Becker v. Alloy Hardfacing & Engineering Co.

390 N.W.2d 374
CourtCourt of Appeals of Minnesota
DecidedSeptember 24, 1986
DocketC6-85-2340
StatusPublished
Cited by2 cases

This text of 390 N.W.2d 374 (Becker v. Alloy Hardfacing & Engineering Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Becker v. Alloy Hardfacing & Engineering Co., 390 N.W.2d 374 (Mich. Ct. App. 1986).

Opinions

OPINION

LANSING, Judge.

William Becker brought suit against appellants Alloy Hardfacing & Engineering Co., William Aulik, and Mark Aulik for defamation, unpaid wages, and wage penalties after he was discharged from a sales job at Alloy. The defendants appeal from a judgment and order denying a new trial, [376]*376claiming error in the jury instructions, error in evidentiary rulings, and insufficiency of the evidence. Becker filed a notice of review, arguing the trial court erred in failing to award him wage penalties and attorney’s fees. We affirm and remand.

FACTS

William Becker did not complete high school but has worked successfully in the construction and waste processing industries for most of his life. In 1974 he formed his own corporation, Environmental Resources, Inc., which functioned until 1979, when the corporation declared bankruptcy. Then in his mid-fifties, Becker began looking for a job.

In November 1980 Becker obtained employment as a sales representative for Alloy Hardfacing & Engineering Co. Alloy manufactures equipment used in the rendering of animal parts. The company is owned by William Aulik, and his son, Mark Aulik, is general manager.

Becker started at a salary of $24,000 a year, which was to be reviewed in 90 days. The review was postponed until June 1981, at which time the Auliks indicated they were pleased with Becker’s performance. Becker said his salary was increased to $30,000; the Auliks said Becker’s salary remained the same, but they began issuing him separate checks each week, as an advance against commissions, that equaled $6,000 per year. Becker also received a company car and a $1,500 check: Becker testified the sum represented a retroactive car allowance of $250 per month for six months; the Auliks testified the money represented, again, an advance against Becker’s commissions. The Auliks testified they intended to reconcile the advances against commissions earned on an annual basis. Becker denied that any sums he received were advances.

All appeared to go well for Becker until early June 1982, when Becker attended a company sales seminar. One evening after the seminar Becker had a conversation with two other Alloy sales representatives in which he criticized Mark Aulik’s handling of the Fritz Co. account. One of the sales representatives, Grey Crystal, reported Becker’s comments to the Auliks.

On July 19, 1982, the Auliks summoned Becker to a meeting, supposedly regarding one of Becker’s accounts. Instead, when Becker arrived, they gave him a letter stating that “in light of recent events” they could no longer retain him as a sales representative. In the letter the Auliks offered Becker the alternative of working as a manufacturer’s representative on a commission-only basis. The letter stated that Becker had 24 hours to consider the offer. If he declined it, he was to return the company credit cards and the company car.

Subsequent events are disputed. Becker testified that the Auliks began swearing and screaming at him. Becker believed, based on prior experience, that Bill Aulik had been drinking. Becker decided to leave rather than subject himself to further verbal abuse. The Auliks ran after him into the parking lot and demanded the keys to the car. Becker, who lives about 35 miles from the office, had no other way to get home because the meeting had taken place after everyone else had left the plant for the night. Becker said he told the Auliks that the letter gave him 24 hours, and he would return with his decision and the car the next day.

The Auliks testified that Becker became upset and that the situation deteriorated to the point where it was clear Becker would not accept the alternative position with Alloy. Bill Aulik testified he did not want Becker to drive the company car because Becker was too upset to drive. In an attempt to keep Becker from leaving the premises, Mark Aulik called the Blooming-ton police. Becker left before the police arrived. The Auliks reported the automobile stolen to the Bloomington police department and to the sheriff’s departments of Rice and LeSueur Counties.

Mark Aulik then called Becker’s home. Because William Becker had not yet arrived home, Aulik spoke with Grace Becker. She testified that Aulik said Becker [377]*377was “a hell of a salesman” and could make good money as a manufacturer’s representative. Becker returned to the plant that evening with his wife and left the car parked in the loading dock area. Becker said his sales manual and price list were in the trunk of the car; his customer list was on his desk in the office. Becker turned the credit cards over to a Bloomington detective the next day.

On July 20, John Randall, then the plant superintendent at Alloy, arrived at work and found Becker’s car parked in the loading dock. Randall called Mark Aulik because he needed keys to move the car before a shipment arrived. Mark Aulik brought the keys and looked through the car. Randall testified he did not know whether Aulik removed anything from the car, but said when he cleaned the car out later there were no materials in the trunk. The car was then given to Grey Crystal, the employee who had reported Becker’s criticisms to the Auliks. All the papers and files in Becker’s desk were removed and stacked in Bill Aulik’s office.

Within a few weeks Becker obtained a sales position with Anderson International, a Cleveland-based company that was a competitor of Alloy’s. When Bill Aulik discovered where Becker was working, he said to John Randall that he was going to “take care of that particular problem.”

On August 6, 1982, the Auliks sent letters, through their attorney, to the president of Anderson International and to Becker’s attorney, in which they accused Becker of retaining “confidential business property of Alloy including Alloy customer lists, Alloy price lists, and the Alloy sale manual.” The letter threatened legal action, including suit for conversion and in-junctive relief, against Becker and Anderson International.

The Auliks contended it was not until after they sent the letter that they discovered Grey Crystal was using Becker’s sales manual and price list, which they said Crystal found in the trunk of the car Becker had used. Bill Aulik said he never looked through the materials taken from Becker’s office, even though the materials were stacked in his own office for months. Mark Aulik was impeached at trial with his deposition testimony, in which he said he knew Becker’s customer list was left on Becker’s desk. The Auliks never notified Anderson International of the purported discovery.

Becker brought this suit for defamation, unpaid wages, and wage penalties. Alloy contended it owed no wages to Becker after offsetting advances against commissions, unsubstantiated business expenses, and certain expenses associated with the Fritz account. The jury found by special verdict that Becker was entitled to all wages claimed, amounting to about $2,100, and offset $62 in personal expenses. In addition, the jury found that the stolen vehicle reports and the letter to Anderson International contained false statements, that the Auliks knew they were false, that a reasonable business person in the same circumstances would not have made those statements, and that the statements were made “in willful indifference or deliberate disregard” for Becker’s rights. The jury awarded Becker $30,000 in actual damages and $30,000 in punitive damages ($10,000 was assessed against Alloy and each of the Auliks).

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Related

Becker v. Alloy Hardfacing & Engineering Co.
401 N.W.2d 655 (Supreme Court of Minnesota, 1987)
Becker v. Alloy Hardfacing & Engineering Co.
390 N.W.2d 374 (Court of Appeals of Minnesota, 1986)

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