15 Fair empl.prac.cas. 1783, 14 Empl. Prac. Dec. P 7758 Marian Barnes, Cross-Appellee v. Callaghan & Company, Cross-Appellant

559 F.2d 1102, 24 Fed. R. Serv. 2d 263, 1977 U.S. App. LEXIS 12223, 14 Empl. Prac. Dec. (CCH) 7758, 15 Fair Empl. Prac. Cas. (BNA) 1783
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 29, 1977
Docket76-1654-76-1656
StatusPublished
Cited by20 cases

This text of 559 F.2d 1102 (15 Fair empl.prac.cas. 1783, 14 Empl. Prac. Dec. P 7758 Marian Barnes, Cross-Appellee v. Callaghan & Company, Cross-Appellant) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
15 Fair empl.prac.cas. 1783, 14 Empl. Prac. Dec. P 7758 Marian Barnes, Cross-Appellee v. Callaghan & Company, Cross-Appellant, 559 F.2d 1102, 24 Fed. R. Serv. 2d 263, 1977 U.S. App. LEXIS 12223, 14 Empl. Prac. Dec. (CCH) 7758, 15 Fair Empl. Prac. Cas. (BNA) 1783 (7th Cir. 1977).

Opinion

CUMMINGS, Circuit Judge.

Four days after the commencement of trial, pursuant to prior leave, plaintiff filed her four-count Third Amended Complaint. 1 Count One was brought under Section 703(a)(1) of the Civil Rights Act of 1964 (42 U.S.C. § 2000e-2(a)(l)). Plaintiff, a female resident of Des Plaines, Illinois, alleged that on September 25, 1972, she was discharged as head of its Editorial Department by defendant publisher of law books. She claimed that she was discharged and otherwise discriminated against because of sex and that she was succeeded by a male. She filed a timely charge with the Equal Employment Opportunity Commission on October 4, 1972. That agency issued her a notice of right-to-sue letter on April 13, 1973. Plaintiff asserted that after she filed her EEOC charge, defendant retaliated and harassed and intimidated her. In Count One she sought appropriate injunctive relief and reinstatement with back pay, plus $10,000 in punitive damages, costs and attorney’s fees. 2

Count Four was a pendent claim for slander and asserted that on September 26, 1972, Rae Smith, defendant’s executive vice president, made the following slanderous statements to her former co-employees (including Richard Young and Stephen Hill):

“Marian Barnes was terminated because she was a non-communicator.”
“Marian Barnes was terminated because she failed to communicate.”

Count Four also alleged that on December 14,1972, Michael Cudahy, defendant’s president, made the following slanderous statements to Roger Sekara, the personnel director of Baxter Laboratories, concerning plaintiff’s abilities as an employee of defendant:

“That we had to let Marian Barnes go because in our opinion her managing abilities were not keeping up with what we needed.”
“That Marian Barnes had been managing our editorial department and the demands of that position had gotten beyond her.”
“That Marian Barnes was not communicating company policy to people.”
“That Marian Barnes said management was a bunch of bums.”
“That Marian Barnes was attempting to isolate people from Mr. Cudahy.”

After asserting that malice was the gist of Count Four, plaintiff sought $560,000 in damages plus costs and attorneys’ fees and an additional $100,000 in punitive damages.

In a memorandum opinion of April 30, 1975, Judge Flaum adhered to a prior ruling by then District Judge Tone, to whom the case had been originally assigned, holding that the civil rights count could not be maintained as a class suit. Citing Van Hoomissen v. Xerox Corporation, 368 F.Supp. 829 (N.D.Cal.1973), Judge Flaum also held that punitive damages could not be awarded under Count One. In the same order, he decided that the slander action contained in Count Four was not barred by the one-year Illinois statute of limitations (1975 Ill.Rev.Stats. Ch. 83, § 14) even though the Count was not filed until March 25, 1975, long beyond the limitations period, because the “gravamen of the original corn- *1105 plaint was clearly the injury to plaintiffs reputation and employment opportunity occasioned by the alleged malicious conduct of the defendant.”

Judge Grady, to whom the case was subsequently transferred, simultaneously held a bench trial of the sex discrimination case and a jury trial of the slander case. The jury awarded plaintiff $35,000 compensatory damages and $10,000 exemplary damages on the slander count, and the district judge found in favor of defendant on the bench trial of the sex discrimination count. We reverse the slander judgment and affirm the Civil Rights Act judgment.

The Illinois Statute of Limitations Bars Recovery for Slander

We need not consider the merits of Count Four, the slander count, because of the bar of the one-year Illinois statute of limitations. 3 The slanderous statements purportedly occurred on September 26,1972 and December 14, 1972. However, malice was not attributed to defendants until the January 27, 1975, First Amended Complaint, and the first time a slander count as such was alleged was in Count Four of plaintiffs March 25, 1975, Second Amended Complaint. This was more than two years after the allegedly slanderous statements.

Plaintiff can take no comfort from paragraph 8 of Count II of the original complaint, drafted by earlier counsel, because that count (as amended) was voluntarily dismissed by her during the trial. Moreover, Count II was plainly for breach of a year-to-year employment contract and only casually mentioned in paragraph 8, as one aspect of the damage resulting to plaintiff from the breach, that plaintiff’s discharge injured her professional reputation. The alleged defamation injury which went to the jury concerned statements made subsequent to plaintiff’s dismissal. But paragraph 8 speaks only to the dismissal itself; it intimates neither the fact nor content of any subsequent defamatory statements. Count II was entirely devoid of any allegations of slander as a cause of action as distinguished from allegations of impairment of reputation as part of damages for which a remedy was sought under a contract action.

Under Illinois law, 4 the slander allegations contained in Count Four of the Second and Third Amended Complaints do not relate back to the filing of the original complaint but are regarded as a new cause of action. Millsaps v. Bankers Life Company, 35 Ill.App.3d 735, 342 N.E.2d 329 (1976); Colucci v. Chicago Crime Commission, 31 Ill.App.3d 802, 334 N.E.2d 461 (1975); Larkin v. Gerhardt, 21 Ill.App.2d 122, 157 N.E.2d 426 (1959) (abst. op.). We cannot agree with the district judge that the gravamen of the original complaint “was clearly the injury to plaintiff’s reputation * * * ” (Plaintiff’s App. 3). Instead, Count I of that April 23, 1973, initial pleading was a civil rights action and Count II (the only other count) was for breach of contract. Under Illinois law, a well-pleaded slander action requires allegations of malice, Judge v. Rockford Memorial Hospital, *1106 17 Ill.App.2d 365, 150 N.E.2d 202 (1958), and of publication of the defamation to a third party. Ginsburg v. Black, 237 F.2d 790 (7th Cir. 1956), certiorari denied, 353 U.S. 911, 77 S.Ct. 669, 1 L.Ed.2d 665; Libert v. Turzynski, 129 Ill.App.2d 146, 262 N.E.2d 741 (1970).

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559 F.2d 1102, 24 Fed. R. Serv. 2d 263, 1977 U.S. App. LEXIS 12223, 14 Empl. Prac. Dec. (CCH) 7758, 15 Fair Empl. Prac. Cas. (BNA) 1783, Counsel Stack Legal Research, https://law.counselstack.com/opinion/15-fair-emplpraccas-1783-14-empl-prac-dec-p-7758-marian-barnes-ca7-1977.