Kloch v. Ratcliffe

375 N.W.2d 916, 221 Neb. 241, 1985 Neb. LEXIS 1242
CourtNebraska Supreme Court
DecidedNovember 8, 1985
Docket84-642
StatusPublished
Cited by14 cases

This text of 375 N.W.2d 916 (Kloch v. Ratcliffe) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kloch v. Ratcliffe, 375 N.W.2d 916, 221 Neb. 241, 1985 Neb. LEXIS 1242 (Neb. 1985).

Opinions

Boslaugh, J.

This was an action for slander in which the jury returned a verdict for the plaintiff in the amount of $375,000. The defendant’s motion for judgment notwithstanding the verdict was sustained and the petition dismissed. The plaintiff has appealed. By a cross-appeal the defendant submits additional reasons for affirming the judgment of the district court.

On April 18, 1982, the plaintiff, Stephen L. Kloch, was employed as a locomotive engineer by the Burlington Northern railroad. He was returning to Alliance, Nebraska, from Edgemont, South Dakota, as the engineer on a freight train which entered the Alliance yard at about 3 a.m. According to the yard office, the plaintiff’s train arrived in the yard at 3:02 a.m.

At about the same time, the defendant, Edward G. Ratcliffe, a road foreman employed by the railroad, was returning to Alliance from Crawford, Nebraska, by automobile. One of the duties of a road foreman is to run “efficiency tests” on locomotive engineers employed by the railroad. The defendant had been performing efficiency tests on engineers in the Crawford area.

The defendant was driving on a highway that was alongside [243]*243the track on which the plaintiff’s train was operating. When the defendant observed the train approaching Alliance, he decided to run an efficiency test known as a final terminal delay or “FTD” test on the engineer operating that train. After the train entered the yard, the defendant went to the yard office.

Under the provisions of the operating agreement between trainmen and the railroad, trainmen receive penalty pay (final terminal delay) if the time required to “tie up” after their train enters the yard exceeds 30 minutes. This pay is in addition to their regular pay for “trip miles” but is paid only if the 30-minute limit is exceeded.

The procedure to “tie up” consists of filling out a timecard and signing the register in the yard office. The railroad considers 5 minutes a reasonable time for this activity. The register is the official record of when a trainman’s paid day ends and indicates that he has completed all of his duties and is off duty.

After entering the yard office the defendant went to the tower where he could observe the activity in the yard. He saw the plaintiff arrive at the yard office at 3:29 a.m. by “taxi,” a conveyance provided by the railroad to bring crews to and from the yard office. According to the defendant, the plaintiff did not enter the yard office until 3:34 a.m. Before entering the yard office the plaintiff had walked over to his pickup and engaged in conversation with other trainmen in the area.

After the plaintiff had entered the yard office, the defendant went to the crew caller’s office, which is adjacent to and separated from the register room by a window. After the plaintiff entered the register room, the defendant had one of the crew callers on duty, Joanne Husman, point out the plaintiff. The defendant then compared his watch with the standard clock which was located in the operator’s room adjacent to the crew caller’s office. The defendant’s watch was within 30 seconds of the time shown by the standard clock, which is the permitted variance.

The defendant watched the plaintiff sign the register and then leave the register room. The defendant examined the register and found that the plaintiff had entered 4 a.m. in the register. After the plaintiff had left the building, the defendant [244]*244showed the register to Husman. It was then 3:55 a.m. The defendant noted all of the relevant times in a notebook which he kept for that purpose.

The defendant then attempted to locate the plaintiff outside the yard office, but the plaintiff had left the yard.

The conductor of the train and the other “head end” crew members had recorded 3:40 a.m. as their “tie up” time.

On the following day the defendant reported the results of the test to his superior. It was determined that there should be an “investigation,” as provided for in the operating agreement. A hearing officer was appointed and notice of the hearing served on the plaintiff. The defendant testified at the hearing held on April 30, 1982, that he saw the plaintiff leave the railroad premises at 3:54 a.m., after he had signed out on the federal train register showing his tieup time to be 4 a.m. The defendant’s testimony at the hearing is the basis for this action.

Following the hearing, the plaintiff was found to have violated the rules of the railroad and was discharged on May 28, 1982. The plaintiff appealed his discharge under the provisions of the Railway Labor Act, 45 U.S.C. §§ 151 et seq. (1982). The appeal was in the third stage of the appeal process on December 1, 1982, when the plaintiff was reinstated on a leniency basis without back pay.

This action was filed on January 3,1983.

In sustaining the motion for judgment notwithstanding the verdict, the trial court found that the action was preempted by federal law, that the defendant’s testimony was absolutely privileged, and that there was insufficient evidence of malice to sustain an action if the privilege was only a qualified privilege. The plaintiff’s assignments of error all relate to these findings.

The plaintiff’s claim rests solely upon the statements made by the defendant at the hearing, which was provided for in the operating agreement, and at which the defendant was required to testify. In deciding this case we consider only those matters relating to whether the defendant’s statements were privileged, the extent of the privilege, and whether there was evidence of malice.

With respect to the matter of privilege, the trial court found that the statements made at the hearing were absolutely [245]*245privileged.

The alleged defamatory statements involved in this case consist of the defendant’s answers to four questions asked him by the hearing officer at the April 30 hearing. The officer asked: (1) “Was he [Kloch] claiming then time for payment for which he was not entitled?” Ratcliffe responded, “Yes, sir.” (2) “Would that be considered theft?” Ratcliffe responded, “Yes, sir.” (3) “Is claiming time for pay which is unsubstantiated or unearned theft?” Ratcliffe responded, “Yes, sir.” (4) “Did Mr. Kloch fail to give a factual report concerning his tie up time in the early morning hours of April 18th?” Ratcliffe responded, “Yes, sir.” These statements were clearly relevant to the subject of the hearing.

The only persons present at the hearing were the hearing officer, a stenographer, the defendant, the plaintiff, and a union representative appearing on the plaintiff’s behalf.

The rule of absolute privilege applies not only to judicial proceedings but to quasi-judicial proceedings as well. Sinnett v. Albert, 188 Neb. 176, 195 N.W.2d 506 (1972); Shumway v. Warrick, 108 Neb. 652, 189 N.W. 301 (1922). The hearing or investigation at which the alleged defamatory statements were made is an- arbitration proceeding which is similar to a judicial or quasi-judicial proceeding.

In Neece v. Kantu, 84 N.M. 700, 705-07, 507 P.2d 447, 452-54 (1973), cert. denied 84 N.M. 696, 507 P.2d 443, the Court of Appeals of New Mexico observed:

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Kloch v. Ratcliffe
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Cite This Page — Counsel Stack

Bluebook (online)
375 N.W.2d 916, 221 Neb. 241, 1985 Neb. LEXIS 1242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kloch-v-ratcliffe-neb-1985.