Lillig v. Becton-Dickinson

717 P.2d 1371, 105 Wash. 2d 653, 1986 Wash. LEXIS 1099
CourtWashington Supreme Court
DecidedApril 17, 1986
Docket50912-3
StatusPublished
Cited by61 cases

This text of 717 P.2d 1371 (Lillig v. Becton-Dickinson) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lillig v. Becton-Dickinson, 717 P.2d 1371, 105 Wash. 2d 653, 1986 Wash. LEXIS 1099 (Wash. 1986).

Opinions

Dolliver, C.J.

We accepted this case for review to [655]*655determine whether at trial there was sufficient evidence to support a finding of abuse of a qualified privilege and to support a denial of exemplary damages pursuant to RCW 49.52.070. We find no evidence in the record sufficient to overcome the defendant's qualified privilege and we find sufficient evidence of a bona fide dispute adequate to uphold a denial of exemplary damages. We, therefore, affirm the Court of Appeals.

I

Michael Lillig worked for Becton-Dickinson (B-D) as a medical supply salesman. In addition to salary, B-D offered an incentive bonus plan. B-D reserved the right to make adjustments in the bonus plan in cases of windfall volume, adverse economic factors, or new product sales. The plan provided that "[n]o bonus will be paid to any sales representative who is not on roll on December 1, 1979."

In the fall of 1979, Regional Sales Manager James Krachenfels asked Lillig to resign. Unwilling to forgo his bonus, Lillig said he would resign before December 1, 1979, if given written assurance his resignation would not affect his 1979 bonus. On November 9, 1979, Krachenfels gave Lillig the following handwritten assurance: "Be advised that you will not be underpaid on your 79' bonus because of resigning before the Dec. 1st guideline." Lillig tendered his resignation before December 1, 1979. On December 13, 1979, B-D sent Lillig a check in the amount of $3,950. By way of an attachment, B-D explained that this "Incentive Compensation Check . . . represents 25% of your $15,800.00 base salary."

On May 19, 1980, Lillig commenced this suit for breach of contract. In the course of pretrial discovery, Lillig discovered a memorandum in his B-D personnel file in which Krachenfels set forth the reasons behind the decision to ask for Lillig's resignation. Among other things, Krachenfels wrote that " [Lillig] lied to a dealer ..." After finding this memo, Lillig amended his complaint to add a claim for libel.

[656]*656The trial court granted Lillig's motions for partial summary judgment on several issues. The court found the 1979 plan and Krachenfels' written assurance were both enforceable contracts, that B-D had breached these contracts, and that the amount of bonus moneys to which Lillig was entitled was to be computed according to the formula set forth in the plan. The court also found Krachenfels had the apparent authority to make the written assurance concerning the effect of Lillig's resignation on his 1979 bonus.

The amount of the bonus due under the plan was contested. At trial, counsel for B-D admitted, in opening and closing statements, that Lillig ought to have been paid a bonus of $9,854.23. Lillig asserted he was entitled to a bonus of $14,556. B-D contended this latter figure failed to account for numerous adjustments to the bonus pool amount for variables such as windfall sales volume and sales attributable to managers and other nonsales personnel.

As to the libel claim, testimony revealed Krachenfels' statement about Lillig's lie stemmed from a conversation he had overheard between Lillig and a dealer. Krachenfels testified that, when he confronted Lillig about the matter, Lillig responded, in effect, that it was of no consequence. Krachenfels interpreted this as an admission and did not investigate further. Lillig asserted he did not lie and that his remarks to the dealer were misunderstood by Krachen-fels. He also testified he thought he had cleared up the misunderstanding to Krachenfels' satisfaction.

The jury determined Lillig was entitled to a bonus in the amount of $14,556; it awarded him $12,685 for special damages as a result of B-D's breach of contract; it also returned a $50,000 verdict for Lillig on his libel claim.

B-D moved for a new trial or judgment notwithstanding the verdict. Lillig moved for exemplary damages under RCW 49.52.070 and attorney fees under either RCW 49.48-.030 or RCW 49.52.070. The court denied these motions and entered a judgment in the amount of $77,241, less $3,950 (the amount B-D paid prior to commencement of [657]*657this action).

B-D appealed the judgment for libel. Lillig cross-appealed the trial court's denial of statutory exemplary damages and attorney fees on his bonus claim. On B-D's appeal, the Court of Appeals concluded Lillig's proof failed to overcome the employer's qualified privilege. The court reversed the judgment fixing damages for libel and dismissed that cause of action. On Lillig's cross appeal, the Court of Appeals determined Lillig was entitled to attorney fees under RCW 49.48.030, but held the trial court properly denied exemplary damages under RCW 49.52.070.

II

Libel

Lillig challenges the Court of Appeals dismissal of his libel award. The Court of Appeals reversed the trial court's award stating there was no evidence presented in the record to overcome B-D's qualified privilege.

In reviewing a trial court's record, the reviewing court must take great care not to substitute its own judgment. State v. O'Connell, 83 Wn.2d 797, 523 P.2d 872 (1974).

As we have said on so many occasions, this court will overturn a jury's verdict only rarely and then only when it is clear that there was no substantial evidence upon which the jury could have rested its verdict. . . . The credibility of witnesses and the weight to be given to the evidence are matters within the province of the jury and even if convinced that a wrong verdict has been rendered, the reviewing court will not substitute its judgment for that of the jury, so long as there was evidence which, if believed, would support the verdict rendered.

(Citations omitted.) State v. O'Connell, at 839.

It was undisputed that Krachenfels had a qualified privilege. To overcome this privilege, at the time of this trial, the plaintiff had the burden of proving the defendant made the statement in bad faith or without an honest belief in the statement. Gem Trading Co. v. Cudahy Corp., 92 Wn.2d 956, 603 P.2d 828 (1979). The defendant's honest [658]*658belief could arise either from fair and impartial investigation or from other reasonable grounds; the plaintiff must offer clear and convincing evidence to the contrary. Owens v. Scott Pub'g Co., 46 Wn.2d 666, 284 P.2d 296 (1955), cert. denied, 350 U.S. 968 (1956).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Waters v. Mitchell
W.D. Washington, 2023
Martin v. Wheeler
W.D. Washington, 2020
Bruce L. Davidson, M.d. v. Robb W. Glenny, M.d., Et Ano.
470 P.3d 549 (Court of Appeals of Washington, 2020)
Brandt v. Beadle
W.D. Washington, 2020
Pengbo Xiao v. Feast Buffet, Inc.
387 F. Supp. 3d 1181 (W.D. Washington, 2019)
Hill v. Garda CL Nw., Inc.
424 P.3d 207 (Washington Supreme Court, 2018)
State Of Washington v. Joshua Joseph Solomon
419 P.3d 436 (Court of Appeals of Washington, 2018)
Allen v. Dameron
389 P.3d 487 (Washington Supreme Court, 2017)
Jumamil v. Lakeside Casino, LLC
319 P.3d 868 (Court of Appeals of Washington, 2014)
Ruby Jumamil v. Lakeside Casino, Llc
Court of Appeals of Washington, 2014
Janee' Wolf v. IDA Marketing Services, Inc.
Court of Appeals of Washington, 2013
Washington State Nurses Ass'n v. Sacred Heart Medical Center
287 P.3d 516 (Washington Supreme Court, 2012)
Morgan v. Kingen
166 Wash. 2d 526 (Washington Supreme Court, 2009)
Duncan v. Alaska USA Federal Credit Union, Inc.
148 Wash. App. 52 (Court of Appeals of Washington, 2008)
Woody v. Stapp
189 P.3d 807 (Court of Appeals of Washington, 2008)
Segaline v. Department of Labor & Industries
144 Wash. App. 312 (Court of Appeals of Washington, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
717 P.2d 1371, 105 Wash. 2d 653, 1986 Wash. LEXIS 1099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lillig-v-becton-dickinson-wash-1986.