Murray v. Wal-Mart, Inc.

874 F.2d 555, 1989 WL 48007
CourtCourt of Appeals for the Eighth Circuit
DecidedMay 11, 1989
DocketNo. 88-2272
StatusPublished
Cited by50 cases

This text of 874 F.2d 555 (Murray v. Wal-Mart, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murray v. Wal-Mart, Inc., 874 F.2d 555, 1989 WL 48007 (8th Cir. 1989).

Opinion

BEAM, Circuit Judge.

Wal-Mart challenges the district court’s1 judgment for the plaintiff, Mary Murray. Murray sued Wal-Mart and the City of Blytheville for malicious prosection, intentional infliction of emotional distress, and violation of 42 U.S.C. § 1983 (1982), after she was detained and prosecuted for shoplifting in a Wal-Mart store. The City agreed to a settlement after completion of the plaintiffs case-in-chief. The suit against Wal-Mart was heard to a conclusion by the district court sitting without a jury. The court awarded Murray compensatory damages, punitive damages, and attorney fees. We affirm.

I. BACKGROUND

Murray, a black female, was shopping at Wal-Mart on June 14, 1986, with her daughter and grandchildren. During her visit to the store, she put one hundred dollars’ worth of merchandise on layaway, purchased fifteen dollars’ worth of other items, and left the store with $207 in her possession. While shopping, Murray had been observed by Dana Elliot, a Wal-Mart loss prevention employee. Elliot testified at trial that she had seen Murray take a bottle of cologne, valued at $5.87, out of its box and place the bottle inside her halter top.

As Murray was leaving the store, Elliot, store manager Earnest Harris, and an assistant store manager detained Murray and inquired about the cologne. Murray denied the accusation of shoplifting and pulled her halter top down to show that she was not concealing any merchandise. Harris directed Murray to accompany him back into the store. Profane and racially derogatory comments were made by Harris at this time.

Murray was escorted to the second floor of the store. Harris or Elliot emptied the contents of Murray’s purse onto the floor. More derogatory statements were made to Murray while this episode unfolded. The Wal-Mart employees then telephoned the local police and, based upon the advice of a local prosecutor, requested prosecution of Murray for shoplifting. Murray was taken into custody and was searched by a female officer at the station. The search revealed no concealed items. Murray was denied access to her heart medication when she requested it for pain. Following her release, she sought medical attention because of her nervous condition.

Wal-Mart has an established shoplifting policy which provides that (1) Wal-Mart employees should treat a suspected shoplifter with courtesy, (2) employees should let suspected shoplifters go when in doubt or when unable to find items on the person, and (3) store managers should check with the regional supervisor before prosecuting doubtful cases.

Despite this established policy, and notwithstanding the fact that a thorough search of Murray revealed no concealed merchandise, Wal-Mart continued to pursue Murray’s prosecution. Subsequently, Murray was charged with shoplifting but, after trial, was acquitted.

In Murray’s section 1983 action, the district court based its jurisdiction over Wal-Mart on two grounds. First, the court held that it had federal question jurisdiction over the claims against Wal-Mart because Wal-Mart had acted under color of state law. Therefore, a cognizable section 1983 claim existed against Wal-Mart. Second, the court had allowed the state claims asserted against Wal-Mart to be joined with the federal claims against the City, under the doctrine of pendent jurisdiction. And, the court exercised its discretion to retain [558]*558jurisdiction over the state claims even after the City had settled and was dismissed.

Addressing the merits, the district court found that Wal-Mart had pursued prosecution without probable cause, that the intentional and outrageous conduct of the Wal-Mart employees caused Murray to suffer severe emotional distress, and that the conduct was willful, wanton, and malicious. Consequently, the court awarded Murray $15,000 in actual damages, $10,000 in punitive damages, and $7850 in attorney fees.

II. DISCUSSION

A. Jurisdiction

We agree with the two grounds for jurisdiction articulated by the district court. Although diversity jurisdiction did not exist in this case, the establishment of a section 1983 claim against Wal-Mart created federal question jurisdiction for the district court, allowing the court to preside over the case even after the City had settled. In addition, even if no cognizable section 1983 action existed, the district court could still retain jurisdiction over the pendent state claims against Wal-Mart.

While it is generally recognized that a district court with no jurisdiction over the federal claim asserted by a plaintiff has no jurisdiction over pendent state claims, United Mine Workers v. Gibbs, 383 U.S. 715, 722, 86 S.Ct. 1130, 1136-37, 16 L.Ed.2d 218 (1966); Lubin v. Crittenden Hosp. Ass’n, 713 F.2d 414, 415 (8th Cir.1983), cert. denied, 465 U.S. 1025, 104 S.Ct. 1282, 79 L.Ed.2d 685 (1984), such is not a mandatory jurisdictional rule, Carnegie-Mellon Univ. v. Cohill, 484 U.S. 343, 108 S.Ct. 614, 619 n. 7, 98 L.Ed.2d 720 (1988). Substantial investment of judicial time and resources, as well as other factors such as convenience, fairness, and comity, may justify the exercise of jurisdiction over the state claims after the federal claim has been dismissed from the suit. Id.; North Dakota v. Merchants Nat’l Bank & Trust Co., 634 F.2d 368, 371 (8th Cir.1980). Here, the district court properly exercised its discretion to retain jurisdiction over pendent state claims against Wal-Mart based on the substantial time expended in federal court and the potential hardship on the plaintiff.

B. Color of State Law

Wal-Mart initially contends that, because Wal-Mart is a private entity, Murray must establish that Wal-Mart acted under color of state law, and she failed to do so. Wal-Mart submits that the complaint failed to allege specific facts necessary to find liability of a private person under section 1983. Wal-Mart alternatively argues that, even if the complaint was sufficient, Murray failed to establish her claim against the store because the evidence did not show a pre-ar-ranged plan between the police and the store. Wal-Mart concludes that the actions of its employees, absent a pre-ar-ranged plan, did not rise to the level of action under color of state law, as required for a successful section 1983 action against a private entity.

A complaint need not be articulately drafted in order to adequately allege that private persons are acting under color of state law. See El Fundi v. Deroche, 625 F.2d 195, 196 (8th Cir.1980) (per curiam). Here, Murray’s complaint set out a detailed rendition of the events which occurred when she was detained for shoplifting. She alleged that “each and all the acts” which she set forth in her complaint “were done by the Defendants under the color and pretense” of state law.

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Bluebook (online)
874 F.2d 555, 1989 WL 48007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murray-v-wal-mart-inc-ca8-1989.