John Bethel v. McAllister Brothers, Inc. Frank J. Huesser Thomas Bethel, as Administrator of the Estate of John Bethel

81 F.3d 376, 35 Fed. R. Serv. 3d 134, 1996 U.S. App. LEXIS 8716, 1996 WL 181422
CourtCourt of Appeals for the Third Circuit
DecidedApril 17, 1996
Docket95-1436
StatusPublished
Cited by85 cases

This text of 81 F.3d 376 (John Bethel v. McAllister Brothers, Inc. Frank J. Huesser Thomas Bethel, as Administrator of the Estate of John Bethel) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Bethel v. McAllister Brothers, Inc. Frank J. Huesser Thomas Bethel, as Administrator of the Estate of John Bethel, 81 F.3d 376, 35 Fed. R. Serv. 3d 134, 1996 U.S. App. LEXIS 8716, 1996 WL 181422 (3d Cir. 1996).

Opinions

OPINION OF THE COURT

GREENBERG, Circuit Judge.

I. THE HISTORY OF THE CASE

This matter is before this court on appeal following proceedings having an unusual procedural history. Appellee, McAllister Brothers, Inc., is a tugboat operator on the Delaware River in the Philadélphia area. McAllister employed John Bethel as a river docking pilot between December 1987 and December 1990, when it discharged him. Thereafter, Bethel brought this action against McAllister in the district court but he died after the trial. Consequently, Thomas Bethel, the administrator of his estate, is now the appellant. Our references to “Bethel” in this opinion, however, are to John Bethel.

Bethel alleged in the complaint that he sustained personal injuries on December 17, 1990, while working as a docking pilot for McAllister, which shortly thereafter wrongfully discharged him. He also contended that McAllister defamed him by asserting that it fired him because he refused to take a drug test after his injury, thereby suggesting that he was a drug user and hindering his efforts to obtain employment in the maritime and shipping industry. In addition to McAllister, Bethel sued appellee Frank J. Huesser, a supervisor at McAllister, charging that he was also liable for these alleged wrongs. Bethel obtained a judgment for his personal injuries under the Jones Act, 46 U.S.C. § 688, which McAllister satisfied, and McAllister obtained a judgment as a matter of law on the wrongftd discharge claim, which is not at issue on this appeal. Inasmuch as we are not concerned with these claims, and because Huesser’s presence in this litigation in no way affects our disposition of the issues, as a matter of convenience we will treat this case [378]*378as simply a defamation action between Be-thel, succeeded by the appellant, and McAl-lister. Of course, we nevertheless have considered the arguments Huesser set forth both in his brief and at oral argument.

At the trial, Bethel recovered a judgment for $554,000 in compensatory damages and $250,000 in punitive damages on the defamation claim. McAllister then successfully moved for a judgment as a matter of law under Fed.R.Civ.P. 50(b). The court concluded that the other towing companies in the Philadelphia area, which Bethel alleged would not hire him after McAllister discharged him, did not understand McAllister’s statements as indicating that Bethel was a drug user, and further concluded that Bethel failed to prove that McAllister’s statements caused him “special harm” as required by Pennsylvania law which is applicable to the defamation issues in this action. Agriss v. Roadway Express, Inc., 334 Pa.Super. 295, 483 A.2d 456, 461 (1984); see also Solosko v. Paxton, 383 Pa. 419, 119 A.2d 230, 232 (1956).

Bethel then appealed, but before we could hear and decide the appeal, he died on December 4, 1993, so appellant was substituted for him as a party. On February 4, 1994, over a dissent, in an unreported opinion we reversed the order granting the judgment as a matter of law and remanded the case for entry of a judgment in favor of the appellant. Bethel v. McAllister Bros., Inc., 19 F.3d 642 (3d Cir.1994). We found that there was sufficient evidence that McAllister had defamed Bethel to support the jury’s verdict. Furthermore, we concluded that there was evidence that he had suffered special harm because Riverbus, Inc., a ferry operator that employed him after McAllister discharged him, terminated that employment when it learned from McAllister that it had discharged him for refusing to take a drug test.1 In reaching this result, we relied on Bethel’s testimony that Riverbus fired him when it acquired that information in a background check. We also indicated that the award of compensatory damages was predicated, at least in part, on Riverbus having fired him. On April 12, 1994, the district court entered judgment in favor of Bethel against McAllis-ter in accordance with our mandate.

On March 1,1994, McAllister moved in the district court for relief from the judgment to be entered on the remand pursuant to Fed. R.Civ.P. 60(b)(3), relying on evidence that it discovered after we reversed the judgment in favor of McAllister to establish that Bethel committed fraud at the trial.2 The evidence was Bethel’s testimony in an arbitration proceeding against Riverbus after it discharged him. Bethel testified in that proceeding that Riverbus discharged him for a myriad of reasons, of which his refusal to take the drug test as directed by McAllister was but one.

The district court granted McAllister’s motion in an opinion and accompanying order, both dated July 11, 1994. The court found that Bethel had given “patently misleading” testimony and had “knowingly concealed a material fact” at the trial and thus had committed fraud. Consequently, the court vacated the judgment of April 12,1994, and granted McAllister a new trial on both liability and damages. Thereafter, at appellant’s request, the district court amended the order of July 11, 1994, by certifying it under 28 U.S.C. § 1291(b) so that he could seek leave to appeal. We, however, denied leave to appeal on September 19, 1994. In the meantime, the appellant sought reconsideration of the order of July 11, 1994, with respect to the scope of the retrial, which he argued the court should have limited to damages. The district court, by order entered December 13, 1994, adhered to its decision that the new trial would be on both liability and damages.

The appellant did not wish to retry the case, as he had concluded that in light of the district court’s findings that Bethel had committed perjury,3 he could not succeed in a [379]*379retrial. Thus, in his view, the order granting a new trial effectively awarded McAllister a final judgment. Therefore, at a conference on November 3, 1994, the appellant requested that the court enter a final judgment in McAllister’s favor so that he could appeal the granting of the new trial. The court, though acknowledging that the appellant was in a difficult position, did not do so. In this regard we are perplexed by the appellant’s articulated concerns because we can conceive of no way that the jury at a retrial could have learned of the district court’s conclusion that Bethel had committed perjury, though we can understand how McAllister might have been able to use Bethel’s testimony from the arbitration hearing at the retrial, particularly if appellant used Bethel’s testimony from the first trial at a second trial. We explored the point at oral argument and appellant’s attorney acknowledged that the district court never said that its holding under Rule 60(b)(3) somehow would be made known to the jury at the new trial.

In any event, appellant persisted in his efforts to have a final judgment entered in McAllister’s favor.

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Bluebook (online)
81 F.3d 376, 35 Fed. R. Serv. 3d 134, 1996 U.S. App. LEXIS 8716, 1996 WL 181422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-bethel-v-mcallister-brothers-inc-frank-j-huesser-thomas-bethel-as-ca3-1996.