Creel v. Davis

544 So. 2d 145, 1989 WL 52060
CourtSupreme Court of Alabama
DecidedApril 7, 1989
Docket87-579
StatusPublished
Cited by7 cases

This text of 544 So. 2d 145 (Creel v. Davis) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Creel v. Davis, 544 So. 2d 145, 1989 WL 52060 (Ala. 1989).

Opinion

544 So.2d 145 (1989)

William T. CREEL
v.
JoAnne C. DAVIS.

87-579.

Supreme Court of Alabama.

April 7, 1989.

*146 Charles W. Woodham, Abbeville, for appellant.

Douglas M. Bates, Dothan, for appellee.

PER CURIAM.

This appeal is from a judgment on a verdict awarding the plaintiff $75,000 on her claim based on interference with business or contractual relations. JoAnne C. Davis brought this action against Dr. William T. Creel, alleging that Creel wrongfully interfered with her employment as a respiratory therapist with Rehabilitative Health Services, Inc. Creel argues that the judgment should be reversed because he was not a stranger to the contract and because there was no evidence that he acted with malice.

This Court reviewed the law of intentional interference with contractual relations and the law of intentional interference with business relations in Gross v. Lowder Realty Better Homes & Gardens, 494 So.2d 590 (Ala.1986), and adopted a single rule to encompass both causes of action:

"We hold that this tort of intentional interference with business or contractual relations, to be actionable, requires:
"(1) The existence of a contract or business relation;
"(2) Defendant's knowledge of the contract or business relation;
"(3) Intentional interference by the defendant with the contract or business relation;

"(4) Absence of justification for the defendant's interference;3 and

"(5) Damage to the plaintiff as a result of defendant's interference.

"[n.] 3. We retain the principle that justification is an affirmative defense to be pleaded and proved by the defendant."

Id., at 597. See also Lowder Realty, Inc. v. Odom, 495 So.2d 23 (Ala.1986).

This Court has held that "a party to a contract cannot, as a matter of law, be liable for tortious interference with the contract," Lolley v. Howell, 504 So.2d 253, 255 (Ala.1987), and that "a principal's agent or employee, who acts for or on behalf of the principal, is a `party' to that principal's contractual and business relations and not a [stranger] thereto," Harrell v. Reynolds Metals Co., 495 So.2d 1381, 1388 (Ala.1986). Creel argues that he and Davis were ultimately employed by the same corporation and that, thus, he was not a stranger as to her employment contract and therefore cannot be liable for tortious interference with it unless it is shown that he acted outside the scope of his authority and with malice, citing Hickman *147 v. Winston County Hospital Board, 508 So.2d 237 (Ala.1987).

The following facts existed at the time of the actions made the basis of this suit. Creel was chief of staff at Henry County Hospital, in Abbeville, Alabama. Davis worked at Clay County Hospital in Fort Gaines, Georgia, which is just across the Georgia line from Henry County, Alabama. Rehabilitative Health Services, Inc. ("RHS"), Davis's employer, operated the cardiopulmonary department at Clay County Hospital under a contract to perform those services, and Davis worked as director of that department. Health Care Management Corporation ("HCMC"), a Georgia corporation, owned Clay County Hospital and operated Henry County Hospital under a lease from the Henry County Hospital Authority. Both RHS and HCMC were owned by Basic American Medical, Inc. ("BAMI"), an Illinois corporation.

RHS provided respiratory therapy services to both Henry County and Clay County Hospitals. William E. Daniel, an employee of HCMC, served as administrator of both hospitals. Davis's termination arose from conversations between Creel and Daniel that resulted in Daniel's telephoning Ralph Shokey, who was RHS's district manager and Davis's immediate supervisor. Shokey then told Davis she had a choice between termination and transfer to another location; she said she was unable to take a transfer, so she was terminated.[1] She testified that Shokey told her she was being terminated at Creel's request.

Creel argues that, because both RHS and HCMC were owned by BAMI, or because both hospitals were operated by HCMC, he and Davis were parties to a single contractual or business relation and, as a result, that she could not sue him for interference with that relation. Aside from the question of whether Dr. Creel, as chief of staff of Henry County Hospital, is an agent or employee of HCMC, cf. Stewart v. Bay Minette Infirmary, 501 So.2d 441 (Ala.1986), this argument overlooks the function of the separate corporate entities. Certainly, if BAMI were sued for the negligence of either Creel or Davis, it would deny any respondeat superior liability. Daniel testified that he did not have authority to fire Davis; although his conveyance to Shokey of Creel's concerns about Davis obviously carried great weight, it remains a fact that Davis's employment with RHS was not a contract to which Creel was a party.

Nor was HCMC a party to Davis's contract of employment with RHS, so Creel could not have been acting as a party to such a contract within the meaning of the rule quoted above from Harrell v. Reynolds Metals Co. Creel based much of his defense and much of his argument here on the possibility that Davis would have come to work at Henry County Hospital under reorganization and consolidation efforts being made at the time, and on his statements to Daniel that he would not be comfortable working professionally with Davis. This, at most, would have justified Creel in telling Daniel to tell Shokey not to send Davis to Henry County Hospital. Daniel testified that the decision on whether Davis came to work at Henry County Hospital would have been Shokey's. Because Creel's instructions to Daniel went beyond what was called for by any business relation to which he and Davis were parties, the trial court did not err in submitting the claim to the jury.

Creel argues the alleged absence of proof of malice[2] on two asserted issues. First, he says that agents or employees of a single employer can be liable to their fellow agents or employees for tortious *148 interference with the plaintiff's employment relation only if the defendant acted outside the scope of his authority and with malice, citing Hickman, Lolley, and Harrell, supra. Because of our holding that Creel was not a party to Davis's employment relation with RHS, this argument presents nothing to be addressed.

Second, Creel argues that the malice element of Hickman should be incorporated into the third element set out in Gross for cases brought against strangers to the business or contractual relation. Under such a redefinition of the tort, it would be "malicious interference" instead of "intentional interference." This argument amounts to an attempt to place the burden of proving lack of justification on the plaintiff. The Court in Gross made the decision to leave the burden of justification on the defendant, and we see no reason to change that decision.

Thus, Creel's arguments that he was not a stranger as to the contract and that a malice element should be incorporated into the tort present no reversible error. Outside of those arguments, Creel does not argue that there was insufficient evidence to submit the claim to the jury, and we do not see any basis for such an argument. Therefore, the judgment of the trial court is due to be, and it hereby is, affirmed.

AFFIRMED.

HORNSBY, C.J., and ALMON, SHORES and KENNEDY, JJ., concur.

MADDOX, J., concurs specially.

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Bluebook (online)
544 So. 2d 145, 1989 WL 52060, Counsel Stack Legal Research, https://law.counselstack.com/opinion/creel-v-davis-ala-1989.