Benson v. AJR, INC.

698 S.E.2d 638, 226 W. Va. 165, 31 I.E.R. Cas. (BNA) 684, 2010 W. Va. LEXIS 5
CourtWest Virginia Supreme Court
DecidedJanuary 28, 2010
Docket34748
StatusPublished
Cited by5 cases

This text of 698 S.E.2d 638 (Benson v. AJR, INC.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Benson v. AJR, INC., 698 S.E.2d 638, 226 W. Va. 165, 31 I.E.R. Cas. (BNA) 684, 2010 W. Va. LEXIS 5 (W. Va. 2010).

Opinions

PER CURIAM:

The appellants herein and defendants below, AJR, Inc., and John M. Rhodes (hereinafter collectively referred to as “AJR”), appeal from an order entered July 18, 2008, by the Circuit Court of Wood County. By that order, the circuit court entered judgment in favor of the appellee herein and plaintiff below, Danny L. Benson (hereinafter referred to as “Mr. Benson”), in the amount of $94,910.25, following a jury trial of Mr. Benson’s claims against AJR to enforce the terms of his employment contract subsequent to his termination. On appeal to this Court, AJR contends that the circuit court did not follow the mandate issued by this Court in the earlier appeal of this case in Benson v. AJR, Inc., 215 W.Va. 324, 599 S.E.2d 747 (2004) (per curiam) (.Benson I), and that the circuit court improperly entered judgment in favor of and awarded damages to Mr. Benson. Upon a review of the parties’ arguments, the record designated for appellate consideration, and the pertinent authorities, we affirm the decision of the Wood County Circuit Court.

I.

FACTUAL AND PROCEDURAL HISTORY

The instant proceeding constitutes the third time these parties have been before [168]*168this Court with respect to the instant controversy involving Mr. Benson’s employment contract with AJR. To understand the case currently before the Court, it is necessary to briefly review the underlying facts.1

Mr. Benson is a welder, and he was employed by AJR, a corporation which manufactures and welds truck beds. When the company was sold in 1997, Mr. Benson entered into an “Employment Agreement” with AJR by the company’s new owner, John Rhodes.2 Under the terms of the Employment Agreement,

Mr. Benson would be guaranteed employment for a period of eight years beginning on August 29, 1997.[3] While AJR had the right to terminate [Mr. Benson] with only one day’s written notice under this agreement, it was required to continue paying Mr. Benson his salary for the balance of the eight-year term of employment in the absence of three specified conditions. Those conditions were (a) dishonesty; (b) conviction of a felony; and (e) voluntary termination of the agreement by [Mr. Benson].

Benson v. AJR, Inc., 215 W.Va. 324, 325-26, 599 S.E.2d 747, 748-49 (2004) (per curiam) (Benson I) (original footnotes omitted; new footnote added).

Subsequently, on March 2, 1998, AJR conducted a random drug test of all of its employees. While awaiting the test results,

Mr. Rhodes conducted meetings with various AJR personnel during which he inquired of those in attendance whether anyone was aware of an employee who was using illegal drugs or who was arriving at work with illegal drugs or alcohol in their system. [Mr. Benson] attended one of those meetings and admits that he did not respond to this question despite personal knowledge that his drug test would come back positive.

Benson I, 215 W.Va. at 326, 599 S.E.2d at 749 (footnotes omitted). Mr. Benson, who claims to have first used cocaine on the Saturday before the Monday morning when the test was administered, ultimately had a positive test result for cocaine. His test result was more than three times the limit established by the United States Department of Transportation to indicate drug use and impairment. Id.

Thereafter, AJR terminated Mr. Benson on March 6, 1998.4 On Mr. Benson’s “Employment Termination” form, the “Reason for Termination” is listed as “Controlled Substance Testing” ... “Tested Positive for Cocaine.” Mr. Benson’s “Job Function” at the time of his termination was “Supervisor, Special Projects, Steel & Safety.”5 Nearly one year later, on March 4, 1999, Mr. Benson filed a complaint in the Circuit Court of Wood County, West Virginia, asserting two causes of action against AJR and Mr. Rhodes: breach of contract and false light invasion of privacy. By order entered July 23, 2002, the circuit court granted summary judgment in favor of AJR and Mr. Rhodes, and against Mr. Benson, on both of Mr. Benson’s claims. Specifically, the circuit court found that

[Mr. Benson’s] actions show that he was dishonest. [Mr. Benson] knowingly engaged in an illegal activity. [Mr. Benson] knowingly arrived at work with cocaine in [169]*169his system. [Mr. Benson] knowingly violated AJR’s drug-free workplace policy— which he knew would result in his immediate discharge. [Mr. Benson’s] demonstrated dishonesty relieved AJR of its obligation to continue to pay [Mr. Benson] under the employment agreement.

The circuit court also found in favor of AJR on Mr. Benson’s claim that AJR’s disclosure of his positive drug test results to three individuals, all of whom were employees, managers, or creditors of the corporation, constituted false light invasion of privacy. In short, the circuit court determined that AJR had not acted with bad intent in disclosing Mr. Benson’s test results and that Mr. Benson had failed to satisfy the requisite elements of this claim. As for AJR’s contentions that “[Mr. Benson] may not recover for breach of contract because he materially breached his employment contract” and that such a determination requires resolution by a jury, the circuit court ruled that “[b]ecause this Court’s other holdings render this issue moot, the Court does not address [AJR’s] breach of contract defense to [Mr. Benson’s] Motion for Summary Judgment.”

On the first appeal of this case to this Court, Mr. Benson complained that the circuit court had erred by ruling in favor of AJR on both of his causes of action. In Benson I, 215 W.Va. 324, 599 S.E.2d 747, we determined that whether drug use constituted dishonesty so as to preclude Mr. Benson from recovering under his Employment Agreement upon his termination by AJR was a question of fact that should be decided by a jury and, thus, reversed the circuit court’s ruling on this issue and remanded the same for jury determination:

The record in this ease is unclear as to whether AJR dismissed Mr. Benson from its employ for drug use or for dishonesty. As [Mr. Benson] emphasizes in his argument, nowhere on either of the two termination forms that were introduced below is there any indication that he was dismissed for dishonesty.[6] We are unwilling to make the leap that the trial court did to broadly encompass testing positive for drug use within the meaning of the term “dishonesty.” Consequently, we conclude that [Mr. Benson] is entitled to have a jury determine the basis for AJR’s decision to terminate [him] from its employ. If the jury determines that drug use, rather than dishonesty, was the basis for the dismissal, then the provisions of the employment contract with regard to continued payment of [Mr. Benson’s] salary for the duration of the contract term are applicable. If, however, the jury determines that Mr. Benson was in fact terminated for being dishonest, then AJR is not required to pay his salary under the terms of the employment contract.

Benson I, 215 W.Va. at 328, 599 S.E.2d at 751 (original footnote omitted; new footnote added). However, we affirmed the circuit court’s conclusion that Mr.

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Bluebook (online)
698 S.E.2d 638, 226 W. Va. 165, 31 I.E.R. Cas. (BNA) 684, 2010 W. Va. LEXIS 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/benson-v-ajr-inc-wva-2010.