Kitco, Inc. v. Corporation for General Trade

706 N.E.2d 581, 1999 Ind. App. LEXIS 286, 1999 WL 112525
CourtIndiana Court of Appeals
DecidedMarch 5, 1999
Docket02A03-9806-CV-258
StatusPublished
Cited by33 cases

This text of 706 N.E.2d 581 (Kitco, Inc. v. Corporation for General Trade) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kitco, Inc. v. Corporation for General Trade, 706 N.E.2d 581, 1999 Ind. App. LEXIS 286, 1999 WL 112525 (Ind. Ct. App. 1999).

Opinion

OPINION

BAILEY, Judge

Case Summary

Appellant-Plaintiff Kitco, Inc. (“Kitco”) appeals from the trial court’s grant of summary judgment in favor of Corporation for General Trade D/B/A WKJG-TV 33 (“WKJG”). Appellant-Plaintiff Rhett Burgess (“Burgess”) also appeals the trial court’s granting of WKJG’s Motion to Dismiss, made pursuant to Indiana Trial Rule 12(B)(6). Both Kitco and Burgess (collectively “Plaintiffs”) claim that the trial court erred in determining that they presented no issues of material fact and that WKJG was therefore entitled to judgment as a matter of law in this defamation action.

We affirm.

Issue

Plaintiffs raise numerous issues for our review; however, we find the following issue dispositive: Whether the evidence was sufficient to show that WKJG acted with actual malice when it broadcast the allegedly defamatory news story.

Facts

The facts most favorable to Plaintiffs, the non-moving parties, reveal that Kitco operates a factory in Bluffton, Indiana, where workers turn hot molten rubber into various automobile parts. During the summer of 1995, there was a heat wave which made the plant, which was not air-conditioned, a hot and sweaty place to work. On August 15, 1995, Burgess, the Chief Executive Officer (“CEO”) of Kitco, was approached by the plant manager who stated that he needed to see Burgess on a personnel matter. The plant manager informed Burgess that five third-shift employees had walked out of the *584 Bluffton plant the night before in protest of not receiving an extended lunch break. Burgess was also informed that when each of the employees left the plant, they complained of the heat. Based on this information, Burgess prepared a “Notice of Termination” directed to each of the five employees and instructed the plant manager to serve the employees with the termination notice upon their return to work, unless the employee produced a doctor’s verification that upon leaving the plant they had sought immediate medical treatment for any illness. In such a case, some lesser discipline would be imposed for violating the mandatory safety procedures regarding heat stress treatment.

' After leaving the plant on August 15, none of the five workers immediately sought medical treatment. The earliest any of the employees received medical attention was when Ken West (“West”) saw his doctor on the morning of August 16, approximately thirty hours after he left the plant. West had called for an appointment the day before, but no appointments were available.

On August 17, 1995, Burgess received a telephone call from Karen Frankola (“Fran-kola”), the news director at WKJG. Frankola informed Burgess that West had called the news station’s hotline and had made a charge that Kitco was working its employees excessive overtime hours in the heat; and, when people became sick from the heat, Kitco was firing them. Burgess denied the charges and also denied that the workers had left due to illness. Burgess then explained to Fran-kola that the third-shift employees had been terminated because they had engaged in a walk-out in protest over not having received an extended lunch break. Burgess and Frankola also discussed what measures Kitco was taking to protect its workers during the extremely hot conditions, including allowing extended lunch breaks when deemed appropriate by the shift leaders, providing popsi-cles for the workers, and allowing workers to rest in an air-conditioned office if they felt sick. Also during this conversation, Burgess invited Frankola and other WKJG representatives to come to the Kitco plant and to speak with any of the employees or management personnel and to review its personnel files, policies and procedures.

Frankola called West back and repeated what Burgess had told her. West emphatically maintained that he had left work early because he was sick. Frankola then called Burgess back and stated that WKJG would like to accept his offer to visit the plant and wanted to interview him on air. However, when Burgess declined to be interviewed on camera and stated that he would not allow any photography inside the plant, Frankola decided not to visit the plant. Frankola explained this decision stating that because television was a visual medium, she saw little value in Burgess’ offer for her to tour the plant and that she had all the information she needed from her telephone conversations with Burgess.

Later that same day, Frankola met with news reporter Bryan Garner (“Garner”) and related to him her conversations with Burgess and West. She then instructed Garner to travel to Bluffton, Indiana, with a cameraman, to interview and tape the five terminated employees. During his interview with the employees, Garner learned of the unbearable heat inside the factory during the summer heat wave. The workers described the work inside the factory as working inside a “hell hole,” a “hole,” and a “s-hole.” However, the workers did not use the term “sweat shop” to describe the factory.

West told Garner that the temperature inside the plant could reach as high as 120 degrees and noted that the temperature can exceed 350 degrees over the hot molds. Additionally, each of the workers stated that they had left work due to sickness, which had either been caused or exacerbated by the extreme heat. Specifically, West described that he had been nauseous, that his face was extremely red, that he had been sweating profusely, that he had felt light-headed, that he had vomited earlier in the evening, and that he had suffered from diarrhea. West also stated that his condition had gotten much worse because of the extreme heat inside the factory. West was the only employee who had a doctor’s note and he faxed Garner a copy of the note before WKJG’s first broadcast.

*585 Wesley Nally (“Nally”) told Garner that he had been to the hospital the night before. Nally claimed that it had been unbearably hot inside the factory on the night he left, that he was exhausted, sweating profusely, sick to his stomach, and felt like he was going to throw up at any time. Nally also told Garner that the heat inside the factory had contributed to his sickness that night and that the heat was starting to overcome him. Nally told Garner that he had gone to the emergency room “last night” because he thought he was dying and that he was suffering from high fever, dehydration, swollen throat, sore muscles and breathing trouble. Garner made no attempts to verify whether or not the other employees sought medical attention except for the doctor’s note provided by West.

After Garner interviewed the workers, Garner and Frankola discussed the story again and decided it should be investigated further. Specifically, they decided that they should check to see if the workers had filed a complaint with their union in order to see if there was any corroborating evidence which supported the employees’ allegations. They also wanted to check with the Indiana Occupational Safety and Health Administration (“IOSHA”). Garner subsequently contacted the worker’s union representative on August 23, 1995, and inquired as to whether the workers had filed a grievance against Kitco. The union representative confirmed that the workers were pursuing their complaint through the grievance procedure and that a hearing was scheduled for September 12, 1995.

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Cite This Page — Counsel Stack

Bluebook (online)
706 N.E.2d 581, 1999 Ind. App. LEXIS 286, 1999 WL 112525, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kitco-inc-v-corporation-for-general-trade-indctapp-1999.