Funderburk v. Johnson

935 So. 2d 1084, 2006 WL 771455
CourtCourt of Appeals of Mississippi
DecidedMarch 28, 2006
Docket2004-CA-01446-COA
StatusPublished
Cited by24 cases

This text of 935 So. 2d 1084 (Funderburk v. Johnson) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Funderburk v. Johnson, 935 So. 2d 1084, 2006 WL 771455 (Mich. Ct. App. 2006).

Opinion

935 So.2d 1084 (2006)

Shirley Hodge FUNDERBURK, Appellant
v.
Milton JOHNSON, Individually and in his Capacity as an Officer of Hyde Brothers Lumber Company; Ginger Johnson, Individually and in her Capacity as an Officer of Hyde Brothers Lumber Company; and Hyde Brothers Lumber Company d/b/a True Value Hardware Store, Appellee.

No. 2004-CA-01446-COA.

Court of Appeals of Mississippi.

March 28, 2006.
Rehearing Denied August 8, 2006.

*1090 David G. Hill, Ralph Stewart Guernsey, David L. Minyard, attorneys for appellant.

Amanda McMillan Urbanek, Wilton V. Byars, Robert Michael Tyner, Jr., attorneys for appellees.

Before LEE, P.J., IRVING and CHANDLER, JJ.

CHANDLER, J., for the Court.

¶ 1. Shirley Hodge Funderburk sued her former employer, Hyde Brothers Lumber Company and its owners and officers, Milton Johnson and Ginger Johnson (collectively "Hyde Brothers"). Funderburk asserted several claims arising out of Hyde Brothers' instigation of embezzlement charges against Funderburk. Funderburk appeals from the grant of a directed verdict as to all of her claims.

¶ 2. Funderburk argues that the trial court erred in dismissing her claims because the defendants failed to state specific grounds for their original and renewed motion for a directed verdict as required by Mississippi Rule of Civil Procedure 50. Funderburk further argues that the trial court erred by dismissing her claims because she presented evidence sufficient to support each element of her claims against Milton of (1) malicious prosecution; (2) intentional infliction of emotional distress; (3) negligent infliction of emotional distress; and (4) defamation; and against Ginger of (1) intentional infliction of emotional distress; (2) negligent infliction of emotional distress; and (3) libel. Funderburk argues that Hyde Brothers was vicariously liable for the torts of Milton and Ginger and further asserts that there was sufficient evidence to support the tort of malicious prosecution against Hyde Brothers based upon its vicarious liability for Ginger's acts.

Finding no error, we affirm.

FACTS

¶ 3. From August 15, 1996 to January *1091 22, 1999, Funderburk[1] worked as the bookkeeper of the True Value Hardware Store in Tunica. Hyde Brothers owned and operated the Tunica store and another hardware store in Clarksdale. Milton Johnson owned Hyde Brothers and was its chief executive officer. Milton's daughter, Ginger Johnson, was a part owner of Hyde Brothers and its chief financial officer. Milton and Ginger worked at the Clarksdale store and occasionally visited the Tunica store. The accounts of the Tunica and Clarksdale stores were kept separately, and Funderburk had no bookkeeping responsibilities related to the Clarksdale store.

¶ 4. Funderburk performed general bookkeeping duties at the Tunica store. The store's cash, checks and credit card slips collected throughout the day were kept in a drawer. Every morning, Funderburk compared the amounts of cash, checks, and credit card charges collected throughout the Tunica store's previous business day with the amounts of cash, check, and credit card sales shown by a computer printout of the day's sales totals. This printout was known as the daily cash balance worksheet (daily worksheet). The daily worksheet showed the amounts of cash, checks, and credit card slips that should have been in the drawer based upon the information entered by the salespersons for each sale. Funderburk had to count the cash, checks, and credit card slips in the drawer to see if they matched amounts shown on the daily worksheet. The daily worksheet provided a number, labeled, "Net Cash," that reflected the dollar amount that had been rung up as cash sales. The sheet also had a blank space labeled "Ending Cash" where Funderburk would write in the amount of cash that was actually in the drawer.[2] The daily worksheet had corresponding information for checks; it provided the dollar amount of the check sales that had been rung up and had a blank where Funderburk would record the total dollar amount of checks that were actually in the drawer. After completing the daily worksheet, Funderburk would remove the cash and checks from the drawer and deposit them into the Tunica store's bank account.

¶ 5. Milton observed that the Tunica store experienced continuing cash flow problems. In late 1998, the store lacked the money to pay some of its bills. Milton asked Ginger to look into the money problem. Ginger planned on obtaining the needed funds by collecting amounts due from the store's accounts receivable customers. These were customers who bought materials from the store on credit and made periodic payments toward their accounts. Ginger noticed that the accounts receivable ledger showed that a very large sum of money was owed to the store. She ran a printout that showed what each individual customer owed. This printout revealed that the individual customers actually owed much less than the amount that the accounts receivable ledger had said was outstanding. Ginger notified Milton of this discrepancy and continued investigating. She discovered instances of someone having debited the store's cash-on-hand ledger and having credited that amount to the accounts receivable ledger. This had artificially inflated the amount shown by the accounts receivable ledger.

¶ 6. In January 1999, Milton decided to close the Tunica store because its profits *1092 had not increased over a period of years and the business was not growing. In anticipation of the closing of the Tunica store, he instructed its manager, Brad Walhood, to terminate Funderburk immediately. After Funderburk's departure, the Tunica store's daily worksheets and deposits were handled at the Clarksdale store until the Tunica store closed in or around June 1999. Soon after Funderburk left, Milton had the Tunica store's financial records shipped to Clarksdale. He began reviewing the Tunica store's daily worksheets and noticed that the amount of cash actually collected, which was entered under "Ending Cash," usually matched the amount of cash sales shown by the computer under "Net Cash." From his experience in retail sales, Milton thought that it was unusual for the amount of daily sales rung up as cash to so frequently match the amount of cash actually collected that day. He thought that something was amiss.

¶ 7. Hyde Brothers's regular accounting firm was Barfield, Lindsey, Gainspoletti, and Gladden, Ltd. In March 1999, Milton told the firm's accountants about a potential problem. Due to the ongoing tax season, the accountants were unable to begin immediately investigating the problem. Milton and the accountants decided to delay the investigation until after June 30, 1999, the end of the Hyde Brothers's fiscal year. At some point, Milton informed the district attorney's office that his accountants were going to investigate the possibility of theft at the Tunica store.

¶ 8. In fall 1999, Dick Howell and Paul Watts, certified public accountants with the Barfield firm, reviewed the Tunica store's financial records. Milton told Howell and Watts that Funderburk was the bookkeeper and responsible for filling out the daily worksheets and making the deposits. Howell and Watts closed the Tunica store's books and performed a cash audit of the books. They compared the daily worksheets with the bank deposit slips. They discovered that, on many days, the total amount of the cash collected by the store, shown as "Ending Cash" on the daily worksheet, had not been deposited into the Tunica store's bank account.

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Bluebook (online)
935 So. 2d 1084, 2006 WL 771455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/funderburk-v-johnson-missctapp-2006.