Hodges v. Gibson Products Co.

811 P.2d 151, 158 Utah Adv. Rep. 6, 1991 Utah LEXIS 28, 1991 WL 46997
CourtUtah Supreme Court
DecidedApril 3, 1991
Docket20929
StatusPublished
Cited by65 cases

This text of 811 P.2d 151 (Hodges v. Gibson Products Co.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hodges v. Gibson Products Co., 811 P.2d 151, 158 Utah Adv. Rep. 6, 1991 Utah LEXIS 28, 1991 WL 46997 (Utah 1991).

Opinions

STEWART, Justice:

Gibson Products Company and Chad Crosgrove, manager of Gibson’s West Valley store in Salt Lake County, appeal a judgment holding them liable for malicious prosecution of a former Gibson employee, Shauna F. Hodges. Gibson also appeals the judgment holding it liable to Hodges for wrongful termination of her employment.

I. FACTS

Because Gibson and Crosgrove attack the sufficiency of the evidence, we rely on the facts most favorable to the verdict.

As store manager, Crosgrove closed out the cash registers at the end of every business day and placed the checks, cash, and cash register tapes from each register in separate money bags marked with the number of the register from which they were taken. After the store closed, Cros-grove placed the money bags in a safe near the service desk on the first floor for overnight keeping, and the next morning, he retrieved the bags from the safe and took them upstairs to a secure room where Hodges, a part-time bookkeeper, counted the receipts from each bag and checked the sum against the amount shown on the register tape for each cash register. She then recorded the total receipts from each register, entered the grand total from all registers on a daily report form, and prepared a bank deposit to be made by Crosgrove.

On the morning of September 4, 1981, Hodges went to the secure room, where she obtained the prior day's receipts which had been placed in the money bags together with the cash register tapes. She counted the receipts, filled out the daily report, and made out a bank deposit slip. When her tasks were completed, she went home. Company policy called for Crosgrove to deposit the receipts by 3 p.m. that day. However, around 4 p.m. Glen Murray, the assistant store manager, looked at the daily report prepared by Hodges and noticed that it showed no receipts for cash register No. 4. He checked to make sure that register No. 4 had been used the previous day and told Crosgrove of the discrepancy. After being informed of the missing money, company officials came to the store, and Crosgrove called Hodges and told her to return to the store. Crosgrove stated that when he first went to the secure room, he found part of a tape from register No. 4 in the wastebasket. Later, additional tapes, void slips from register No. 4, and torn deposit slips for Mrs. Hodges’ personal bank account were found in a garbage bag. The missing checks from register No. 4 were found in the bag for register No. 2, and the empty bag for register No. 4 was found at the service desk. Crosgrove initially testified that upon returning to the secure room, he found some checks from register No. 4 in bag No. 2. Unless he had had sufficient time, however, to laboriously check the tape for register No. 2 line by line to determine which checks in bag No. 2 had not been taken at that register, he must have had previous knowledge about the misplacement of the checks. Cros-grove also testified, somewhat inconsistently, that he could not identify which checks came from register No. 4 until after a corporate accountant performed an audit. The audit revealed that the checks that should have been in the bag for register No. 4 had been put in the bag for register No. 2 and an amount of cash that equaled those checks had been withdrawn.

When Hodges returned to the store on September 4, she was confronted by Cros-grove and charged with stealing the money. She denied receiving the bag for the receipts from register No. 4 and steadfastly denied stealing the money. She insisted then, and consistently thereafter, that she [155]*155had not received the money sack for register No. 4 from Crosgrove.

Several days later, Gibson management called Hodges to another meeting and again asked for an explanation. Once again she explained that she had not taken the money. Notwithstanding her protestation of innocence, Gibson officials stated that they would allow her to resign rather than be fired if she paid Gibson the missing amount of money. Again asserting her innocence, she declined to resign.

Gibson suspended her from work on September 8, 1981, and on September 9, 1981, Crosgrove, Ron Harris, Gibson’s auditor, and Bob Cornett, Gibson’s general manager, went to the police and made an accusation of theft against Hodges. Although Crosgrove had had access to all the money bags containing register receipts during the night of September 3 and the morning of September 4, before they were given to Hodges, and was apparently the only other person to have had any such access to the bags, Gibson did not investigate the possibility that Crosgrove might have stolen the money and instead pointed the finger of blame at Hodges. Because Gibson had not at that time discovered that Crosgrove was in fact stealing both money and merchandise from Gibson, Crosgrove did not, of course, inform the police or other Gibson officials that he had been stealing substantial sums from Gibson during a period which included the month of September 1981. Hodges was arrested, handcuffed, and charged with theft. Following a preliminary hearing, she was bound over for a trial scheduled for May 12, 1982.

Before Hodges’ trial could be held, a Gibson company audit discovered that Crosgrove had embezzled some $9,000 in cash and goods during a period that included the loss attributed to Hodges. Cros-grove’s scheme of embezzlement utilized a method known as “lagging” bank deposits by which he retained a day’s cash receipts, refrained from making a bank deposit, and then made up the deposit out of subsequent receipts. Gibson did not charge Crosgrove with theft, despite his confession and the large amount taken; rather, he was permitted to resign on the condition that he repay Gibson. On March 14, 1982, seven weeks before Hodges’ scheduled trial date, Crosgrove resigned.

Gibson officials did not inform the prosecuting attorney in Hodges’ case of Cros-grove’s thefts until the eve of the scheduled trial, almost two months after the company became aware of Crosgrove’s thefts. In light of Crosgrove’s admitted thefts and the fact that he was Gibson’s chief witness against Hodges, the prosecutor immediately dismissed the theft charge against Hodges. In May 1982, after eight months on suspension, and after the formal dismissal of the criminal charges against her, Gibson fired Hodges for the stated reason that she “failed to follow proper procedures.”

Hodges sued both Gibson and Crosgrove for malicious prosecution and intentional infliction of emotional distress and Gibson alone for wrongful termination. Gibson counterclaimed for conversion. The jury found Gibson and Crosgrove liable for malicious prosecution, but not liable for intentional infliction of emotional distress, and Gibson liable for wrongful termination. The jury apparently found that Hodges suffered significant psychological trauma from the accusation and initiation of the criminal charge, was unable to find other employment as a result, and suffered a loss of wages during her suspension and after her discharge. The jury returned a verdict against Gibson for $70,000 in compensatory damages and $7,000 in punitive damages and a verdict against Crosgrove for $10,000 in compensatory damages and $1,000 in punitive damages. The jury found Hodges not liable on Gibson’s counterclaim for conversion.

On this appeal, Gibson and Crosgrove contend that the evidence was insufficient to support the elements of a malicious prosecution action. In addition, Gibson contends that the jury instructions were erroneous with respect to the malicious prosecution claim, the wrongful termination claim, and damages.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re Harding Trust
2023 UT App 81 (Court of Appeals of Utah, 2023)
Aguila v. Planned Parenthood of Utah
2023 UT App 49 (Court of Appeals of Utah, 2023)
Blackburn v. USA
D. Utah, 2021
Truman v. Orem City
D. Utah, 2019
Nat'l Title Agency LLC v. JPMorgan Chase Bank NA
2018 UT App 145 (Court of Appeals of Utah, 2018)
Lane v. Provo Rehabilitation and Nursing
2018 UT App 10 (Court of Appeals of Utah, 2018)
Ray v. Wal-Mart Stores, Inc.
2015 UT 83 (Utah Supreme Court, 2015)
Ray v. Wal-Mart
2015 UT 83 (Utah Supreme Court, 2015)
Egan v. Butler
Supreme Court of Virginia, 2015
Judge v. Saltz Plastic Surgery, PC
2014 UT App 144 (Court of Appeals of Utah, 2014)
Reighard v. Yates
2012 UT 45 (Utah Supreme Court, 2012)
Neff v. Neff
2011 UT 6 (Utah Supreme Court, 2011)
MacArthur v. San Juan County
391 F. Supp. 2d 895 (D. Utah, 2005)
Gibbons v. Lambert
358 F. Supp. 2d 1048 (D. Utah, 2005)
Epperson v. Wal-Mart Stores, Inc.
862 A.2d 1156 (New Jersey Superior Court App Division, 2004)
Hernandez v. Baker
2004 UT App 462 (Court of Appeals of Utah, 2004)
Roska v. Peterson
328 F.3d 1230 (Tenth Circuit, 2003)
Diversified Holdings, L.C. v. Turner
2002 UT 129 (Utah Supreme Court, 2002)
Wardley Better Homes and Gardens v. Cannon
2002 UT 99 (Utah Supreme Court, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
811 P.2d 151, 158 Utah Adv. Rep. 6, 1991 Utah LEXIS 28, 1991 WL 46997, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hodges-v-gibson-products-co-utah-1991.