Orkin Exterminating Co., Inc. v. Traina

461 N.E.2d 693, 1984 Ind. App. LEXIS 2443
CourtIndiana Court of Appeals
DecidedMarch 26, 1984
Docket4-782A193
StatusPublished
Cited by23 cases

This text of 461 N.E.2d 693 (Orkin Exterminating Co., Inc. v. Traina) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Orkin Exterminating Co., Inc. v. Traina, 461 N.E.2d 693, 1984 Ind. App. LEXIS 2443 (Ind. Ct. App. 1984).

Opinions

CONOVER, Presiding Judge.

Orkin Exterminating Co., Inc. (Orkin) appeals a judgment rendered against it upon a jury verdict in favor of Charles Traina (Charles) and Michelle Traina (Michelle) awarding them $400,000 in punitive damages. It does not take issue with a $65,000 award to Charles for compensatory damages, or a $2,500 award to Michelle for loss of consortium.

We affirm.

ISSUES

This appeal presents the following issues:

1. Whether an employer’s failure to discharge or closely supervise an employee it discovers carrying an illegal firearm on company property constitutes wilful and wanton misconduct when such employee’s subsequent negligence involving the firearm results in serious injury to one of the employer’s customers.

2. Whether the trial court erred in giving a punitive damages instruction which advised the jury,

a. punitive damages could be awarded for mere wantonness,
b. punitive damages were appropriate if an employee were “unfit” and the employer “reckless” in employing or retain[696]*696ing him, and contained statements which were internally inconsistent.

FACTS

Charles and Michelle, newlyweds, purchased a home in northern Indianapolis in June of 1979. Shortly after moving, they discovered a number of flying ants. Because of Orkin's billboard and television advertising, Charles contacted Orkin’s Indianapolis office. After a visit by an Orkin representative, Charles signed a one year service contract.

On September 22, 1979, one of Orkin’s pest control technicians, Jesse James Coleman (Coleman), came to the Traína home to apply pest spray in the basement. As Coleman bent over to do his work, a tear gas gun (pen gun) Coleman had modified to fire a .25 caliber bullet, fell from his shirt pocket and discharged when it hit the concrete floor. The bullet struck Charles in the right forearm, severely injuring him. He was standing in a basement doorway watching Coleman work when the weapon discharged.

Orkin, the world’s largest termite and pest control company, has more than 330 offices in the United States and Canada. Its pest control technicians enter the homes of Orkin’s customers and perform their work without supervision, sometimes when the owners are absent. Orkin has developed extensive written policy statements describing the procedures to be followed by its supervisory personnel when hiring and training new employees. It hired Coleman as a pest control technician on August 27, 1979.

As to Coleman, Orkin’s Indianapolis management personnel failed to follow Orkin’s hiring and training procedures by failing to

(a) adequately train management trainee Hinkley, who hired Coleman, in its hiring procedures,
(b) check Coleman’s work history and reputation with the required five of his former employers rather than with the only one it did, the Indiana University, Purdue University at Indianapolis (I.U.P. U.I.) security department,
(c) interrogate him regarding the “gaps” in his prior employment history revealed by his employment application, and
(d) train him for his position as a pest control technician in the required manner and for the required length of time.

However, an exhaustive background check only would have revealed an unremarkable employment history in Coleman’s case, that is, no facts which would have put Orkin on notice a catastrophic event such as is here involved was likely to occur as a result of Orkin’s proposed employment of Coleman.1

In September, 1979, two days before Charles was shot, Hinkley discovered Coleman at the office working on his pen gun. Coleman had both read and understood Or-kin’s company policy prohibiting the carrying of firearms either on its property or in a customer’s home. He told Hinkley he carried the pen gun to protect himself from “big loose dogs”, one of which had chased him to the top of his truck. He had, however, reduced the shell’s powder charge so as not to kill any dogs. Orkin did not give its pest control technicians dog protection [697]*697training. Coleman had discussed his dog problem with Hinkley on two previous occasions.

Hinkley strongly told Coleman not to carry the weapon, it was against company policy. He told Coleman to stand still with palms outstretched toward any threatening^ dog and greet him so he wouldn’t bite, substantially the same advice he had given Coleman previously. Coleman agreed not to carry the weapon, saying he understood the reasons why he should not.

. Upon that understanding, Hinkley dropped the subject. He assumed Coleman would obey him, and made no further effort to check whether Coleman was complying with his order, either by visual observation or by asking Coleman if he was carrying the weapon, and failed to report the matter to his superiors. Coleman returned to his duties, again unsupervised.

Violation of Orkin’s firearms policy was grounds for immediate termination. Coleman was terminated two days later after he drove Charles to the hospital.

Orkin’s net worth at the end of 1981 was $48,836,000. It appeals only the jury’s exemplary damage award of $400,000.'

DISCUSSION AND DECISION

I.

A. The Armstrong Rule

Our supreme court recently decided the case of Traveler’s Indemnity Co. v. Armstrong, (1982) Ind., 442 N.E.2d 349, a tor-tious breach of contract case where the jury awarded punitive damages. This case changed the quantum of evidence which must be presented before a jury may return an award of punitive damages in such cases from a “preponderance of the evidence” to a “clear and convincing” standard.

In Armstrong, Justice Prentice- said:

[Pjunitive damages should not be allowable upon evidence that is merely consistent with the hypothesis of malice, fraud, gross negligence or oppressiveness. Rather some evidence should be required that is inconsistent with the hypothesis that the tortious conduct was the result of a mistake of law or fact, honest error of judgment, over-zealousness, mere negligence or other non-iniquitous human failing.... [A] requirement of proof by clear and convincing evidence furthers the public interest when punitive damages are sought.

Armstrong, 442 N.E.2d at 362-363.

B. Armstrong Rule Applies to “Pure” Tort Cases

Armstrong has retrospective as well as prospective application in tortious breach cases. Don Medow Motors, Inc. v. Grauman, (1983) Ind.App., 446 N.E.2d 651. It applies retroactively to all cases involving punitive damages whether on appeal or otherwise. Farm Bureau Mutual Ins. Co. v. Dercach, (1983) Ind.App., 450 N.E.2d 537. Cases decided since Armstrong which reversed and remanded punitive damage awards for re-trial under Armstrong’s clear and convincing evidence rule are Lloyd’s of London v. Lock, (1983) Ind.App., 454 N.E.2d 81;

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Orkin Exterminating Co., Inc. v. Traina
461 N.E.2d 693 (Indiana Court of Appeals, 1984)

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Bluebook (online)
461 N.E.2d 693, 1984 Ind. App. LEXIS 2443, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orkin-exterminating-co-inc-v-traina-indctapp-1984.