Beverly Sanders v. Robert Bosch Corporation, a Delaware Corporation Registered to Do Business in South Carolina, Beverly Sanders v. Robert Bosch Corporation, a Delaware Corporation Registered to Do Business in South Carolina

38 F.3d 736
CourtCourt of Appeals for the Fourth Circuit
DecidedJanuary 24, 1995
Docket93-2351
StatusPublished

This text of 38 F.3d 736 (Beverly Sanders v. Robert Bosch Corporation, a Delaware Corporation Registered to Do Business in South Carolina, Beverly Sanders v. Robert Bosch Corporation, a Delaware Corporation Registered to Do Business in South Carolina) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beverly Sanders v. Robert Bosch Corporation, a Delaware Corporation Registered to Do Business in South Carolina, Beverly Sanders v. Robert Bosch Corporation, a Delaware Corporation Registered to Do Business in South Carolina, 38 F.3d 736 (4th Cir. 1995).

Opinion

38 F.3d 736

10 IER Cases 1, 10 IER Cases 479, 10
IER Cases 480

Beverly SANDERS, Plaintiff-Appellee,
v.
ROBERT BOSCH CORPORATION, a Delaware Corporation registered
to do business in South Carolina, Defendant-Appellant.
Beverly SANDERS, Plaintiff-Appellant,
v.
ROBERT BOSCH CORPORATION, a Delaware Corporation registered
to do business in South Carolina, Defendant-Appellee.

Nos. 93-2351, 93-2423.

United States Court of Appeals,
Fourth Circuit.

Argued July 11, 1994.
Decided Oct. 28, 1994.
Petition for Rehearing and Suggestion for Rehearing In Banc
Jan. 24, 1995.

ARGUED: Henry S. Knight, Jr., Nelson, Mullins, Riley & Scarborough, Columbia, SC, Richard Bruce Watson, Nelson, Mullins, Riley & Scarborough, Charleston, SC, for appellant. Margaret D. Fabri, Charleston, SC, Terry Ann Rickson, Charleston, SC, for appellee. ON BRIEF: Craig M. Cornish, Cornish & Dell'Olio, Colorado Springs, CO, for appellee.

Before RUSSELL, WIDENER, and HALL, Circuit Judges.

Affirmed by published opinion. Judge RUSSELL wrote the opinion, in which Judge HALL joined. Judge WIDENER wrote a concurring and dissenting opinion.

OPINION

DONALD RUSSELL, Circuit Judge:

Plaintiff Beverly Sanders was a security officer employed by Guardsmark, Inc. ("Guardsmark"). Guardsmark contracted to provide security services to defendant Robert Bosch Corporation ("Bosch") and, from 1985 to 1990, Sanders worked at Bosch's plant in Charleston, South Carolina. While working at the plant, plaintiff manned the telephones in Bosch's security office. Bosch had installed a tape recording device known as a "voice logger," which recorded, 24 hours a day, 7 days a week, all telephone conversations undertaken on some of the telephone lines with extensions in the security office. Plaintiff initiated this suit against Bosch, alleging that Bosch violated her rights under Title III of the Omnibus Crime Control and Safe Streets Act of 1968, known as the Federal Wiretapping Act (the "Act"), codified at 18 U.S.C. Secs. 2510-2521, by virtue of the constant recording, unbeknownst to her, of her telephone conversations. She also claimed that Bosch continued to violate the Act when, even after the voice logger was no longer recording telephone conversations, the device nevertheless, evidently unbeknownst to anyone, continued to transmit ambient noise from the guards' office.

The district court found that Bosch's constant recording of plaintiff's telephone conversations did not fall within the relevant business-use exception and therefore constituted a violation of the Act. Defendant appeals from this determination. The district court also found that the Act was not violated when, although Bosch believed it had shut the voice logger off, the device continued to transmit ambient noise from the guards' office. Plaintiff appeals from this determination, and also appeals the district court's jury instruction as to punitive damages. We affirm the judgment below in all respects.

I.

Bosch explains its decision to install the voice logger as a response to bomb threats which the company claims to have previously received. In 1988, Bosch constructed a new administration building which included all-new telecommunications equipment. This equipment included two "attendant consoles" provided by BellSouth. The attendant console must be manned by an operator who transfers incoming calls to the appropriate extensions. The console includes a handset which is donned by the individual manning the console when an incoming call is received. BellSouth installed one of the consoles in the security office and the other in the reception office.

As a security precaution, Bosch purchased and installed an eight-channel voice logger to record telephone activity on the main public access telephone lines into the plant. The voice logger was connected to telephone extensions which BellSouth installed in Bosch's security control room (known as the "penthouse"). The voice logger commenced operation in January of 1989.

The voice logger was an eight-channel reel-to-reel tape recorder. Seven of the eight channels were available to connect to telephone lines. The eighth channel continuously indexed the time and date, so as to allow easy access of particular conversations. All eight channels were recorded simultaneously on 24-hour tape reels which were changed daily. One reel was designated for each day of the week; every week each reel was reused, meaning that the recordings from the previous week were erased weekly.1

Of the hundreds of telephone numbers assigned to Bosch's plant, any of which can be reached by direct-dial from outside of the plant, Bosch's officers identified what they believed to be the seven numbers most likely to receive incoming security threats: two channels were assigned to the main plant number, one at each of two extensions; two channels were assigned to each of two numbers assigned to the two security gates at the plant; and three channels were assigned to three telephone lines in the security office which were connected through the attendant console in that office.2

As noted above, Guardsmark contracted with Bosch to provide security services. Bosch officials advised Guardsmark supervisory personnel of the existence of the voice logger, but did not so advise the other security officers assigned to Bosch's plant until after the voice logger had been shut down and removed. All of the monitored lines were manned by Guardsmark security personnel.

Phillip Schaffner, a Bosch official in charge of security, and St. Clair, another Bosch security official who reported to Schaffner, both testified that, during the period that the voice logger was activated, no threatening phone calls were received, and that, consequently, they never listened to any full recordings of calls made by the voice logger. At most, they listened to portions of calls during routine maintenance.3

During the summer of 1989, Guardsmark supervisory personnel expressed their displeasure over Bosch's use of the voice logger. Bosch decided to discontinue use of the voice logger and, in late July of 1989, the equipment was ordered shut down.

In March of 1990, a Guardsmark employee notified Schaffner that there was a live microphone in the security office that could pick up conversations in the office and transmit them to the voice logger in the penthouse. Schaffner testified that he was unaware of any such capability but undertook an investigation, which revealed that, while the voice logger was indeed switched "off" and while no tape was loaded on the reels provided, when Schaffner turned up the voice logger's volume control, he was able to hear certain ambient noise from the security office. Subsequent investigation revealed that this resulted from a design anomaly of the attendant console. Even when no calls were being handled at the attendant console, the handset microphone picked up nearby noise; in particular, the handset microphone picked up voices, both on the telephone and otherwise, spoken in close proximity to the handset.

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