Kenney v. Hanger Prosthetics & Orthotics, Inc.

269 S.W.3d 866, 2007 Ky. App. LEXIS 344, 2007 WL 2743671
CourtCourt of Appeals of Kentucky
DecidedSeptember 21, 2007
Docket2006-CA-000939-MR
StatusPublished
Cited by31 cases

This text of 269 S.W.3d 866 (Kenney v. Hanger Prosthetics & Orthotics, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kenney v. Hanger Prosthetics & Orthotics, Inc., 269 S.W.3d 866, 2007 Ky. App. LEXIS 344, 2007 WL 2743671 (Ky. Ct. App. 2007).

Opinion

*869 OPINION

VANMETER, Judge.

John M. Kenney appeals from the Fayette Circuit Court’s order granting summary judgment in favor of Hanger Prosthetics & Orthotics, Inc. (Hanger). Kenney argues on appeal that the trial court erred by failing to allow him to amend his complaint and by granting summary judgment in Hanger’s favor on his breach of contract claim, and that the trial judge erred by fading to recuse from the case. For the following reasons, we affirm.

Hanger, a company which provides prosthetic and orthotic services, employed Kenney from June 1990 until he resigned in November 2001. Thereafter, Kenney formed his own business, Kenney Orthopedic. In February 2002, Kenney filed a complaint alleging that Hanger and one of its employees, Michael Adams, had interfered with his venture by advising potential customers that Kenney was barred from competing with Hanger in the Lexington area. Kenney also alleged that Hanger and Adams published statements that Kenney engaged in theft of time and services, and embezzled money while he worked for Hanger. Kenney sought a temporary injunction and alleged breach of contract based on the allegations that Hanger failed to pay him certain compensation due under the employment agreement, and that they misrepresented the employment agreement to others. Kenney also alleged defamation and tortious interference with a prospective advantage.

The trial court subsequently granted summary judgment in Hanger’s favor regarding Kenney’s claims of defamation and tortious interference with a prospective advantage. Kenney then moved the court to allow him to amend his complaint to include several additional causes of action; however, the trial court denied Kenney’s motion.

The matter proceeded regarding Ken-ney’s claim of breach of contract, under which he alleged he was owed three distinct payments: a bonus under a 30% Incentive Plan, compensation under a summer 2001 stock option agreement, and 4% commission. The trial court eventually granted summary judgment in Hanger’s favor on the former two claims; the latter claim was set for trial. After the trial resulted in a hung jury, Hanger moved for summary judgment in its favor on Ken-ney’s claim for 4% commission. The trial court granted Hanger’s motion. This appeal followed.

I. Motion to Amend Complaint

Kenney argues that the trial court erred by fading to allow him to amend his complaint to include several causes of action. We will address each in turn.

Pursuant to CR 1 15.01, under circumstances such as those present herein, “a party may amend his pleading only by leave of court or by written consent of the adverse party; and leave shall be freely given when justice so requires.” In determining whether to grant a motion to amend a party’s complaint, a circuit court “may consider such factors as the failure to cure deficiencies by amendment or the futility of the amendment itself.” First National Bank of Cincinnati v. Hartman, 747 S.W.2d 614, 616 (Ky.App.1988). Other factors include whether amendment would prejudice the opposing party or would work an injustice. See Shah v. American Synthetic Rubber Corp., 655 S.W.2d 489, 493 (Ky.1983). Ultimately, whether a party may amend his complaint is discretion *870 ary with the circuit court, and we will not disturb its ruling unless it has abused its discretion. Lambert v. Franklin Real Estate Co., 37 S.W.3d 770, 779 (Ky.App.2000).

A. Interference with Prospective Contractual Relations

First, Kenney argues that the trial court erred by failing to allow him to amend his complaint to include a cause of action for the tort of interference with prospective contractual relations. We disagree.

The trial court likened this proposed count to Kenney’s allegation in his initial complaint of tortious interference with a prospective business advantage. Since the trial court had already granted summary judgment in Hanger’s favor on the initial count, it denied Kenney’s motion to amend his complaint to include the proposed count.

Although Kenney called the causes of action in his initial complaint and proposed amended complaint by different names, it is clear that they referenced the same cause of action. Indeed,

[t]he tort of interference with a prospective advantage is plagued with the absence of a uniformly recognized terminology. It has been referred to as the tort of interference with a business relationship, inducing refusal to deal, interference with a prospective economic advantage, interference with advantageous relations, interference with reasonable economic expectancies, or interference with prospective business expectancies .... The American Law Institute has named the tort “Intentional Interference with Prospective Contractual Relation.”

William S. Haynes, Kentucky Jurisprudence, Torts § 13-1 (1987). Both of Ken-ney’s counts clearly referenced Hanger’s interference with Kenney’s prospective business relationships, even if the allegations in his proposed amended complaint were more specific in that they referenced actual businesses with which Kenney had the expectation of business relationships. Because the trial court already had granted summary judgment in Hanger’s favor on the count in Kenney’s initial complaint, it did not err by failing to allow Kenney to amend his complaint to include the count of interference with prospective contractual relations. 2

B. Defamation Per Quod

Next, Kenney argues that the trial court erred by failing to allow him to amend his complaint to include a cause of action for the tort of defamation per quod. We disagree.

Again, the trial court denied Ken-ney’s motion to amend his complaint to include a count for defamation per quod as it had already granted summary judgment in Hanger’s favor on Kenney’s defamation allegations in his initial complaint. Defamatory words may be action per se, or per quod. Stringer v. Wal-Mart Stores, Inc., 151 S.W.3d 781, 794 (Ky.2004). The difference between defamation per se and defamation per quod is that, in the former, damages are presumed and, in the latter, the plaintiff must prove special damages. Id. As such, the trial court did not err by failing to allow Kenney to amend his complaint to include the count of defamation per quod as it had already granted summary judgment in Hanger’s favor on Ken- *871 ney’s initial defamation count. 3

C. Unfair Competition/Trade Practices

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Bluebook (online)
269 S.W.3d 866, 2007 Ky. App. LEXIS 344, 2007 WL 2743671, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenney-v-hanger-prosthetics-orthotics-inc-kyctapp-2007.