Johnson v. Supersave Markets, Inc.

686 P.2d 209, 211 Mont. 465, 1984 Mont. LEXIS 988
CourtMontana Supreme Court
DecidedAugust 13, 1984
Docket83-202
StatusPublished
Cited by72 cases

This text of 686 P.2d 209 (Johnson v. Supersave Markets, Inc.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Supersave Markets, Inc., 686 P.2d 209, 211 Mont. 465, 1984 Mont. LEXIS 988 (Mo. 1984).

Opinions

MR. JUSTICE MORRISON

delivered the Opinion of the Court.

Supersave appeals from a judgment entered on February 9,1983 by the District Court of the Fourth Judicial District awarding Johnson $17,000 in damages.

Respondent filed an action on December 14, 1981 seeking damages for intentional unlawful arrest or imprisonment or, in the alternative, for money damages resulting from appellant’s negligence in causing an arrest and imprisonment.

A jury trial was commenced on all issues on January 24, [468]*4681983. At the close of respondent’s case-in-chief, the trial court granted appellant’s motion dismissing the count for intentional tort and the prayer for punitive damages. On the negligence issue the jury decided liability in respondent’s favor and awarded $17,000 in damages, subject to a fifteen percent reduction for comparative negligence.

Appellant filed timely consolidated post-trial motions: motion for judgment notwithstanding the verdict, motion for entry of an amended judgment, motion for a new trial. Appellant’s motions were denied. This appeal followed:

Respondent cross-appealed. The cross-appeal requests the jury verdict and judgment of the district court judge be affirmed, the directed verdict on punitive damages be overruled and the case remanded on the issue of punitive damages only.

On January 2, 1979 respondent’s wife, Rosemary Johnson, issued a check on respondent’s account made payable to Supersave in the amount of $35.99. Rosemary Johnson signed the respondent’s name without his knowledge. Using Rosemary’s driver’s license number as identification, Super-save’s employee cashed the check. Upon presentment, the draft was returned to Supersave for insufficient funds. This check is the basis of the complaint filed against appellant.

Respondent had no established check-cashing policy with Supersave granting Rosemary permission to sign his signature for check cashing purposes. Respondent testified that on previous occasions his wife had signed his signature on his account but only in his presence. Occasionally respondent issued and signed a check in blank for Rosemary to cash at local businesses. Respondent testified that on January 2, 1979 he did not authorize his wife to sign his signature on any draft from his checking account.

In January, 1979 Marcia Gaustad, the Supersave employee charged with collection of bad checks, sent two demand letters to respondent requesting that he honor the subject check. Respondent’s mother assured Ms. Gaustad that payment would be made before February 10, 1979. Respondent [469]*469did not make restitution in February or March.

Upon respondent’s failure to make the check good, Super-save sent the account to a collection agency, Data Check. Data Check wrote at least one demand letter to respondent by certified mail which was accepted by respondent’s wife. No payment resulted through these collection efforts.

Between March 8 and 29, 1979, Data Check assigned respondent’s delinquent account to the Missoula County Attorney’s office for prosecution. The Count Attorney attempted to contact respondent on March 29, without success.

On April 3,1979 respondent made restitution on the delinquent draft directly to Supersave. He received a receipt for full payment. After restitution was made, Supersave’s standard business procedure was to apprise the collection agency (Data Check) of such final payment. Once Super-save transferred the bad check to Data Check for collection, the established policy was for Supersave to deal directly with its agent, Data Check, and not the County Attorney’s office.

Prior to filing a criminal complaint against respondent, the County Attorney’s office attempted to verify restitution by contacting both Data Check and Supersave. The Super-save employee was unable to confirm restitution by respondent. Data Check “absolutely verified that there was no restitution” on respondent’s delinquent account. On June 7, 1979, the County Attorney filed a complaint and obtained a warrant for respondent’s arrest.

On December 16, 1979, respondent was driving his automobile. He was stopped for suspicion of driving under the influence of alcohol and arrested when a routine check disclosed the outstanding warrant. The arresting officer instructed him to drive to the city jail where he was handcuffed, frisked, booked and fingerprinted. Two and one-half hours expired from the time respondent was arrested to the time he was able to post bond and be released. Charges against respondent were dismissed on December 18, 1979, [470]*470based on restitution he made six months prior to his arrest. Appellant presents the following issues upon appeal:

1. Whether the jury verdict finding that respondent was unlawfully arrested is supported by the evidence.

2. Whether Montana recognizes a right of action for negligence resulting in imprisonment.

3. Whether emotional distress damages are proper in a negligence action absent a finding of injury.

4. Whether the jury award of damages is cumulative.

The determinative issue is not unlawful arrest but negligence. Negligence was properly pled in the respondent’s complaint and adequate jury instructions were given to properly submit the issue of negligence. The only necessary determination is whether the record supports a finding of negligence.

Appellant owes its patrons the duty to exercise reasonable care to avoid arrest and criminal charges for nonpayment of a bad check for which restitution has been made. The appellant could be found to be negligent for breach of this duty on two counts: (1) cashing the subject check without proper identification; and (2) failing to terminate the collection process once respondent made full payment on the delinquent draft.

Mr. Edward M. Pope, corporate secretary-treasurer and chief financial officer, testified about Supersave’s check-cashing policies. Honoring a check made out to Supersave which is written by someone other than the person presenting the check for payment required either two forms of identification or an established check-cashing policy with the individual party. Cashing the check using her husband’s name, absent an agreement permitting Rosemary to sign, violated Supersave’s check-cashing policies and constituted evidence of negligence.

Supersave’s failure to curtail the collection actions brought against respondent once he made full payment on the outstanding check evidences the second act of negligence. It is undisputed that Data Check was acting as [471]*471Supersave’s agent. It was incumbent upon Supersave to insure all collection actions initiated by Data Check, including assistance from the County Attorney, were discontinued upon restitution made by respondent. Respondent’s arrest six months post restitution resulted from Supersave’s failure to fulfill this obligation.

We now address appellant’s contention that damages for emotional distress may not be recovered absent a finding of injury. In Versland v. Caron Transport, (Mont. 1983), [206 Mont. 313,] 671 P.2d 583, 40 St. Rep. 1681, 1686-87, this Court unequivocably eliminated the physical injury requirement for recovery of emotional distress resulting from negligent infliction.

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Bluebook (online)
686 P.2d 209, 211 Mont. 465, 1984 Mont. LEXIS 988, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-supersave-markets-inc-mont-1984.