Bradley v. Hubbard Broadcasting, Inc.

471 N.W.2d 670, 1991 Minn. App. LEXIS 541, 60 Fair Empl. Prac. Cas. (BNA) 1507, 1991 WL 90815
CourtCourt of Appeals of Minnesota
DecidedJune 4, 1991
DocketC9-90-1911
StatusPublished
Cited by19 cases

This text of 471 N.W.2d 670 (Bradley v. Hubbard Broadcasting, Inc.) 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
Bradley v. Hubbard Broadcasting, Inc., 471 N.W.2d 670, 1991 Minn. App. LEXIS 541, 60 Fair Empl. Prac. Cas. (BNA) 1507, 1991 WL 90815 (Mich. Ct. App. 1991).

Opinions

OPINION

LANSING, Judge.

In this employment defamation and reprisal discrimination action, the jury and the trial court awarded compensatory and punitive damages and the trial court assessed a civil penalty. The employer challenges the jury’s basis for finding defamation and an implied covenant of good faith and fair dealing, the trial court’s finding of reprisal discrimination, and the amount and propriety of compensatory and punitive damages. We affirm all issues of liability except breach of the implied covenant, but modify the punitive damages award.

FACTS

After being discharged, Wendy Bradley sued her former employer, Hubbard Broadcasting, Inc. (HBI), alleging defamation; breach of an implied covenant of good faith and fair dealing; promissory estoppel; and sex, marital status, and reprisal discrimination. Her first three claims were tried to a jury, which found that Bradley was defamed by her supervisor’s false, malicious statements about the incident leading to Bradley’s discharge.

The incident began when Bradley noticed scraps of paper with her name on them while cleaning a table near a photocopier. Pieced together, the scraps formed a memo outlining her supervisor’s intent to replace Bradley and noting Bradley’s involvement in two disputes between HBI and other employees. Bradley showed the memo to a coworker.

When the supervisor learned of Bradley’s actions, she fired Bradley and sent a memo to the finance department claiming that “Ms. Bradley retrieved a piece of personal correspondence from my waste bin.” [674]*674Upper-level managers were told that Bradley was discharged for “gross misconduct.”

The jury also found that Bradley’s discharge breached an implied covenant of good faith and fair dealing in her employment contract but rejected the promissory estoppel claim. The jury awarded Bradley $12,000 in compensatory damages and $500,000 in punitive damages.

Bradley’s claims of sex, marital status and reprisal discrimination were tried simultaneously to the trial court. Before her discharge, Bradley participated in investigations of two legal disputes between HBI and other employees. After cooperating with the Minnesota Human Rights Department’s investigation of a coworker’s allegations of discrimination and sexual harassment, Bradley was denied a promotion and encountered communication problems with her coworkers. She requested and received a transfer to another department, where she later participated in an investigation of a job-posting dispute. Bradley’s supervisor encouraged her to leave her job, but Bradley refused.

The court concluded that Bradley had been subjected to reprisal discrimination but denied her other claims. After reducing the duplicative $12,000 jury award of compensatory damages to $1,000, the court awarded compensatory damages totalling $46,180.80, including treble damages for lost earnings ($34,560), lost insurance benefits ($1,620), and emotional distress ($10,-000). The court also assessed punitive damages of $6,000 and a $200,000 civil penalty against HBI.1

ISSUES

1. Does the evidence support a finding of defamation by an employer’s false, malicious statements that an employee retrieved personal correspondence from a supervisor’s wastebasket and was fired for gross misconduct?

2. Was the evidence sufficient as a matter of law to imply a covenant of good faith and fair dealing into an at-will employment contract?

3. Did misconduct of counsel and admission of testimony on a sexual harassment investigation require a new trial?

4. Was evidence of a continued pattern of adverse employment actions sufficient to support a finding of reprisal discrimination?

5. Were the damages awarded by the trial court and jury contrary to the evidence or excessive as a matter of law?

ANALYSIS

I

Defamation actions arising from communications made in a private employment setting are analyzed under Minnesota common law, which makes no distinction between statements of “fact” and “opinion.” See Weissman v. Sri Lanka Curry House, Inc., 469 N.W.2d 471 (Minn.App. 1991); see also Milkovich v. Lorain Journal Co., — U.S.-,-, 110 S.Ct. 2695, 2705, 111 L.Ed.2d 1 (1990) (rejecting an absolute constitutional privilege for statements of “opinion”). Accusations that Bradley retrieved personal correspondence from a supervisor’s wastebasket and was fired for gross misconduct were sufficiently harmful to Bradley’s reputation to support a defamation action. See Weissman, 469 N.W.2d at 473.

The evidence supports the jury’s findings that: (1) the supervisor’s statements were communicated to someone other than Bradley; (2) the statements were false; and (3) the statements tended to harm Bradley’s reputation. See Lewis v. Equitable Life Assurance Soc’y, 389 N.W.2d 876, 886 (Minn.1986). We cannot conclude that the supervisor’s inconsistent testimony was more credible than Bradley’s testimony. See Wirig v. Kinney Shoe Cory., 448 N.W.2d 526, 533 (Minn.App.1989) (the jury must assess the credibility of the witnesses and assign the weight to be given to their testimony), [675]*675rev’d on other grounds, (Minn.1990). 461 N.W.2d 374

Even if revealing the contents of the memo to a coworker constituted gross misconduct, see Henderson v. Huecker, 744 F.2d 640, 644 (8th Cir.1984), the evidence did not compel the finding that the statement that Bradley was fired for gross misconduct was true. Dissemination of the memo was not the sole reason given for Bradley’s discharge. The supervisor’s memo itself provides an alternative basis:

Secretary: Wendy Bradley, not a good asset to the department. Single mother of two, she will be a little tough to eliminate. Wendy has been in the middle of two legal disputes within the company regarding the termination, etc., of other employees. I am building the appropriate file and [would] like to replace her with a top notch secretary, possibly one from [within the] building.

The supervisor’s expressed intent to replace Bradley after “building the appropriate file” and emphasis on Bradley’s participation in investigations of other employee’s complaints provides evidence from which the jury could readily conclude that Bradley was terminated for reasons other than gross misconduct.

Although an employer’s nonmali-cious communications are conditionally privileged, see Stuempges v. Parke, Davis & Co., 297 N.W.2d 252, 256-57 (Minn.1980), the jury found that the supervisor’s statements were made with actual malice, defeating the privilege. After Bradley declined to resign voluntarily, the supervisor became noncommunicative and, according to her memo, began “building the appropriate file” to replace Bradley. The supervisor, without investigation, see Wirig, 461 N.W.2d at 380, accused Bradley of retrieving the memo from her wastebasket and caused the allegation of gross misconduct to circulate as office gossip.

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Bluebook (online)
471 N.W.2d 670, 1991 Minn. App. LEXIS 541, 60 Fair Empl. Prac. Cas. (BNA) 1507, 1991 WL 90815, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bradley-v-hubbard-broadcasting-inc-minnctapp-1991.