Ausley v. Bishop

564 S.E.2d 252, 150 N.C. App. 56, 2002 N.C. App. LEXIS 382
CourtCourt of Appeals of North Carolina
DecidedMay 7, 2002
DocketNo. COA01-154
StatusPublished
Cited by1 cases

This text of 564 S.E.2d 252 (Ausley v. Bishop) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ausley v. Bishop, 564 S.E.2d 252, 150 N.C. App. 56, 2002 N.C. App. LEXIS 382 (N.C. Ct. App. 2002).

Opinions

THOMAS, Judge.

The parties are before this Court for the second time in an action involving breach of contract and claims for compensatory and punitive damages based on slander.

The jury awarded defendant, Bryan M. Bishop, $2,500.00 in his counterclaim for breach of contract against plaintiff, Andrew H. Ausley, d/b/a Ausley Appraisal Services. The jury also agreed with defendant as to two counts of slander and awarded him a combined $14,500.00 in compensatory damages and $85,000.00 in punitive damages. In a separate proceeding, defendant was then awarded $35,000.00 in attorneys’ fees.

Plaintiff appeals, and argues seven assignments of error. We affirm in part, vacate in part, and reverse and remand in part.

[59]*59The facts are as follows: Plaintiff was a licensed residential and commercial appraiser in 1994 when defendant came to work for him as a trainee under an oral contract. In June of 1996, defendant took and passed the state registered trainee exam. As defendant was on the verge of acquiring his own license by finishing his apprenticeship in the spring of 1997, he and plaintiff entered into a written employment contract. Among its provisions were ones for non-competition and confidentiality, as well as language that the “employment shall be at will, terminable at any time by either party.”

In June of 1997, the parties opened a branch office for defendant to operate. Approximately three months later, however, a disagreement severed the business relationship. Defendant packed his belongings, and among other items took a Rolodex, notebooks, papers, and apparently some sample reports with the name “Ausley Appraisal Services” on them.

Plaintiff filed suit in October 1997 alleging breach of the non-competition agreement. Defendant answered by denying any violation, and counterclaimed that plaintiff had breached both the 1994 and 1997 contracts, made fraudulent and negligent misrepresentations, engaged in unfair and deceptive trade practices, intentionally or recklessly inflicted emotional distress, engaged in malicious acts of prosecution, and had both libeled and slandered defendant. Plaintiff moved for summary judgment on the counterclaim. In May 1998, the trial court granted the motion.

Defendant appealed to this Court, which affirmed the trial court in Ausley v. Bishop, 133 N.C. App. 210, 515 S.E.2d 72 (1999) (hereinafter referred to as “Ausley /”), except for the counterclaims of slander and part of the counterclaims of unfair and deceptive trade practices and breach of the written contract.

On remand, the trial court submitted and the jury answered the following six issues in the compensatory damages stage (to “avoid prejudice,” defendant was labeled plaintiff and plaintiff was labeled defendant):

1. Did the Defendant Ausley breach the written contract of April 14, 1997?
ANSWER: Yes.
2. If so, what amount of damages did the Plaintiff Bishop sustain?
ANSWER: $2,500.00
[60]*603. Did the Defendant Ausley slander the Plaintiff Bishop by telling Robert Phillips in substance that the plaintiff had committed loan fraud?
ANSWER: Yes.
4. If so, what amount of damages has the Plaintiff Bishop sustained therefrom?
ANSWER: $7,500.00
5. Did the Defendant Ausley slander the Plaintiff Bishop by telling Jody Leon Thomason that the plaintiff may have stolen files and he had called the police?
ANSWER: Yes.
6. If so, what amount of damages has the Plaintiff Bishop sustained therefrom, not previously included in your answer to Issue Four?
ANSWER: $7,000.00

In the punitive damages stage, the trial court submitted and the same jury answered two issues:

1. Is the Defendant Ausley liable to the Plaintiff Bishop for punitive damages?
ANSWER: Yes.
2. What amount of punitive damages, if any, does the jury in its discretion award to the Plaintiff Bishop?
ANSWER: $85,000.00

The trial court then found that the slanders constituted unfair and deceptive trade practices. Defendant elected in open court to recover the punitive damages instead of treble damages in accordance with N.C. Gen. Stat. § 75-16 (1999).

The trial court denied plaintiffs motions for judgment notwithstanding the verdict under Rule 50(b) of the North Carolina Rules of Civil Procedure and for a new trial under Rule 59. In a separate proceeding before a trial judge different than the one who presided during the jury trial, plaintiff was ordered to pay defendant $35,000.00 in attorneys’ fees.

[61]*61In his first assignment of error, plaintiff contends the trial court erred in submitting the issue of slander involving Jody Thomason to the jury. He argues there was no allegation of the slander in defendant’s counterclaim and, even if it had been properly pled, recovery was barred because the statement was true and there were no damages. We agree.

Defendant alleges in his counterclaim two acts of slander by plaintiff: (1) plaintiff verbally conveyed to a third party a defamatory and slanderous statement about defendant in that he told a representative from defendant’s personal mortgage lender, among other things, that defendant had provided the lender fraudulent verification of his income; and (2) plaintiff told a representative of the Winston-Salem Police Department that defendant had embezzled files belonging to plaintiff.

The third party referenced in (1) above is Robert Phillips. We note briefly that the record indicates Phillips was actually defendant’s mortgage broker, not lender. Thomason, owner of a mortgage company and a client and business associate of both parties, was not mentioned in (2) but it was a conversation plaintiff had with him concerning the police report that formed the basis of the jury’s award. Evidence was introduced that plaintiff telephoned Thomason, told him that defendant was no longer employed by him, some files were missing, and that the police were involved. Afterwards, however, Thomason continued to have ongoing business relationships with both parties. Additionally, defendant acknowledged that he may have taken sample files with him when he left.

Rule 8(a) of our Rules of Civil Procedure requires that a claim for relief contain a “short and plain statement of the claim sufficiently particular to give the court and the parties notice of the transactions .. . intended to be proved showing that the pleader is entitled to relief.” N.C.R. Civ. P. 8(a). “The purpose of Rule 8(a) is to establish that the plaintiff will be entitled to some form of relief should he prevail on the claim raised by the factual allegations in his complaint.” Holloway v. Wachovia Bank and Trust Co., 339 N.C. 338, 346, 452 S.E.2d 233, 237 (1994).

Here, defendant did not allege in his counterclaim that any slanderous remarks to Thomason were made by plaintiff.

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Bluebook (online)
564 S.E.2d 252, 150 N.C. App. 56, 2002 N.C. App. LEXIS 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ausley-v-bishop-ncctapp-2002.