Miller v. DANVILLE ELKS LDG. 332, BPOE

569 N.E.2d 1160, 211 Ill. App. 3d 145, 155 Ill. Dec. 549, 1991 Ill. App. LEXIS 472, 1991 WL 41998
CourtAppellate Court of Illinois
DecidedMarch 28, 1991
Docket4-90-0525
StatusPublished
Cited by14 cases

This text of 569 N.E.2d 1160 (Miller v. DANVILLE ELKS LDG. 332, BPOE) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. DANVILLE ELKS LDG. 332, BPOE, 569 N.E.2d 1160, 211 Ill. App. 3d 145, 155 Ill. Dec. 549, 1991 Ill. App. LEXIS 472, 1991 WL 41998 (Ill. Ct. App. 1991).

Opinion

JUSTICE McCULLOUGH

delivered the opinion of the court:

Plaintiff, Cindy Miller, brought a defamation action against three co-workers and her employer, Danville Elks Lodge 332 (Elks). She appeals from an order of summary judgment in favor of defendants Elks, Hal Hedges, and Carol Shaw. Defendant Cathy Jacobs is not a party to this appeal.

Plaintiff was employed by the Elks from January 1982 to March 17, 1986. At the time the alleged defamation occurred, plaintiff acted as comptroller for the Elks and was paid $18,000 per year. Defendants Cathy Jacobs and Carol Shaw worked under plaintiff in the accounting department; Carol Shaw was responsible for accounts payable, and Cathy Jacobs was responsible for, among other things, the petty cash fund. This fund, containing between $1,500 and $2,000, insured there was adequate cash for the Elks’ clubhouse, bar, and pool facilities.

This case began as defendant Cathy Jacobs approached Ron Cole, an officer of the Elks, telling him of allegedly improper practices in the accounting department. An informal meeting was then held at Cole’s house, attended by Cathy Jacobs and Carol Shaw, and officers Monte Goodwin, Sam Shank, Ron Cole, Frank Young, Murray Jordan, and Bob Hoskinson. Shaw had been laid off one week prior to the meeting, apparently for financial reasons.

At this meeting, Jacobs and Shaw alleged plaintiff (1) borrowed money from the petty cash fund, (2) made long-distance personal phone calls without reimbursing the Elks for all the calls, and (3) paid herself an extra paycheck. Plaintiff extensively discusses the allegations concerning the personal long-distance calls and the extra paycheck. However, these allegations are not complained of in plaintiff’s cause of action and are irrelevant to the issues in this appeal.

Jacobs brought three IOU slips to the meeting, all signed “Cindy,” for $10, $15, and $265. A photocopy of these slips was shown to plaintiff, Ron Cole, Carol Shaw, and Cathy Jacobs at their depositions. Plaintiff first denied she signed any of the slips, then upon reviewing her deposition testimony, changed her answer to “yes.” Plaintiff explained she amended her answer because she “may have signed it for purchases of store goods, or something of that nature.” She denied ever borrowing funds from petty cash for personal purposes.

At her deposition, Shaw identified three slips as those Jacobs brought to the meeting, but could only identify one of the slips, for $15, as being in plaintiff’s handwriting. Shaw testified she had seen other slips signed “Cindy,” in addition to those three. Jacobs also identified the three slips, and denied she signed them “Cindy.” She testified sometimes she signed “Cindy” on IOU slips at plaintiff’s request. Jacobs testified plaintiff borrowed money from the petty cash fund, and her highest balance owed the fund was over $1,000. Jacobs knew this because she had to figure in the IOU slips to make the petty cash fund balance. When Jacobs left the Elks, a few days after plaintiff left, she believed plaintiff owed no money to the petty cash fund.

After the meeting at Ron Cole’s house, Frank Young and Bob Hoskinson investigated the allegations. In the search for records of the petty cash fund, they found voucher slips signed “Cindy.” Frank Young testified he could not remember whether they found the slips at the Elks, or if they were given to him at the meeting.

A second meeting was scheduled to report the findings of this investigation. Before this meeting, plaintiff told Shank that Jacobs was borrowing the money from petty cash, and that plaintiff would pay for the phone calls. Shank testified that when he told her of the second meeting, plaintiff offered to attend if he wanted her to. Plaintiff testified she asked to attend the meeting to rebut the allegations, and Shank said he would call her about the meeting, which he never did.

After the second meeting, Sam Shank, Frank Young, and Bob Hoskinson were delegated to speak to plaintiff the next day, Monday, March 17. Shank testified the group was to ask for plaintiff’s resignation or fire her. A few hours before they were to speak with plaintiff on Monday, Jim Benford, secretary of the Elks and secretary of the management committee, asked Hal Hedges, “Well what the hell is going on around here?” Hal Hedges replied, “Cindy has been taking money from petty cash.” Cindy then denied this, and Hedges said, “I didn’t mean it that way.” Hedges explained, “That’s what I heard.”

When the three met with plaintiff on Monday, she denied borrowing from petty cash, and again alleged it was not her but Jacobs. There is some dispute whether plaintiff was fired or resigned that Monday afternoon. Sam Shank told plaintiff because she allowed the borrowing from the petty cash fund to occur, allowed the unauthorized use of the phone, and wrote herself the extra check, they would accept the offer of resignation she had made the previous Friday. When she asked Shank if he was asking for her keys, he replied, “Yes.” She handed him her keys and believed she had been terminated. In her deposition testimony, plaintiff denied ever offering to resign.

Plaintiff later applied for unemployment benefits, which the Elks contested on the basis that she had resigned. Carolyn Hamilton, an Illinois Department of Employment Security (Department) adjudicator, spoke by telephone with Bill Young, the immediate past chairman of the board of trustees of the Elks. Hamilton’s handwritten notes of the conversation, although not a verbatim transcript, reported Bill Young as stating, “Cindy misused funds from the club. We feel she took the funds, not the [other] person. *** We haven’t pressed any charges.” Bill Young said plaintiff resigned. From her investigation, Hamilton determined the Elks discharged plaintiff because they believed she was responsible for accounting discrepancies. While Hamilton found plaintiff’s actions were “ill-thought,” no misconduct or wilful disregard of the employer’s interests was shown.

Plaintiff filed a four-count complaint alleging defendants Elks, Hedges, Shaw, and Jacobs made the following defamatory statements:

Count I alleged the Elks, through agent Bill Young, told Carolyn Hamilton, “Cindy misused funds from the club.” And, “We feel she took the funds, not the [other] person.”

Count II alleged Hal Hedges said “ ‘Cindy has been taking money from petty cash,’ ” to Jim Benford, meaning that “Plaintiff was stealing money from” the Elks.

Count III alleged Carol Shaw told the Elks’ board or officers plaintiff was taking sums of money from petty cash without authority.

Count IV alleged Cathy Jacobs told the Elks’ board or officers plaintiff was taking sums of money from the petty cash fund without authority.

Defendants Carol Shaw, the Elks, and Hal Hedges moved for summary judgment. The court granted summary judgment for these defendants, and made a Rule 304(a) finding (107 Ill. 2d R. 304(a)); count IV against Cathy Jacobs remained pending before the trial court.

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Bluebook (online)
569 N.E.2d 1160, 211 Ill. App. 3d 145, 155 Ill. Dec. 549, 1991 Ill. App. LEXIS 472, 1991 WL 41998, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-danville-elks-ldg-332-bpoe-illappct-1991.