted that Thompson did not raise the dismissal of his good faith claim on appeal. Thompson v. Better-Bilt, No. 1 CA-CV 88-436 (Ct.App. Dec. 4, 1990).
Thompson subsequently sought review by our supreme court. 1 The court granted review on the issues of Alia's medical expenses and punitive damages. Acknowledging that the case had been correctly remanded, the supreme court determined that the court of appeals had erred in holding that Thompson could not recover damages for Alia's medical expenses and determined that the award of punitive damages was an issue for the jury if Thompson could show that Better-Bilt acted with actual malice.
On remand, the trial court granted Better-Bilt's motion in limine, precluding Thompson from presenting evidence on any claim but wrongful termination. The court then denied Thompson's motion in limine requesting preclusion of defendant's after-acquired evidence defense that Thompson falsified information on his employment application. During the trial, Better-Bilt introduced evidence that it had not terminated Thompson despite technically having had opportunities to do so throughout the time of his employ. Better-Bilt also introduced evidence that on his employment application Thompson had failed to inform the company about a former employer and about his prior workers' compensation history.
The trial court submitted special interrogatories to the jury instructing it to make a finding as to whether Thompson made a material misstatement of fact on his employment application and, if so, whether Better-Bilt would have fired Thompson had it learned of the misstatement during Thompson's employment. The jury was instructed that if it gave affirmative answers to both questions, the court would decide whether the after-acquired evidence would bar or reduce any recovery awarded Thompson. On December 3, 1993, the jury returned its verdict in favor of Better-Bilt. The jury did not answer the special interrogatories. Thompson's motion for new trial was denied.
Thompson appeals and we have jurisdiction pursuant to Ariz.Stat.Ann. (A.R.S.) §§ 12-2101(B) and (F)(1).
Thompson presents the following issues for review:
1. whether the trial court erred in precluding evidence on Thompson's negligent concealment and breach of contract claims;
2. whether the trial court erred in instructing the jury on the burden of proof required to show wrongful discharge or on the "legitimate business reason" defense;
3. whether the trial court erred in allowing Better-Bilt to bring its after-acquired evidence defense by admitting evidence of Thompson's employee misconduct;
4. whether the trial court erred in submitting special interrogatories to the jury;
5. whether Thompson is entitled to attorneys' fees on appeal.
In its minute entry of February 22, 1993, the trial court ordered that the issue in the case was wrongful termination. Thompson complains that this ruling erroneously precluded his claims of negligent concealment and breach of contract as raised in his amended complaint in the first action. However, the negligent concealment claim was summarily dismissed before the first trial, and Thompson did not appeal that dismissal at the time of the first appeal. Further, in the first trial, the jury did not return a verdict on the breach of contract claim. Thompson failed to seek relief from the trial court regarding the lack of a verdict and did not challenge any of the jury's...
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