Northport Health Services, Inc. v. Owens

158 S.W.3d 164, 356 Ark. 630, 21 I.E.R. Cas. (BNA) 547, 2004 Ark. LEXIS 197
CourtSupreme Court of Arkansas
DecidedApril 8, 2004
Docket03-678
StatusPublished
Cited by11 cases

This text of 158 S.W.3d 164 (Northport Health Services, Inc. v. Owens) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northport Health Services, Inc. v. Owens, 158 S.W.3d 164, 356 Ark. 630, 21 I.E.R. Cas. (BNA) 547, 2004 Ark. LEXIS 197 (Ark. 2004).

Opinion

Robert L. Brown, Justice.

This is an appeal from a judgment in favor of appellees Diane Owens and Alisa Main and against appellants Northport Health Services, Inc., and Kristy L. Unkel. The judgment specifies that (1) Diane Owens was entitled to judgment against Northport and Unkel for $67,740 for wrongful termination and $200,000 for defamation; and (2) Alisa Main was entitled to judgment against Northport and Unkel for $65,000 for defamation. Northport and Unkel raise the following points on appeal: (1) they are entitled to judgment as a matter of law on the defamation claims, because there was no substantial evidence that actionable defamation occurred or that either Owens or Main suffered damage to their reputations; (2) the evidence was insufficient to support any award of damages to Owens or Main on their defamation claims; (3) Northport is entitled to judgment as a matter of law on Owens’ claim of wrongful discharge; and (4) the verdict amount in favor of Owens on her wrongful-discharge claim is excessive and against the clear weight of the evidence. We affirm.

Diane Owens and Alisa Main are licensed practical nurses. Owens worked for Northport from March 1999 to April 2000. Main was also employed by Northport in 2000 and worked there until she was terminated in April 2000. Northport is an Alabama corporation that owns nursing homes. One of its facilities is Fayetteville Health and Rehabilitation (Fayetteville Health) located in Fayetteville. At all times relevant to this case, Unkei was director of nursing at Fayetteville Health.

During her tenure at the nursing home and prior to April 2000, Owens complained about the nursing care of several certified nurse assistants. She made her complaints directly to Unkei as her superior. Main also complained about the abuse and neglect of the residents to Unkei. At trial, Unkei admitted she had received complaints about the nursing care from both Owens and Main. Prior to April 21, 2000, Owens testified that she complained to the Office of Long-Term Care about the abuse and neglect at Fayetteville Health.

On February 2, 2000, at least six certified nurse assistants (CNAs) wrote a three-page letter to the nursing home administrator at the time, Ralph Johnson, in which they complained about Owens and the difficult work environment she created, including the fact that she asked the CNAs to do tasks they were not licensed to do. In April 2000, there were three incidents where the CNAs complained that Owens and Main had abused or neglected the nursing home residents. On April 5, 2000, Garnette Jones, an Alzheimer patient, allegedly fell from her bed. One CNA allegedly saw Owens observe the incident and fail to fill out an incident report for the fall. However, Owens was not listed on the sign-in sheet for work on that day. Throughout the following two weeks, Ms. Jones complained of hip pain. She was transported to Washington Regional Medical Center and diagnosed with a hip fracture.

Alisa Main was accused of two incidents. On April 12, 2000, she was accused of failing to give a resident, Peggy Neff, her medication. However, one CNA making the allegation, Erika Crabtree, was not listed on the sign-in sheet as working that day. And on April 14, 2000, she was said to have told a resident, Lydia Davis, to “sit the fuck down.”

Following the overnight shift which ended at 6:00 a.m. on April 21, 2000, seven or eight CNAs met with Unkei and assistant director of nursing, Dawna Wilder, for breakfast at a local restaurant and told them that Owens had failed to document Ms. Jones’s fall and that Main had used foul language toward a resident and had failed to administer medications to another.

Later that morning, Unkel and Wilder met with Ken Waldele, the current administrator of the nursing home, to discuss the CNAs’ complaints against Owens and Main. Wilder and Unkel then searched the nursing home records to determine whether Owens had documented the fall or whether anyone had documented Main’s behavior. Unkel and Wilder found nothing in the nursing home records. At 5:00 p.m. that same day, Wilder and Unkel met again with the administrator. Wilder testified at trial that this was when the administrator instructed them to report the suspected abuse to the Office of Long-Term Care and the Fayetteville Police Department. The timing of the report, however, is disputed by the evidence. 1 Owens and Main were suspended from work at the nursing home. On April 24, 2000, they were fired.

On May 23, 2001, Owens and Main sued Northport and Unkel and alleged, among other causes of action, wrongful termination and defamation. They prayed for back pay and benefits; reinstatement to their former positions or front pay and benefits; compensatory damages for humiliation, emotional and mental distress, physical injury, damage to reputation, and intentional infliction of emotional distress; and punitive damages. Northport and Unkel answered and pled the affirmative defenses of immunity and good faith, that Owens and Main were at-will employees, and that the defamation claim should be dismissed for failure to prove actual injury to reputation.

Northport and Unkel then moved for summary judgment against Owens and Main and asserted the defense of qualified immunity. The motions were not 'pursued, and the appellants obtained no ruling from the circuit court.

The matter was tried to a jury over four days. At the trial, Owens and Main presented testimony that Owens had made abuse complaints against various CNAs before the complaints were made against her in April 2000; that nurses’ notes were missing from the nursing home files from March 6 to April 16, 2000; that April 2000 acuity reports and incident reports were also missing; that Diane Owens was not listed on the nurse’s sign-in sheet for April 5, 2000, when she supposedly failed to chart Ms. Jones’s fall, and that the nursing home knew that complaint was false; and that Erika Crabtree did not sign her name to a sign-in sheet for April 14, 2000, when she complained that Main had verbally abused a patient.

At the conclusion of Owens’s and Main’s case, Northport and Unkel moved for a directed verdict on the basis that it had qualified immunity from such a lawsuit and that good faith was presumed. They further contended that Owens and Main were at-will employees. The circuit court denied the motions and ruled similarly when the motions were renewed at the close of all the evidence.

The case was submitted to the jury on eighteen special interrogatories, and the jury returned all verdicts in favor of Owens and Main. Judgment was subsequently entered and damages awarded as previously related in this opinion. Northport and Unkel appealed to the court of appeals, and the judgment was affirmed. See Northport Health Servs., Inc. v. Owens, 82 Ark. App. 355, 107 S.W.3d 889 (2003). On the issue of Northport’s and Unkel’s qualified immunity, the court of appeals held that the appellants had waived this defense by not obtaining a ruling from the circuit court on their summary-judgment motions and by not appealing a denial of their motions by interlocutory appeal to an appellate court. Northport and Unkel next petitioned this court for review, which we granted.

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Cite This Page — Counsel Stack

Bluebook (online)
158 S.W.3d 164, 356 Ark. 630, 21 I.E.R. Cas. (BNA) 547, 2004 Ark. LEXIS 197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northport-health-services-inc-v-owens-ark-2004.