Bliss v. Bobich

971 P.2d 141, 1998 Alas. LEXIS 158, 1998 WL 774672
CourtAlaska Supreme Court
DecidedNovember 6, 1998
DocketS-7477, S-7517, S-7518
StatusPublished
Cited by16 cases

This text of 971 P.2d 141 (Bliss v. Bobich) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bliss v. Bobich, 971 P.2d 141, 1998 Alas. LEXIS 158, 1998 WL 774672 (Ala. 1998).

Opinion

OPINION

BRYNER, Justice.

Patrick and Barbara Bliss, former employees at a storage facility owned by Matthew Bobich, sued Bobich for overtime violations and retaliatory harassment and discharge. The Blisses appeal, and Bobich cross-appeals. The parties raise numerous issues. As we conclude that the superior court erred in calculating Bobich’s attorney’s fees award, we remand on that issue. In all other aspects, we affirm.

I. FACTS AND PROCEEDINGS

Bobich, a partner in Dimond Mini Storage in Anchorage, hired the Blisses as managers of the storage facility on August 15, 1988. The Blisses were hired to work for the storage facility’s “gate hours” — the hours when it was open. These were initially eleven hours per day; in February 1989, they were reduced to ten hours per day. Bobich treated the Blisses as administrative employees who were exempt from overtime compensation. Each of the Blisses was initially paid a monthly salary of $1100. In October 1989, each received a salary increase to $1300 a month; in May 1990, each received an increase to $1400 a month.

In 1988, the same year that the Blisses began working for Bobich, Sharon and Jimmie Stewart, former managers at Dimond Mini Storage, sued Bobich and his business partners (collectively, Bobich) for unpaid overtime wages under the Alaska Wage and Hour Act. During the 1990 trial of the Stew-arts’ case, Bobich contended that, because the storage facility employed fewer than four workers, the AWHA’s overtime compensation provisions did not apply to its employees. In December 1990, the jury rejected this defense and found that Bobich owed the Stewarts overtime wages. In 1992, this court sustained that verdict. See Bobich v. Stewart, 843 P.2d 1232 (Alaska 1992).

In June 1991, in response to the jury verdict in the Stewarts’ case, Bobich calculated the overtime that the Blisses had accrued during their employment since August 1988. According to Bobich’s calculations, he owed Patrick $2004.50 in overtime wages, and Barbara owed him $146.48. On advice from his attorneys, Bobich also began to pay the Blisses on an hourly basis.

Also in June, Alvie and Wanda Hughes, former employees at Publix Storage, another storage facility in which Bobich had a partnership interest, sued Bobich for unpaid overtime wages. On September 18, the Hugheses moved to add the Blisses as plaintiffs in their suit. Bobich learned of the Blisses’ claim in late September. On January 15, 1992, he fired them.

The Blisses amended their complaint to add claims of retaliatory discharge. Bobich denied the claims and filed several counterclaims, alleging that the Blisses had damaged his business and reputation, converted business property, and breached their duty of good faith and fair dealing. The parties eventually stipulated to dismiss these counterclaims.

In August 1992, the superior court dismissed the Hugheses’ suit due to willful violations of its discovery orders. We reversed the dismissal in 1994 and remanded the Hugheses’ case. See Hughes v. Bobich, 875 P.2d 749, 756 (Alaska 1994). By then the Blisses’ case had reached an advanced stage of litigation; the superior court declined to reconsolidate the suits.

In 1994, the court allowed the Blisses to file an amended complaint to add as additional defendants other businesses owned by Bo-bieh as well as Bobich’s partners in those other businesses. The Blisses’ final amended *144 complaint alleged violations of both the federal Fair Labor Standards Act of 1938 1 and the AWHA. 2 The amended complaint also claimed that Bobich had willfully failed to pay overtime wages and had harassed and discharged the Blisses in retaliation for their exercise of their statutory rights. By adding this claim of willfulness, the Blisses evidently hoped to extend their potential period of recovery for overtime damages. Without proof of willfulness, both the AWHA and the FLSA allowed the Blisses to recover overtime damages only for the two years immediately preceding the filing of their overtime claims. See 29 U.S.C. § 255 (1985); AS 23.10.130. But upon proof of a willful failure to pay overtime, the FLSA allows overtime damages reaching three years back from the time of filing. See 29 U.S.C. § 255(a).

Bobich made offers of judgment to the Blisses on their overtime claims in 1992 and again in 1995. They rejected the offers. The Blisses’ jury trial began on April 5, 1995, before Superior Court Judge Brian C. Shorten. At the close of the evidence, the court directed verdicts for the Blisses, ruling that they were not exempt from overtime wages and that their salaries should be considered compensation for forty hours of work per week. The court also directed a verdict against the Blisses on their claim that Bo-bich’s failure to pay overtime was willful.

These rulings had the effect of holding Bobich liable for overtime wages but limiting the Blisses’ overtime claims to the two-year time limit permitted under the AWHA; it thereby precluded the Blisses from seeking the third year of overtime damages that they would have been permitted under the FLSA’s provision governing willful overtime violations. The parties agreed that the only remaining issue on the Blisses’ overtime claims was the precise amount of the unpaid wages that Bobich owed; because the parties agreed on the total number of hours that the Blisses had actually worked, they agreed that the remaining determination of damages involved a mathematical calculation that the court could perform without the jury.

This left only the Blisses’ retaliatory discharge claims for the jury. The jury failed to reach a verdict and was excused on April 21, 1995. A second jury trial began in July 1995, culminating in a verdict that Bobich had not harassed or fired the Blisses in retaliation for their overtime claims.

After calculating the Blisses’ unpaid overtime damages, the court awarded attorney’s fees to the Blisses on their overtime claims and to Bobich on the retaliatory discharge claims. It entered a net judgment for the Blisses.

The Blisses appeal; Bobich cross-appeals.

II. THE BLISSES’ APPEAL

A. The Court Did Not Abuse Its Discretion in Excluding Evidence of Bo-bich’s Prior Overtime Violations and of Bobich’s Dealings with His Attorneys.

Shortly before trial, Bobich filed a motion for a protective order, seeking to bar the Blisses from introducing evidence that Bo-bieh had been involved in prior overtime violation cases and that he had retained several different attorneys in those cases.

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Bluebook (online)
971 P.2d 141, 1998 Alas. LEXIS 158, 1998 WL 774672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bliss-v-bobich-alaska-1998.