Hanks v. Hubbard Broadcasting, Inc.

493 N.W.2d 302, 8 I.E.R. Cas. (BNA) 141, 1992 Minn. App. LEXIS 1178, 1992 WL 358283
CourtCourt of Appeals of Minnesota
DecidedDecember 8, 1992
DocketC8-92-558
StatusPublished
Cited by54 cases

This text of 493 N.W.2d 302 (Hanks v. Hubbard Broadcasting, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hanks v. Hubbard Broadcasting, Inc., 493 N.W.2d 302, 8 I.E.R. Cas. (BNA) 141, 1992 Minn. App. LEXIS 1178, 1992 WL 358283 (Mich. Ct. App. 1992).

Opinion

OPINION

AMUNDSON, Judge.

Appellant Hubbard Broadcasting, Inc. challenges the jury verdict awarding respondent Ruth Ann Spencer Hanks $82,603 in compensatory damages for intentional misrepresentation and $300,000 in punitive damages. We affirm.

FACTS

In July 1985, respondent Ruth Ann Spencer Hanks (Spencer) began working as a television news anchor at KSTP-TV, owned by appellant Hubbard Broadcasting, Inc. (HBI). On July 10, 1986, Spencer signed a new three year contract extending her employment through June 30, 1989. The last year of the contract provided Spencer would earn $150,000.

This new contract also contained a “window” period from July 1, 1988 to June 30, 1989, allowing Spencer to leave during the last year of the contract if she received a written offer from a network affiliate (ABC, CBS or NBC) or from a station in *305 one of the ten largest television markets (a “top ten” market), subject to HBI’s right to meet the offer. The contract was silent on whether HBI would promote Spencer or whether Spencer would be given “co-equal” status with any other anchor.

On March 16, 1987 HBI decided to replace Spencer’s co-anchor, Stan Turner, and a search began for his replacement. Spencer expressed concern to various managers about the lack of promotional activities that included her. HBI officials told Spencer that it would not promote the Spencer/Turner news team because Turner was going to be replaced. Stanley Hubbard, chief executive officer of HBI, told Spencer in March 1987 that when Turner’s replacement was accepted by the viewers, more extensive promotions of the news team could begin.

In July 1987, Spencer approached Robert Regalbuto, then the general manager of KSTP-TV, to talk about the level of promotional activity. According to Spencer, Regalbuto told her he had a plan to do an extraordinary promotional “blitz” of the new team in May 1988, “unlike any you have seen,” after Turner’s replacement had been accepted. By May 1988, Turner’s replacement had not been hired, and HBI was not implementing a promotional campaign to the extent Spencer expected.

Mendes Napoli joined HBI as Vice President of News in January 1988. Spencer met with Napoli in February 1988 and expressed concern about the level of promotional activity. Napoli assured Spencer that he was looking for an anchor “to go with her” and that a vigorous promotional campaign would be put into action as soon as the new anchor team was in place.

In April 1988, Spencer told Napoli she had hired an agent, Pam Pulner, as a safety net in case the new anchor team was not accepted. Pulner sent a tape of Spencer’s work to KNBC in Los Angeles, the number two market in the United States. Pulner testified that KNBC expressed interest in Spencer. 1 Spencer, however, testified that in reliance upon the representations made by HBI management, she told Pulner not to pursue this opportunity or any other opportunities. Pulner further testified that she encouraged Spencer to look for a new position while she was at KSTP-TV but Spencer refused, believing the representations of HBI officials.

A new co-anchor, Randall Carlisle, was hired and began appearing with Spencer in September 1988. Spencer contends that prior to the arrival of Carlisle, KSTP-TV used its co-anchors on a roughly equal basis. After Carlisle was hired, however, Spencer asserts the format of the news program was changed “radically.” Spencer testified that HBI began implementing a decision to make Carlisle the leader of the anchor team and to reduce her to a secondary role.

After Carlisle was hired, the pre-record-ed opening of the newscast did not include Spencer. Additionally, where Turner and Spencer had alternated opening the newscast, Carlisle always opened the show and usually read the first story as well. Spencer testified she would not appear until well into the broadcast and without any introduction. Spencer and Turner also alternated reading “teases,” a description of an upcoming story designed to hold viewer attention. Spencer asserts that once Car-lisle appeared he read all the teases. In spite of these format changes, HBI officials testified they planned to make Spencer as big a star as possible.

Former executive producer Gloria Mc-Donough testified that Carlisle was being positioned as the lead anchor because he was the stronger anchor. She saw this positioning as part of the “big picture,” and that certain techniques were used, such as having anchors read certain stories, to build a public perception of the anchor.

Former KSTP-TV news director Larry Price testified that HBI’s consultant, Frank Magid told him that a news show should have a lead anchor and it should be a male. Former KSTP-TV anchor Ron Magers tes *306 tified that Magid once stated that he would like the role of the male and female anchors to be equal, but “the male should be the first among equals.”

Spencer testified she was never told of this decision to reduce her role. Spencer claims that Regalbuto and Napoli repeatedly told her their strategy was only to introduce Carlisle into the market and there was no intention to reduce her role as an equal co-anchor. HBI contends that it learned to be cautious and not to promote a new anchor or team before it had been accepted by the viewing public. HBI asserts it could be more harmful to promote a new team prematurely than to delay the promotion and that a new anchor’s introduction must be carefully engineered to prevent viewer backlash.

Spencer asserts that had she been told the truth about management’s decision to make Carlisle the leader of the anchor team, she would have instructed her agent to seek a position for her in a top ten market and would have exercised her contractual right to leave KSTP-TV.

On February 24, 1989, Napoli had scheduled a meeting with Spencer. By this time, Spencer had concluded Napoli was lying to her. Spencer testified she assumed Napoli was going to fire her at the meeting. Spencer met with Napoli in his office and secretly recorded the meeting upon the advice of her former attorney. During the course of the meeting, Spencer revealed she was taping the meeting. Spencer was immediately taken off the air. On February 25, 1989, Napoli wrote Spencer a letter relieving her of her duties at KSTP-TV, purportedly for having secretly tape recorded the meeting. 2 Spencer was paid the remaining compensation due to her under the contract.

Spencer was out of work from July 1989 to March 1990 when she obtained a “number two” and “less prestigious” weekday anchor position at WDIV-TV in Detroit for less money than she was receiving at KSTP-TV. Spencer earns $125,000 annually at the Detroit station. Pulner testified the taping incident did not prevent her from obtaining a position for Spencer sooner, but that it takes a considerable amount of time to move an anchor into a new position in a larger market. Pulner also believed the reduction in Spencer’s role made the job search more difficult.

Spencer commenced this action on March 14, 1989.

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493 N.W.2d 302, 8 I.E.R. Cas. (BNA) 141, 1992 Minn. App. LEXIS 1178, 1992 WL 358283, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanks-v-hubbard-broadcasting-inc-minnctapp-1992.