Middle States Holding Co. v. Thomas

668 A.2d 5, 340 Md. 699
CourtCourt of Appeals of Maryland
DecidedDecember 5, 1995
DocketNo. 118
StatusPublished
Cited by12 cases

This text of 668 A.2d 5 (Middle States Holding Co. v. Thomas) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Middle States Holding Co. v. Thomas, 668 A.2d 5, 340 Md. 699 (Md. 1995).

Opinion

ELDRIDGE, Judge.

This case arose out of a contract, entered in April 1990, between the predecessor of the petitioner Middle States Holding Company, Inc., and the respondent Everett Thomas, for the raising of hogs on a farm leased by Thomas in Caroline County, Maryland. Under the contract, Middle States’ predecessor agreed to supply hogs and feed to Thomas who would raise and care for the animals until they reached market weight. Middle States’ predecessor was to retain ownership of the animals and was to pay Thomas a stipulated fee for each hog shipped to market. From April 1990 until December 1990, numerous hogs were delivered to Thomas, fed and cared for, and shipped to market without incident. In December 1990, however, difficulties arose between Middle States and Thomas. On December 19, 1990, employees of Middle States entered the farm and removed all of the remaining hogs.

Thereafter, Thomas instituted the present action against Middle States and its general manager in the Circuit Court for Caroline County. Thomas’s complaint, as amended, alleged breach of contract (count one), trespass (count two), conversion of the hogs (count three) and civil violations of the federal Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. §§ 1961 et seq. (count four). Thomas sought both compensatory and punitive damages under each of the first three counts, and he sought treble damages under the fourth count pursuant to 18 U.S.C. § 1964(c).

[701]*701The defendants filed a motion to dismiss, asserting various grounds. After a hearing, the circuit court granted the motion to dismiss with regard to the RICO count and the requests for punitive damages under the first three counts. The ease then went to trial before a jury. After the close of the plaintiffs case, the circuit court granted a motion for judgment in favor of Middle States’ general manager on all counts; the court also granted Middle States’ motion for judgment on the trespass count.

The case was submitted to the jury on the breach of contract and conversion counts against Middle States. The jury returned a verdict in favor of Thomas in the amount of $12,126.08 on the contract count and $72,000.00 on the conversion count. The circuit court denied Middle States’ motion for a new trial as to liability, but the court granted a new trial on damages after Thomas would not agree to a remittitur. The new trial resulted in a jury verdict awarding Thomas $9,411.60 on the contract count and $12,853.00 on the conversion count.

Both Thomas and Middle States took appeals to the Court of Special Appeals. The intermediate appellate court, in an unreported opinion, affirmed in part, reversed in part, and remanded for further proceedings consistent with its opinion. The Court of Special Appeals held that the circuit court had not abused its discretion when, after the first jury’s verdict, the court ordered a new trial on damages. The Court of Special Appeals also affirmed the judgment with respect to the contract count. Since the trial court’s dismissal of the RICO count had not been challenged on appeal, the dismissal of that count was left intact. The appellate court, however, held that the circuit court erred in granting the motion for judgment in favor of Middle States’ general manager on both the trespass count and the conversion count. In addition, the Court of Special Appeals held that the trial court erred in granting judgment in favor of Middle States on the trespass count. The appellate court further held that Thomas had presented no evidence supporting his entitlement to damages for conversion in addition to the damages awarded for breach of contract; thus, the appellate court ruled that “the trial [702]*702court abused its discretion when it denied Middle States’ motion for a new trial or order of remittitur with respect to the damages awarded for conversion.” None of the above-summarized rulings by the Court of Special Appeals has been challenged in this Court; therefore, we intimate no opinion regarding them.

Turning to the request for punitive damages, the Court of Special Appeals upheld the circuit court’s dismissal of the punitive damages claim under the breach of contract count, pointing to the settled Maryland law that punitive damages are not recoverable in a breach of contract action. See, e.g., Alexander v. Evander, 336 Md. 635, 645 n. 8, 650 A.2d 260, 265 n. 8 (1994); K & K Management v. Lee, 316 Md. 137, 169, 557 A.2d 965, 981 (1989). With regard to the trespass and conversion counts, however, the intermediate appellate court held that the factual allegations in Thomas’s complaint were sufficient to allege “actual malice” on the part of the defendants under the standard for the allowability of punitive damages set forth in Ellerin v. Fairfax Savings, 337 Md. 216, 227-228, 652 A.2d 1117, 1122-1123 (1995); Komornik v. Sparks, 331 Md. 720, 724-725, 629 A.2d 721, 723 (1993); and Owens-Illinois v. Zenobia, 325 Md. 420, 454-460, 601 A.2d 633, 649-653 (1992). See also Montgomery Ward v. Wilson, 339 Md. 701, 733-735, 664 A.2d 916, 932-933 (1995), and cases there cited. Consequently, the Court of Special Appeals in the present case went on to hold that the trial court erred in dismissing the claim for punitive damages with respect to the trespass and conversion counts. Again, these rulings by the Court of Special Appeals have not been challenged in this Court and are not before us.

Finally, the Court of Special Appeals addressed a matter that was neither raised in the trial court nor raised on appeal. In that part of its opinion discussing punitive damages, the intermediate appellate court stated:

“[T]he evidence of actual malice presented by [Thomas] was legally sufficient to withstand a motion for judgment____ In the event that a new trial is held on Count II (trespass) [703]*703or Count III (conversion), the issue of punitive damages must be submitted to the jury.”

At the conclusion of its opinion, immediately prior to the judgment remanding for further proceedings consistent with the opinion, the Court of Special Appeals reiterated:

“In the event that a new trial is held on any of the outstanding claims, the issue of punitive damages must be submitted to the jury.”

Middle States has filed in this Court a petition for a writ of certiorari, presenting a single question as follows:

“Petitioner seeks issuance of a Writ of Certiorari to review that portion of the Mandate of the Court of Special Appeals which requires that the issue of punitive damages must be submitted to the jury in the event a new trial is held on any of the outstanding claims, regardless of the legal sufficiency of the evidence which may be provided.”

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Bluebook (online)
668 A.2d 5, 340 Md. 699, Counsel Stack Legal Research, https://law.counselstack.com/opinion/middle-states-holding-co-v-thomas-md-1995.