DiBiasio v. Brown & Sharpe Manufacturing Co.

525 A.2d 489, 1987 R.I. LEXIS 480
CourtSupreme Court of Rhode Island
DecidedMay 11, 1987
Docket85-129-Appeal
StatusPublished
Cited by19 cases

This text of 525 A.2d 489 (DiBiasio v. Brown & Sharpe Manufacturing Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DiBiasio v. Brown & Sharpe Manufacturing Co., 525 A.2d 489, 1987 R.I. LEXIS 480 (R.I. 1987).

Opinion

OPINION

SHEA, Justice.

This matter is before the Supreme Court on appeal by the defendants from denial of their motions for directed verdicts and motions for new trial. We affirm in part and reverse in part.

The action was based on allegations of defamation and tortious interference with a. contractual relationship. The amended complaint alleged that Charles C. Baldelli, Brown & Sharpe Manufacturing Company, and Andrew T. Mignanelli had made defamatory statements about the plaintiff John J. DiBiasio (plaintiff), that plaintiff had been wrongfully discharged by Brown & Sharpe, and that Mignanelli had tortiously interfered with plaintiff’s contractual relationship with Brown & Sharpe.

The evidence presented established that Baldelli worked in the labor relations department of Brown & Sharpe. The plaintiff filed a job application with Brown & Sharpe in which he indicated he had been laid off by a previous employer, Andy’s Texaco, for lack of work. On receiving an application for employment, as was its practice, Brown & Sharpe mailed a reference card to Andy’s Texaco. The reply indicated that plaintiff was “untrustworthy and unreliable” and “not to be trusted to handle money or material.” By the time the card was returned, plaintiff had already begun working at Brown & Sharpe as a probationary employee.

Baldelli instructed a clerk in his department to call the owner of Andy’s Texaco and verify the information on the returned reference card. That clerk later advised Baldelli that Mignanelli, the proprietor, had confirmed the information and added that money had been stolen by plaintiff. Bal-delli then reviewed the information with a coworker, and a decision was made to terminate plaintiff because he had falsified his application for employment.

A meeting was set up between plaintiff; Baldelli; plaintiff's supervisor, William Sharpe; and Joseph Savage, another supervisor, who did not work with plaintiff. The plaintiff was told he was being fired because he had falsified his application. Bal-delli passed the reference card to Sharpe and Savage. He said that there was unfavorable information on the card of a kind plaintiff would not like to hear, but plaintiff said he did want to hear it and Baldelli read him the comments. The plaintiff did not respond.

When this meeting occurred, Baldelli had no serious doubts about the information received from the prior employer. At the conclusion of the meeting, Sharpe was directed to follow plaintiff to his locker and to accompany him to the gate, where he should retrieve plaintiff’s employment badge.

*491 Testimony at trial indicated that Browne & Sharpe’s routine procedure requires that an employee’s supervisor and department manager be present at a disciplinary meeting with an employee. Baldelli suggested that Savage was in attendance at the meeting because plaintiff’s department manager must have been busy.

At trial, plaintiff denied the accusation that he was fired by Mignanelli for stealing money and insisted he had been laid off because business had slowed down during the winter months. His testimony corroborated Baldelli’s description of his application to and his brief employment with Brown & Sharpe and his termination. He said that after he left Brown & Sharpe, the State Department of Employment Security (department) denied him unemployment-compensation benefits for the reasons for which he had been terminated. However, after investigation of plaintiff’s termination from Andy’s Texaco, the department reversed itself and awarded him unemployment benefits.

In his testimony Mignanelli admitted to his conversation with the clerk from Brown & Sharpe who had called to verify the information. He testified that when he received the card, it remained on his desk for “a week to ten days.” Only after he got a call from Brown & Sharpe did he fill it out and return it. At first he said he did not recall putting any derogatory information on the card but later acknowledged that he had written on the card when it was shown to him. He also acknowledged that during a deposition he denied any knowledge that plaintiff had stolen money from him and at that time stated that plaintiff had been laid off for lack of work.

All defendants moved for directed verdicts at the close of plaintiff’s case and at the close of all the evidence. These motions were denied.

The jury found for defendants Brown & Sharpe and Baldelli on the wrongful-discharge count. It found for plaintiff on the defamation count, awarding both compensatory and punitive damages against Brown & Sharpe and Mignanelli and punitive damages ^jgainst Baldelli. The jury also awarded plaintiff both compensatory and punitive damages against Mignanelli for tortious interference with the contract. New-trial motions filed by defendants on all counts were denied.

The first issue we shall address concerns the question of conditional privilege as it might apply to Baldelli’s statements made in front of Sharpe and Savage during the meeting in which plaintiff was terminated. Brown & Sharpe’s and Baldelli’s activities, interests, and status in these proceedings are congruent; therefore, our resolution of this issue applies to both.

Whether a communication “by an employer to his employees concerning a fellow employee’s misconduct is qualifiedly privileged will turn on the particular fact situation of each case. The determination of whether on those facts the privilege exists is exclusively legal and is for the court, and not for the jury.” Ponticelli v. Mine Safety Appliance Co., 104 R.I. 549, 555, 247 A.2d 303, 307 (1968); see also Prosser & Keeton, The Law of Torts, § 115 at 835 (5th ed. 1984). In Ponticelli this court stated that the proper test is “whether in order to protect a common interest an employer either correctly or reasonably believes that a plaintiff’s co-workers are entitled to be advised of the nature of his misconduct.” 104 R.I. at 555, 247 A.2d at 307 (citing 3 Restatement, Torts § 596).

It seems clear that in this instance Brown & Sharpe had a strong interest in having supervisory personnel present at a meeting in which an employee was to be terminated. Supervisors have an interest in knowing that employees under their supervision are being terminated for legitimate reasons. Likewise, management has an interest in keeping its supervisors informed so that they can assist in maintaining good company morale. Communications between a personnel administrator and an employee’s immediate supervisor about the reasons for termination further those interests and therefore fall within the scope of the qualified privilege. Furthermore, the presence of a department manager, or a designee in his absence, does not appear to be an unreasonable practice. *492 Consequently, we find that the trial justice was in error when he found that Baldelli’s statements about plaintiff's falsification of his application were not qualifiedly privileged.

This situation is no different in principle from that in Swanson v. Speidel Corp., 110 R.I.

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Bluebook (online)
525 A.2d 489, 1987 R.I. LEXIS 480, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dibiasio-v-brown-sharpe-manufacturing-co-ri-1987.