Dudley Wardlaw, Plaintiff-Appellee-Cross-Appellant v. Inland Container Corporation, Anheuser-Busch, Inc., Defendant-Appellant-Cross-Appellee

76 F.3d 1372, 11 I.E.R. Cas. (BNA) 873, 1996 U.S. App. LEXIS 4503, 1996 WL 82625
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 13, 1996
Docket94-10948
StatusPublished
Cited by15 cases

This text of 76 F.3d 1372 (Dudley Wardlaw, Plaintiff-Appellee-Cross-Appellant v. Inland Container Corporation, Anheuser-Busch, Inc., Defendant-Appellant-Cross-Appellee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dudley Wardlaw, Plaintiff-Appellee-Cross-Appellant v. Inland Container Corporation, Anheuser-Busch, Inc., Defendant-Appellant-Cross-Appellee, 76 F.3d 1372, 11 I.E.R. Cas. (BNA) 873, 1996 U.S. App. LEXIS 4503, 1996 WL 82625 (5th Cir. 1996).

Opinion

BENAVIDES, Circuit Judge:

Defendant-appellant/cross-appellee Anheu-ser-Busch (“Anheuser”) appeals from a jury verdict awarding plaintiff-appellee/cross-ap-pellant Dudley Wardlaw (“Wardlaw”) damages for tortious interference with his employment. Wardlaw cross-appeals, arguing that the district court erred in granting An-heuser judgment as a matter of law on the issue of punitive damages. We reverse the district court’s denial of Anheuser’s motion for judgment as a matter of law, and affirm its judgment on the issue of punitive damages.

I. Background

Wardlaw was employed as a National Account Service Executive for Inland Container Corp. (“Inland”), which manufactures corrugated paper products. Anheuser was one of Inland’s customers. Wardlaw successfully developed a quality and service program for Anheuser. As a result of his work on the Anheuser account, Wardlaw had access to information regarding the volume of Inland’s business with Anheuser.

On January 20, 1990, Wardlaw wrote a letter to Roger Stone of Stone Container Corporation (“Stone”), an Inland competitor, expressing interest in acting as a consultant for Stone. In the letter, Wardlaw described his success with the Anheuser account, including information about the volume of products that Anheuser bought from Inland and the amount of revenues the account was generating. Wardlaw indicated that Stone should call Anheuser to confirm that Ward-law’s efforts had fostered Inland’s growth.

Jim Riley, an employee of Stone, contacted Bob Scheetz, Anheuser’s purchasing' agent for corrugated materials, on April 4, 1990 to determine whether Wardlaw had achieved the results described in his letter. Scheetz requested a copy of the letter, which was faxed the same afternoon. After reviewing the letter, Scheetz realized that Wardlaw was communicating volume and revenue information that Anheuser considered confidential. Scheetz immediately called Ron Dailey, Inland’s sales representative for Anheuser, and expressed his concern over the release of the information. Scheetz did not request that any action be taken against Wardlaw or that the letter be reported to Wardlaw’s supervisors.

Dailey met with Wardlaw later that day and informed him that Anheuser had a copy of the letter. Wardlaw became concerned that the contents of the letter might be divulged to Inland’s management executives because various Inland and Anheuser representatives were planning a golf trip together in the near future. He decided that he should disclose the letter to his supervisor, Steve Raine. After Raine received a copy of the letter, he sent it to Jim Cory, Inland’s *1375 Senior Vice President of Sales and Marketing, who placed Wardlaw on administrative leave pending investigation of his actions.

On April 12, 1990, Wardlaw was terminated for violating Inland’s Anti-Trust Compliance Policy and for offering to use customer contacts he had acquired at Inland to influence major customers to conduct business with Stone. After the termination, Inland called several of its customers, including An-heuser, to inform them that Wardlaw was no longer employed with Inland.

Wardlaw filed suit against Inland, alleging that his termination violated the Age Discrimination in Employment Act and the Employee Retirement Income Security Act. Wardlaw subsequently sued Anheuser, alleging that Anheuser had tortiously interfered with Wardlaw’s employment contract. On August 22, 1992, Wardlaw settled his claims against Inland.

After a jury trial, Wardlaw was awarded $390,000 in actual damages for tortious interference and $1 million in punitive damages. The district court granted Anheuser’s motion for judgment as a matter of law on the punitive damages issue, but denied Anheu-ser’s motion on the actual damages issue and its motion for new trial.

II. Anheuser’s Appeal

Anheuser initially attacks the district court’s denial of its motion for judgment as a matter of law, contending there was no evidence to support the jury’s finding that Anheuser tortiously interfered with Ward-law’s employment contract and the evidence overwhelmingly indicates that Anheuser’s actions were privileged. In reviewing a district court’s disposition of a motion for judgment as a matter of law, this Court applies the same test the district court applied, without any deference to its decision. Little v. Republic Ref. Co., Ltd., 924 F.2d 93, 95 (5th Cir.1991). The applicable test provides:

[T]he Court should consider all of the evidence — not just that evidence which supports the non-mover’s case — but in the light and with all reasonable inferences most favorable to the party opposed to the motion. If the facts and inferences point so strongly and overwhelmingly in favor of one party that the Court believes that reasonable men could not arrive at a contrary verdict, granting of the motions is proper. On the other hand, if there is substantial evidence opposed to the motions, that is, evidence of such quality and weight that reasonable and fair-minded men in the exercise of impartial judgment might reach different conclusions, the motions should be denied....

Boeing Co. v. Shipman, 411 F.2d 365, 374 (5th Cir.1969) (emphasis added). 1 A conflict in substantial evidence must exist to create a jury question. Id. at 375.

To establish a claim for tortious interference, a plaintiff must prove: (1) the existence of a contract subject to interference; (2) willful and intentional interference with that contract; (3) the intentional interference was a proximate cause of plaintiffs damage; and (4) actual damage or loss occurred. Victoria Bank & Trust Co. v. Brady, 811 S.W.2d 931, 939 (Tex.1991). In the instant cause, Anheuser specifically attacks the jury’s findings with respect to the intentional interference and proximate cause elements of Ward-law’s tortious interference claim. Anheuser also complains of the district court’s rejection of its privilege defense.

A. Intent and Proximate Cause

Intentional interference does not require an intent to injure, only that “the actor desires to cause the consequences of his act, or that he believes that the consequences are substantially certain to result from it.” Southwestern Bell Tel. Co. v. John Carlo Tex., Inc., 843 S.W.2d 470, 472 (Tex. 1992) (citing Restatement (Second) of Torts § 8A (1965)). 2 “Substantially certain” re *1376 quires that the interference be “incidental to the actor’s independent purpose and desire but known to him to be a necessary consequence of his action.” Southwestern Bell Tel. Co. v. John Carlo Tex., Inc.,

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76 F.3d 1372, 11 I.E.R. Cas. (BNA) 873, 1996 U.S. App. LEXIS 4503, 1996 WL 82625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dudley-wardlaw-plaintiff-appellee-cross-appellant-v-inland-container-ca5-1996.