Associates Corp. of North America v. Smithley

621 N.E.2d 1116, 8 I.E.R. Cas. (BNA) 1417, 1993 Ind. App. LEXIS 1135, 1993 WL 358774
CourtIndiana Court of Appeals
DecidedSeptember 20, 1993
Docket35A05-9303-CV-106
StatusPublished
Cited by15 cases

This text of 621 N.E.2d 1116 (Associates Corp. of North America v. Smithley) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Associates Corp. of North America v. Smithley, 621 N.E.2d 1116, 8 I.E.R. Cas. (BNA) 1417, 1993 Ind. App. LEXIS 1135, 1993 WL 358774 (Ind. Ct. App. 1993).

Opinion

BARTEAU, Judge.

The Associates Corporation of North American (ACONA) and Darryl Webb (collectively referred to as ACONA) appeal the denial of their motions for partial summary judgment on Shelly Smithley's claims of assault and battery and defamation. Restated, the issues which have been certified for this appeal are:

I. Whether the court should have granted summary judgment on Smithley's allegations of defamation where the undisputed evidence is that the alleged defamatory statement was true;
II. Whether the court should have granted summary judgment in favor of Webb on Smithley's claim of defamation where it is undisputed that Webb did not make the alleged defamatory statements;
III. Whether Smithley is precluded by Ind.Code 22-38-2-6 from pursuing her claim of assault and battery against ACONA; and
IV. Whether some of Smithley's allegations of assault and battery against Webb are barred by the statute of limitations.

FACTS

ACONA is a non-bank financing center. Shelly Smithley, a former ACONA employee, initiated this action after she was discharged by ACONA for dishonesty. The facts that gave rise to this appeal are largely undisputed:

Smithley began working for ACONA as a finance representative at its Fort Wayne branch in January of 1988. She was promoted to Assistant Branch Manager in December, 1989, and became Group Secretary in May, 1990. Darryl Webb was a Branch Manager for ACONA until December, 1990, when he was promoted to Group Manager. Webb was Smithley's supervisor when she was promoted to Group Secretary in May, 1990, to the date of her termination.

In late 1989/early 1990, Smithley was Acting Branch Manager of the Fort Wayne branch. During this time, Smithley and Tammy Ertel, another ACONA employee, took a credit application from a customer who already had a loan with ACONA. When Smithley and Ertel tried to obtain a credit rating for this customer, it was discovered that he had not yet made any payments on the first loan. Because of this, the computer could not generate the rating. Stmithley asked Webb (who was then Group Manager) if there was another way to obtain a credit rating for the customer. Webb instructed Smithley to enter a payment on the customer's account, obtain the credit rating, and then "back off" or delete the payment entry. Smithley and Ertel followed through with the instructions on Ertel's terminal. However, instead of "backing off" the entry after the credit rating was determined, Ertel closed her drawer for the evening. Because Ertel had not actually received funds from the customer for the payment that was entered in the computer, Ertel's drawer would not balance. In order to balance the drawer, Ertel made various entries on the branch's "suspense," or general ledger account. Two checks were received from the customer the next day, forcing Ertel to engage in more creative accounting in an attempt to correct the previous day's mistake.

During a routine company audit of the branch in May or June, 1990, by Brian Halmaghi, the entries in the suspense ac count were discovered and determined to be improper entries. At this time, Smithley *1119 was working as Group Secretary {under Webb's supervision); however, she was approached by Halmaghi because she was Acting Branch Manager at the time the improper entries were made. Before she talked to Halmaghi, Smithley spoke with Brenda Thomas, who was the manager of the Fort Wayne branch at the time of the audit. Following Thomas's instructions, Smithley gave the auditor a false explanation for the accounting errors. It was later discovered by ACONA that the story related by Smithley was false, and Smithley's employment was terminated because of dishonesty.

Smithley also raises allegations of assault and battery against ACONA and Webb. She alleges that Webb had placed his crotch against her arm when he talked to her as she sat at her desk and that he placed one arm around her and pulled her close to his side.

STANDARD OF REVIEW

When reviewing a summary judgment motion, this court stands in the shoes of the trial court. Department of Rev. v. Caylor-Nickel Clinie (1992), Ind., 587 N.E.2d 1811. Summary judgment is appropriate only when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Ind. Trial Rule 56(C). The burden is on the moving party to prove there are no genuine issues of material fact and that judgment should be entered as a matter of law. Once this burden had been met, the opponent may not rest upon the pleadings, but must set forth specific facts showing a genuine issue for trial. T.R. 56(B) We will address Smithley's claims against ACONA and her claims against Webb separately.

DEFAMATION CLAIM AGAINST ACONA

Smithley's claim of defamation against ACONA stems from the facts surrounding her termination. When it was discovered that Smithley lied to the auditor, Smithley was told to either resign or face termination. She chose termination and requested that she be given the reason for her termination in writing. She received a letter from the ACONA office in Chicago stating that she was terminated because of dishonesty. The letter was signed by a secretary in the home office for Darryl Webb, and allegedly "published" among ACONA personnel in the Chicago office. ACONA argues that summary judgment should be granted on this claim because it is undisputed that Smithley was dishonest and that she was dismissed because of her dishonesty.

The elements of defamation are: 1) communication with defamatory imputation; 2) malice; 3) publication and 4) damages. Rambo v. Cohen (1992), Ind.App., 587 N.E.2d 140, reh'g denied, trans. de-nmied. Truth is a complete defense to a claim of defamation. Near East Side Community Organization v. Hair (1990), Ind.App., 555 N.E.2d 1324.

Smithley concedes that truth is a complete defense; however, she argues that a jury could find the letter libelous because it failed to include the fact that she was told by her supervisor to be dishonest with the auditor. She cites Golden Bear Dist. Sys. of Texas, Inc v. Chase Revel, Inc. (5th Cir.1983), 708 F.2d 944, Memphis Publishing Co. v. Nichols (1978), Tenn., 569 S.W.2d 412 and Dunlap v. Philadelphia Newspapers, Inc., (1982), 301 Pa.Super. 475, 448 A.2d 6, in support of her argument.

We note first of all that Smithley contends that she was told by Thomas, a branch manager, to tell a false story to the auditor. At the time the audit was conducted, Webb, and not Thomas, was Smith-ley's direct supervisor. Had ACONA indicated that Smithley was told by her supervisor to be dishonest, ACONA would not have been telling the truth.

Secondly, the cases cited by Smithley in support of her argument are factually distinct from the situation before us today.

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621 N.E.2d 1116, 8 I.E.R. Cas. (BNA) 1417, 1993 Ind. App. LEXIS 1135, 1993 WL 358774, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associates-corp-of-north-america-v-smithley-indctapp-1993.