Dzinglski v. Weirton Steel Corp.

445 S.E.2d 219, 191 W. Va. 278, 10 I.E.R. Cas. (BNA) 472, 1994 W. Va. LEXIS 63
CourtWest Virginia Supreme Court
DecidedMay 26, 1994
Docket21888
StatusPublished
Cited by74 cases

This text of 445 S.E.2d 219 (Dzinglski v. Weirton Steel Corp.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dzinglski v. Weirton Steel Corp., 445 S.E.2d 219, 191 W. Va. 278, 10 I.E.R. Cas. (BNA) 472, 1994 W. Va. LEXIS 63 (W. Va. 1994).

Opinion

NEELY, Justice.

This is an appeal from a jury verdict and judgment in the Circuit Court of Brooke County against Weirton Steel Corporation [‘Weirton Steel”] in the amount of $500,000 for the tort of outrage and intentional infliction of emotional distress. The judgment was based upon the circumstances surrounding an investigation by Weirton Steel into alleged improprieties on the part of the plaintiff below, Andrew P. Dzinglski, while he-worked as a management employee at Weir-ton Steel in 1984.

Mr. Dzinglski had worked at National Steel Corporation for 25 years when National Steel became Weirton Steel through an Employee Stock Ownership Plan [“ESOP”] in January 1984. Under the ESOP, all ownership of Weirton Steel was vested in its employees, who took substantial reductions in pay and benefits in exchange for company stock.

In the course of the negotiations surrounding the creation of the ESOP, the Independent Steelworkers Union, which represented company employees, related to management several cost-saving measures the Union would seek to implement should the ESOP be concluded successfully. These measures comprehended the removal of both management employees deemed detrimental to the new ESOP company as well as the elimination of various outside contractors whose services, in the Union’s opinion, could be performed less expensively by Weirton Steel employees.

Accordingly, upon completion of the ESOP in January 1984, Valley Systems, Inc., an industrial cleaning company that had performed various cleaning jobs at Weirton Steel’s facilities, was discontinued as an outside contractor, Weirton Steel opting to use its own employees for the same tasks. At about the same time, Richard McKittrick, Weirton Steel’s General Supervisor of Plant Security, received a series of anonymous telephone calls implicating the plaintiff below, Mr. Dzinglski, in taking kickbacks from Valley Systems. Mr. Dzinglski, as general foreman of the Strip Steel labor gang, had had daily dealings with Valley Systems, approving invoices for work performed and purchases made by Valley Systems.

Eventually, the anonymous caller identified himself as Tim Lawson; a salaried foreman who had worked under Mr. Dzinglski in the Strip Steel Department. According to Mr. Lawson, while Weirton Steel’s contract with Valley Systems required Weirton Steel to pay an hourly charge for laborers, Mr. Dzinglski frequently approved payment for salaried supervisory employees who performed no actual work at Weirton Steel. Mr. Lawson also accused Mr. Dzinglski of accepting gratuities in the form of food, fixtures, meals and travel from Valley Systems and of allowing Valley Systems to use Weirton Steel’s own supplies and equipment to perform work. To corroborate these charges, Mr. Lawson named two former Valley Systems employees, Charles Fraizer and William Baxter.

*282 Mr. McKittrick thereupon met with Mr. Lawson and William Doepken, Weirton Steel’s Vice President for Legal and Public Affairs. Having been apprised of Mr. Lawson’s accusations, Mr. Doepken deemed the charges against Mr. Dzinglski sufficiently serious to warrant an investigation. Mr. Doepken was appointed to head the investigation.

When, in late May 1984, Mr. Doepken and Mr. McKittrick confronted Mr. Dzinglski with the substance of Mr. Lawson’s allegations, Mr. Dzinglski denied any wrongdoing. Mr. Doepken then informed Mr. Dzinglski that Weirton Steel had decided to suspend Mr. Dzinglski with pay while the charges were investigated. Mr. Dzinglski’s suspension was consistent with the Weirton Steel policy that whenever allegations were raised about management employees, the employee would be suspended with pay during the investigation.

As part of the investigation, Weirton Steel’s internal audit department combed through Weirton Steel’s own records in order to probe the charges of overbilling and phantom employees. Weirton Steel staunchly maintains that no one, other than those persons directly involved in the investigation, was informed by Weirton Steel of Mr. Lawson’s accusations.

Mr. McKittrick interviewed Mr. Baxter and Mr. Frazier, the Valley Systems employees identified by Mr. Lawson as corroborative witnesses, taking notes of his interviews for the preparation of internal memoranda. According to Mr. McKittrick, these memo-randa were routed to only four people: Mr. Doepken, Robert Loughhead, president of Weirton Steel and Mr. McKittrick’s immediate supervisors, William Wetzel and Alan Moran.

With regard to gratuities allegedly taken by Mr. Dzinglski from Valley Systems, Mr. Baxter, general superintendent and office' manager at Valley Systems, testified that on instructions from the CEO and owner of Valley Systems, Eugene R. Valentine, Mr. Baxter: (1) picked up an order of 50 pounds of bacon and took it to Mr. Dzinglski; (2) picked up a bathroom vanity and delivered it to Mrs. Dzinglski; (3) picked up bolt cutters and delivered them to Mr. Dzinglski for the purpose of cleaning out lockers of former Weirton employees; (4) purchased a camera for Mr. Dzinglski and delivered it to Mr. Dzinglski; (5) doctored invoices to cover the cost of repairs for a Valley System Kubota machine damaged at the Weirton Steel mill by Weirton Steel; (6) periodically took different Weirton employees to lunch on Valley System’s tab; and (7) on one occasion provided Mr. Dzinglski access to a motel room at a local Holiday Inn paid for by Valley Systems. Mr. Baxter also testified that Mr. Dzinglski allowed Valley Systems to use supplies from Weirton Steel’s storeroom in the performance of their jobs.

Mr. Fraizer, who worked as a supervisor and performed various administrative duties at Valley Systems, stated that on instructions from Mr. Valentine, Mr. Fraizer delivered a camera to Mr. Dzinglski. Mr. Fraizer also revealed that Valley Systems periodically took Weirton Steel storeroom supplies and used them in the performance of their jobs. According to Mr. Frazier, Mr. Valentine occasionally took Mr. Dzinglski out to lunch.

Mr. Valentine did not deny giving various gratuities to Mr. Dzinglski, including steaks, 50 pounds of bacon, various meals and cases of wine and beer, but claimed that it was common business practice for a subcontractor to give such gifts to the contractor to maintain good relations. And although admitting he purchased a camera for Mr. Dzinglski, Mr. Valentine maintained that the camera was for work-related purposes only. As for the bathroom vanity, Mr. Valentine contended he bought it for the purpose of remodelling the bathroom in the trailer that Valley Systems used as an office on the Weirton premises.

In July 1984, Mr. Doepken met with Mr. Dzinglski and reviewed the substance of all allegations against Mr. Dzinglski. Mr. Dzinglski flatly denied any wrongdoing. Although some of the allegations made by Mr. Lawson had been confirmed by Mr. Baxter and Mr. Fraizer and some evidence of irregularities in Valley Systems billing was uncovered by Weirton Steel’s auditors, the accusations levelled by Mr. Lawson were never fully substantiated nor was there evidence of criminal wrongdoing by Mr. Dzinglski. *283 Nonetheless, the mere allegations of improprieties against a management employee raised concerns on the part of Weirton Steel about Mr. Dzinglski’s ability to function effectively as a labor manager. On 31 October 1984, Mr. Dzinglski was discharged honorably.

Mr.

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Bluebook (online)
445 S.E.2d 219, 191 W. Va. 278, 10 I.E.R. Cas. (BNA) 472, 1994 W. Va. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dzinglski-v-weirton-steel-corp-wva-1994.