Paul v. Lankenau Hospital

543 A.2d 1148, 375 Pa. Super. 1, 4 I.E.R. Cas. (BNA) 1408, 1988 Pa. Super. LEXIS 1582
Superior Court of Pennsylvania·Decided May 24, 1988·No. 2859 and 2958·Published·Cited by 55 cases

Opinions

[5] CIRILLO, President Judge *:

This is an appeal from an order of the Court of Common Pleas of Montgomery County dismissing defendant Lankenau Hospital’s post-trial motion for judgment notwithstanding the verdict or, in the alternative, for a new trial, and plaintiff Dr. Pavle Paul’s motion for removal of nonsuits. Paul had brought suit against Lankenau because of his termination as a research scientist in August of 1980 for removing five small refrigerators from the hospital. Because we believe that the trial court properly upheld the jury verdict for Dr. Paul based on estoppel, properly granted a nonsuit on the counts involving the public policy exception to the at-will employment doctrine, intentional infliction of emotional distress, and implied contract, but improperly nonsuited Dr. Paul on his defamation claim, we affirm in part and reverse in part.

In reviewing the grant or denial of judgment n.o.v., we, as the reviewing court, must determine whether there was sufficient competent evidence to sustain the verdict, granting the verdict winner the benefit of every reasonable inference which can reasonably be drawn from the evidence, and rejecting all unfavorable testimony and inferences. Judgment n.o.v. may be granted only in a clear case where the facts are such that no two reasonable minds could fail to agree that the verdict was improper. Ingrassia Constr. Co. v. Walsh, 337 Pa.Super. 58, 61, 486 A.2d 478, 480 (1984), allowance of appeal denied.

Dr. Pavle Paul received his education and medical degree from the University of Belgrade School of Medicine. He immigrated to this country in 1962; at that time he was hired by Lankenau Hospital for its research department. Although he was not licensed to practice medicine, he was a member of Lankenau’s medical staff from 1965 until his termination in August of 1980. Paul did not have a written contract of employment, although medical staff by-laws did exist, and at the time of his termination, Paul was engaged [6] in several projects which had received or were to receive research grants.

During the time he was employed by Lankenau, Paul began to collect and to ship to Yugoslavia discarded hospital equipment. He did so with the knowledge and permission of supervisory employees at Lankenau. These shipments were authorized by one Raymond Stafford, purchasing manager, until his departure from the hospital in 1979. Stafford was replaced by James Vitale as director of material management. Paul continued his practice of collecting discarded equipment and supplies; although he had little contact with Vitale, his relations with the other supervisory employees remained unchanged.

The dispute which eventually led to the termination of Paul’s employment arose around five refrigerators that he removed from a basement storeroom. Paul claimed that he had received permission from David D’Urbanis, a storeroom supervisor, to remove the refrigerators. Lankenau contended that the removal was unauthorized, and presented evidence to that effect. Lankenau claimed that it was upon the unauthorized removal of the five refrigerators that it requested Paul’s resignation. ■ Paul was informed that failure to resign would result in possible prosecution. Paul resigned.

Paul then filed suit against Lankenau. His complaint contained nine counts sounding in various tort and contract theories, including defamation, wrongful discharge, intentional infliction of emotional distress, and estoppel. The trial court nonsuited Paul on all counts except for Count IV, which was based upon an estoppel argument. That count went to the jury with four special interrogatories:

Do you find that plaintiff Pavle Paul had permission from David D’Urbanis to take the refrigerators from Lankenau Hospital?
Do you find that it was reasonable for plaintiff to rely on permission from David D’Urbanis to take the refrigerators from Lankenau Hospital and that plaintiff fully satisfied any duty that he may have had to inquire [7] whether the refrigerators were of no further use to the hospital?
Do you find that plaintiff Pavle Paul resigned voluntarily from his employment at Lankenau Hospital?
Do you find that defendant Lankenau Hospital acted reasonably and believed in good faith that plaintiff Pavle Paul had taken the refrigerators without permission?

The jury found for the plaintiff, answering the first two interrogatories in the affirmative, and the last two in the negative. The trial, which had been bifurcated, then proceeded to the damages phase. The jury awarded Paul $410,000; the trial court remitted the award to $128,000, the amount Paul would have earned from the time of his termination to the date of the jury verdict.

Both parties filed post-trial motions — Paul for a removal of the nonsuits as to the other eight counts of his complaint, Lankenau for judgment notwithstanding the verdict or for a new trial on Count IV. The motions were denied, and both parties appealed. A panel decision of this court was filed on December 27, 1985, and would have affirmed the decision of the trial court. Lankenau petitioned this court for reargument; Paul sought allocatur from the Pennsylvania Supreme Court. After a conference between parties, it was decided that this court would hear both appeals on reargument in the interest of a uniform disposition of the issues. Paul withdrew his petition for allocatur, and reargument was granted both parties.

Lankenau claims that this court’s en banc decision in Banas v. Matthews International Corp., 348 Pa.Super. 464, 502 A.2d 637 (1985), should control, and that Paul’s claim of estoppel was improperly presented to the jury. Because we find that Paul did indeed make out a claim for estoppel, and that, unlike the employee in Banas, Paul showed both a promise and reasonable reliance upon that promise, we find that Banas does not control here.

Count IV of Dr. Paul’s complaint was in assumpsit and claimed that: “defendant Lankenau Hospital had established for at least fifteen years a consistent policy of [8] permitting plaintiff to remove medical equipment and supplies that were of no further use to the defendant without threat to his employment status. Plaintiff was entitled to rely, and did rely, on said policy____” The complaint describes the nature of Dr. Paul’s reliance. At no time does it ever use the term “equitable estoppel.” Yet for some reason the trial court affixed this legal term of art to the doctor’s claim. Equitable estoppel or estoppel in pais is a defense used to preclude a person from denying or asserting a claim. Its elements are: (1) misleading words, conduct, or silence by the party against whom the estoppel is asserted; (2) reasonable reliance on the misrepresentation by the party seeking to assert the estoppel; and (3) no duty of inquiry on the party seeking to assert estoppel. Stolarick v. Stolarick, 241 Pa.Super. 498, 509, 363 A.2d 793, 799 (1976).

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Paul v. Lankenau Hospital, 543 A.2d 1148, 375 Pa. Super. 1, 4 I.E.R. Cas. (BNA) 1408, 1988 Pa. Super. LEXIS 1582 (Pa. Ct. App. 1988).

543 A.2d 1148 (Paul v. Lankenau Hospital) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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